Does the salary to car value ratio actually mean anything?
Discussion
Deep Thought said:
Nice cars, the M2. Looking at one as a second car to replace my 330i.
Wifie already pays for half of our main car - the M140i, dont think i can convince to go halvers on an M2 too...
Would probably do similar - biggish deposit, cheap loan for the balance.
It took a bit of convincing but while we have no kids and huge commitments it seems like the right time to do it. Just got to get the house sorted first! Wifie already pays for half of our main car - the M140i, dont think i can convince to go halvers on an M2 too...
Would probably do similar - biggish deposit, cheap loan for the balance.
I’m assuming having those two cars you’re collectively earning more? (Don’t feel you have to answer! Cheeky question!)
I agree with those who said that it depends on individual circumstances especially in the current climate. When I was young I bought my first cars on credit.It was the only way I could afford them, but I was also single with no dependents.
Those days are long gone, and for the past few decades I only buy for cash. I am aware of the many other options, but I have always feared a major downturn so went on a zero debt strategy when I was 40. After that, if I hadn't enough money, no car. No house mortgage or the like either.
As you get older the reality is that you have less time to recover from a downturn. If you are 20, then you have 40 years to fix things. At 50 you are getting past the time to make a full recovery and by 60 you had better be debt free.
Those days are long gone, and for the past few decades I only buy for cash. I am aware of the many other options, but I have always feared a major downturn so went on a zero debt strategy when I was 40. After that, if I hadn't enough money, no car. No house mortgage or the like either.
As you get older the reality is that you have less time to recover from a downturn. If you are 20, then you have 40 years to fix things. At 50 you are getting past the time to make a full recovery and by 60 you had better be debt free.
Tobias I am thinking about doing a similar thing to you but buying a Caterham. I really don’t want to take any debt on though. Especially on a car that realistically will probably get driven about 2-3k a year. But saving up £30k+ in the job I have now is not realistic.
Some days I think bigger it get the loan you only live once...
Some days I think bigger it get the loan you only live once...
keo said:
Tobias I am thinking about doing a similar thing to you but buying a Caterham. I really don’t want to take any debt on though. Especially on a car that realistically will probably get driven about 2-3k a year. But saving up £30k+ in the job I have now is not realistic.
Some days I think bigger it get the loan you only live once...
I was initally against buying one until I can buy it outright, but my partner pointed out i don’t spend money on anything else, and we can afford one nice car. I should have about £15k towards it once the house is sorted and fingers crossed the m2’s drop second hand. Some days I think bigger it get the loan you only live once...
Difference being I actually want to own it, not some pcp or lease deals. Most of the people I’ve spoken to are paying £600 a month for 8k miles. I’ll be doing at least 15K a year in it lol.
Interesting thread topic. I think the answer is no, it doesn't mean anything.
I'm sometimes a bit nosey and have a bit of interest in reading what people spend on cars, it can still surprise me at times.
I'd consider myself a petrolhead but have always been satisfied with cheap old cars bought with pocket money. My most expensive purchase to date was £2,250 on an Alfa 159. I'm currently running an X Type as a daily bought for £1,100.
At a stretch I could afford to buy the X Type out of one months disposable income if I chose not to spend on other things. To be honest I'd rather have a nicer house for my family than an expensive car, I've got a decent size 4 bed detached instead.
I'm sometimes a bit nosey and have a bit of interest in reading what people spend on cars, it can still surprise me at times.
I'd consider myself a petrolhead but have always been satisfied with cheap old cars bought with pocket money. My most expensive purchase to date was £2,250 on an Alfa 159. I'm currently running an X Type as a daily bought for £1,100.
At a stretch I could afford to buy the X Type out of one months disposable income if I chose not to spend on other things. To be honest I'd rather have a nicer house for my family than an expensive car, I've got a decent size 4 bed detached instead.
