At what point are you affluent enough to buy a supercar?

At what point are you affluent enough to buy a supercar?

Author
Discussion

Eatpies99

95 posts

38 months

Monday 7th November
quotequote all
Man of gas said:
Wow, that’s a very refreshing post and gives me hope for the future. I earn more than 3 times your salary yet am nowhere near being able to trade in my 10 year old XKR for a Mclaren 570/720 that I have been dreaming of for the last few years.I am presuming you don’t have the same level of family outgoings that I do but even so I salute your pistonheads credentials
You only live once my friend. Oh believe me I have a family of sponges bleeding me dry haha. I guess I'm not fancy guy. Don't drink. Smoke. Gamble. Always been about some kind of motor vehicle. I have 2 superbikes too.
The way I see it. On my death bed I'll tell stories of all the stupid cars and bikes I've had, rather then some kind of stock and share investment smile but that's me. Every person is different.

Soleith

285 posts

73 months

Monday 7th November
quotequote all
andrew said:
Soleith said:
S&P average long term annualised is 11.8%.!
the s&p has never returned anything like 11.8% long term !!!

https://www.google.com/finance/quote/.INX:INDEXSP?...
Lol, I assume you know this doesn't include dividends right?

andrew

9,599 posts

176 months

Monday 7th November
quotequote all
Soleith said:
andrew said:
Soleith said:
S&P average long term annualised is 11.8%.!
the s&p has never returned anything like 11.8% long term !!!

https://www.google.com/finance/quote/.INX:INDEXSP?...
Lol, I assume you know this doesn't include dividends right?
absolutely !

Soleith

285 posts

73 months

Monday 7th November
quotequote all
DeejRC said:
Is there really a need to call ppl salty? Or gripe n snipe about how one does finance or rates or beats the market or doesn’t?

The majority of us in this sub forum are owners of the more high end high end automotive exotica. Some are multiple owners. It isn’t the Golf R forum.
So it’s fair to say the majority have probably made a little cash along the way somehow. That’s all it needs to be, we haven’t got to be wkers about it.
Op posted a genuine question which as is frequently the case in this section descends into a finance or not finance discussion. Why advise them not to get a car they want and can afford because it doesn't fit with someone's worldview of finance = evil? I'd suggest the wkers are people who say if you finance you can't afford it. If people decide to pay cash of course that's their right, but if interest rates are low enough there's no point not to finance and any other view is one borne of ignorance. All imho ofc XD

Soleith

285 posts

73 months

Monday 7th November
quotequote all
andrew said:
Soleith said:
andrew said:
Soleith said:
S&P average long term annualised is 11.8%.!
the s&p has never returned anything like 11.8% long term !!!

https://www.google.com/finance/quote/.INX:INDEXSP?...
Lol, I assume you know this doesn't include dividends right?
absolutely !
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

Even in more recent years it still beats a lot of finance rates, even if you include 2008!

garystoybox

622 posts

101 months

Monday 7th November
quotequote all
Soleith said:
https://www.investopedia.com/ask/answers/042415/wh...

Even in more recent years it still beats a lot of finance rates, even if you include 2008!
Sorry, I can’t be bothered to give a full response to why people often kid themselves re investment returns outperforming interest rates on cars (spend all day talking investments and this is down time). I’ll just say I’ve spent the last 27 years building a solid reputation, building an investment company managing significant portfolios for clients. A good performing indices like the S&P has probably performed c6% above inflation over the very long term but these assumptions assume you can access with zero charges, with tax free returns. Why not quote the returns on the FTSE 100 over the last 22 years - certainly will paint a different picture. I.e. people always quote the retrospective best returns with the benefit of hind-site, and assume you put all your money in that one area.

Quite right, dividends will make a big difference, particularly in the very long term (20 years plus). Also worth looking up how many S&P 500 companies don’t pay any dividends- quite a few. Also you have to consider the opportunity cost of servicing the debt. £1k a month interest payments could be money put to better use elsewhere. I.e. saving monthly in the markets, benefitting from pound cost averaging.
Still remember early on when bagging my first huge client- his mantra was that there is ‘nothing as cheap as your own money’ (zero rate finance offers aside). Didn’t really agree with him at first, but my view has changed over the years. If it was that easy to make money then we’d all be taking out maxed mortgages on our homes to invest in the markets, which is just madness or reckless, particularly with the days of free money behind us.

Soleith

285 posts

73 months

Tuesday 8th November
quotequote all
garystoybox said:
Soleith said:
https://www.investopedia.com/ask/answers/042415/wh...

Even in more recent years it still beats a lot of finance rates, even if you include 2008!
Sorry, I can’t be bothered to give a full response to why people often kid themselves re investment returns outperforming interest rates on cars (spend all day talking investments and this is down time). I’ll just say I’ve spent the last 27 years building a solid reputation, building an investment company managing significant portfolios for clients. A good performing indices like the S&P has probably performed c6% above inflation over the very long term but these assumptions assume you can access with zero charges, with tax free returns. Why not quote the returns on the FTSE 100 over the last 22 years - certainly will paint a different picture. I.e. people always quote the retrospective best returns with the benefit of hind-site, and assume you put all your money in that one area.