RDMcG said:
I agree with those who said that it depends on individual circumstances especially in the current climate. When I was young I bought my first cars on credit.It was the only way I could afford them, but I was also single with no dependents.
Those days are long gone, and for the past few decades I only buy for cash. I am aware of the many other options, but I have always feared a major downturn so went on a zero debt strategy when I was 40. After that, if I hadn't enough money, no car. No house mortgage or the like either.
As you get older the reality is that you have less time to recover from a downturn. If you are 20, then you have 40 years to fix things. At 50 you are getting past the time to make a full recovery and by 60 you had better be debt free.
Sensible! I’m aiming to be debt free by 50 so got 26 years to get it sorted!Those days are long gone, and for the past few decades I only buy for cash. I am aware of the many other options, but I have always feared a major downturn so went on a zero debt strategy when I was 40. After that, if I hadn't enough money, no car. No house mortgage or the like either.
As you get older the reality is that you have less time to recover from a downturn. If you are 20, then you have 40 years to fix things. At 50 you are getting past the time to make a full recovery and by 60 you had better be debt free.
Pit Pony said:
The last car I bought was 2 days pay after tax.
That was 3.5 years ago. Still got it.
The last car I bought my wife was 3 weeks pay after Tax. I expect it to last 10 years at least.
My current shed is 7 days pay after tax. Not because I can't afford anything better I just like having a car I don't care about. I also love making use of something that still has years of life left, yet most people would rather throw away. I also like being able to tinker and service it myself without having to get ripped off by a main dealer.That was 3.5 years ago. Still got it.
The last car I bought my wife was 3 weeks pay after Tax. I expect it to last 10 years at least.
Just this morning I have had great fun with my new £6 eBay ODB2 blue tooth reader and have found a couple of glow plug error codes I didn't even know I had. Makes sense though as it was slower to start in the cold weather. Just order a set of glow plugs for £22 delivered and looking forward to fitting them.
I make the salary to car ratio about 2% of my pre tax salary. It says nothing apart from the fact that I value having cash and no finance over a car.
jeremyh1 said:
Well we will soon see who fixed the roof when the sun was out in the next few months ! and thats if people still even have a salary
Those who are unfortunate enough to end up liquidating their assets at fire sale prices in the worst recession on record may end up wishing they had someone else's car on the drive to hand back and their own money still in the bank.otolith said:
Those who are unfortunate enough to end up liquidating their assets at fire sale prices in the worst recession on record may end up wishing they had someone else's car on the drive to hand back and their own money still in the bank.
This what I have said previously on this site but everybody said I was talking c$$p . I said that those that did not have the money would be in trouble and that is a high percentage on here .I actually said this as I felt that us leaving the EU would cause a recession non of us expected this but I was right I am tight as a duck ring and I dont post much on here as people learn about how I live and my understanding of the economy . They just say I talk crap because I drive paid for cars .
Well ?
I’m kinda hoping to benefit from the recession which sounds bad! Hopefully see abit of a slight decline in house prices (Where I live it’s £300k for an ok 2 bed house).
That said I won’t be buying a car until I have seen a positive turn. Although it may seem silly to buy such an expensive car, i’m not a complete fool!
That said I won’t be buying a car until I have seen a positive turn. Although it may seem silly to buy such an expensive car, i’m not a complete fool!
I had plans to spend abt £10k on a newer (used) car this yr but am rethinking it now as getting on the property ladder is my priority.
Fwiw my shed's value is ballpark just over 2% of my annual take home. It's does the A to B thing well and is cheap to run but that's it...no bragging rights, looks battered and the seats are painful for longer trips but I'm not complaining.
Fwiw my shed's value is ballpark just over 2% of my annual take home. It's does the A to B thing well and is cheap to run but that's it...no bragging rights, looks battered and the seats are painful for longer trips but I'm not complaining.
VR99 said:
I had plans to spend abt £10k on a newer (used) car this yr but am rethinking it now as getting on the property ladder is my priority.
Fwiw my shed's value is ballpark just over 2% of my annual take home. It's does the A to B thing well and is cheap to run but that's it...no bragging rights, looks battered and the seats are painful for longer trips but I'm not complaining.
My current car is £600 lol. Kinda going with the view that I work hard enough to buy myself one expensive toy! Don’t do holidays and certainly not having kids!Fwiw my shed's value is ballpark just over 2% of my annual take home. It's does the A to B thing well and is cheap to run but that's it...no bragging rights, looks battered and the seats are painful for longer trips but I'm not complaining.
Bagzie88 said:
I think a percentage of your yearly income or whatever is irrelevant , in reality the only thing that matters is if you can afford it.
If you can then it's fine and if you can't it's a mistake , isn't it really that simple?
Yeah my car is worth the same as my gross yearly salary (admittedly I have a second self employed income that’s about an extra 50% on top). If you can then it's fine and if you can't it's a mistake , isn't it really that simple?
Most people find that ludicrous but the monthly combined cost for servicing, tyres, fuel, HP, insurance etc isn’t that bad.
MX6 said:
Interesting thread topic. I think the answer is no, it doesn't mean anything.
I'm sometimes a bit nosey and have a bit of interest in reading what people spend on cars, it can still surprise me at times.
I'd consider myself a petrolhead but have always been satisfied with cheap old cars bought with pocket money. My most expensive purchase to date was £2,250 on an Alfa 159. I'm currently running an X Type as a daily bought for £1,100.
At a stretch I could afford to buy the X Type out of one months disposable income if I chose not to spend on other things. To be honest I'd rather have a nicer house for my family than an expensive car, I've got a decent size 4 bed detached instead.
I'm absolutely with you here. I'm sometimes a bit nosey and have a bit of interest in reading what people spend on cars, it can still surprise me at times.
I'd consider myself a petrolhead but have always been satisfied with cheap old cars bought with pocket money. My most expensive purchase to date was £2,250 on an Alfa 159. I'm currently running an X Type as a daily bought for £1,100.
At a stretch I could afford to buy the X Type out of one months disposable income if I chose not to spend on other things. To be honest I'd rather have a nicer house for my family than an expensive car, I've got a decent size 4 bed detached instead.
I like cars as well but holidays and boats and good food and nice wine and investing for the grandkids among other stuff are all higher priority than cars for me and that's where most of my discretionary income goes and cheap old Jaguars are much more refined and comfortable than expensive new ones so that's what I have as well.
tobias11 said:
It took a bit of convincing but while we have no kids and huge commitments it seems like the right time to do it. Just got to get the house sorted first!
I’m assuming having those two cars you’re collectively earning more? (Don’t feel you have to answer! Cheeky question!)
If you buy the right car at the right price (theres the trick!) then you shouldnt lose much on it if you look after it. Probably no worse than depreciation on some new EuroBox. I’m assuming having those two cars you’re collectively earning more? (Don’t feel you have to answer! Cheeky question!)
Yes, we're out the other side of parenthood so its just the two of us. Decent jobs, not a big commute, no real financial worries.
Deep Thought said:
If you buy the right car at the right price (theres the trick!) then you shouldnt lose much on it if you look after it. Probably no worse than depreciation on some new EuroBox.
Yes, we're out the other side of parenthood so its just the two of us. Decent jobs, not a big commute, no real financial worries.
I’m the only one that has a big commute, 60 miles a day hence why I get to have the more enjoyable car! Luckily we’re both in the situation of not wanting kids so won’t have any other expenses bar the expenses for ourselves which leaves us with quite alot a month even after paying out for everything! Yes, we're out the other side of parenthood so its just the two of us. Decent jobs, not a big commute, no real financial worries.
Will be going for something around 40k miles so hoping to get a good deal on a 66 reg M2. The only thing that could change that is if the M2 comps drop in price abit lol
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