Quite right, dividends will make a big difference, particularly in the very long term (20 years plus). Also worth looking up how many S&P 500 companies don’t pay any dividends- quite a few. Also you have to consider the opportunity cost of servicing the debt. £1k a month interest payments could be money put to better use elsewhere. I.e. saving monthly in the markets, benefitting from pound cost averaging.
Still remember early on when bagging my first huge client- his mantra was that there is ‘nothing as cheap as your own money’ (zero rate finance offers aside). Didn’t really agree with him at first, but my view has changed over the years. If it was that easy to make money then we’d all be taking out maxed mortgages on our homes to invest in the markets, which is just madness or reckless, particularly with the days of free money behind us.
Yes the FTSE ofc underperforms the S&P. At the same time, a lot of people I know, including one of my portfolio managers have maxed out their mortgage while interest rates were low to keep in the market. The problem with a lot of traditional investment managers is they only look at traditional securities. It doesn't take a lot of imagination to outperform the ftse, particularly when you consider smaller cap companies.

But we're getting off topic again, the point is that if OP can afford a deposit and a monthly, s/he is affluent enough to buy a supercar.

rawenghey

Original Poster:

69 posts

5 months

Tuesday 8th November
quotequote all
Man of gas said:
Wow, that’s a very refreshing post and gives me hope for the future. I earn more than 3 times your salary yet am nowhere near being able to trade in my 10 year old XKR for a Mclaren 570/720 that I have been dreaming of for the last few years.I am presuming you don’t have the same level of family outgoings that I do but even so I salute your pistonheads credentials
Wow, 300 grand is a big income man. Sounds like you have kids or an expensive (ex)misses laugh

Man of gas

134 posts

111 months

Tuesday 8th November
quotequote all
rawenghey said:
Man of gas said:
Wow, that’s a very refreshing post and gives me hope for the future. I earn more than 3 times your salary yet am nowhere near being able to trade in my 10 year old XKR for a Mclaren 570/720 that I have been dreaming of for the last few years.I am presuming you don’t have the same level of family outgoings that I do but even so I salute your pistonheads credentials
Wow, 300 grand is a big income man. Sounds like you have kids or an expensive (ex)misses laugh
Yes, you could say that! My latest purchase last weekend has just pushed my dream even further away however I can’t think of a nicer experience than seeing the joy in my 17year old daughter’s face when we bought her first car

okgo

34,521 posts

182 months

Tuesday 8th November
quotequote all
The truth is MoG that if I remember correctly - you live near me - your costs are probably way beyond what many think assuming you haven’t lived in the house for decades and you’re probably far more risk averse than many others. If I was really nervous about a big bill I’d be questioning whether it was the right move, personally.

The reality is that every house that’s been bought in the last 10 years around here ‘could’ have a mclaren if they wanted because the houses are all well into 7 figures. The fact I can think of two such cars off abbeville rd, almost none off Northcote or in the triangle over your way indicates that people are more likely wired like you (and I) than not. Nothing wrong with that of course.

My nursery just jacked up the price to 25k p-a NET for one kid, the one in Clapham I considered is joe £30k. That from this thread is easily a super car with a lump down. It would be half that in the north. If that.

Harris_I

3,183 posts

243 months

Tuesday 8th November
quotequote all
Soleith said:
and any other view is one borne of ignorance
You sound like a reasonable person.

ANOpax

670 posts

150 months

Tuesday 8th November
quotequote all
Man of gas said:
Yes, you could say that! My latest purchase last weekend has just pushed my dream even further away however I can’t think of a nicer experience than seeing the joy in my 17year old daughter’s face when we bought her first car
biggrin you’re a soft touch (or else we’re slave drivers). We made our son work and save for his first car (okay - we bought the alloys and tyres as a birthday present).


Alexandra

313 posts

176 months

Tuesday 8th November
quotequote all
Soleith said:
If people decide to pay cash of course that's their right, but if interest rates are low enough there's no point not to finance and any other view is one borne of ignorance. All imho ofc XD
That's slightly offensive bearing in mind you have no idea why I or others pay upfront.

DeejRC

4,340 posts

66 months

Tuesday 8th November
quotequote all
I live in reverse to some of you. I have to buy the old ppl their run arounds!

supersport

3,657 posts

211 months

Tuesday 8th November
quotequote all
DeejRC said:
I live in reverse to some of you. I have to buy the old ppl their run arounds!
hehe


rat rod

4,515 posts

49 months

Tuesday 8th November
quotequote all
Man of gas said:
Yes, you could say that! My latest purchase last weekend has just pushed my dream even further away however I can’t think of a nicer experience than seeing the joy in my 17year old daughter’s face when we bought her first car
Now that look on their face overweighs anything else even treating ourselves a new toy,

nothing comes close ,had to do that three times ,if you do it for one you have to do it for the rest,

hope you don't have to larger family ,every time watching your dream car getting further away.

Always felt less guilty when indullging myself after treating them ,don't know why ,i think it's called being a parent.rolleyes

Davyt

70 posts

2 months

Tuesday 8th November
quotequote all
Just upgraded my son from a Corsa to an A Class, worth it just to see the smile on his little face smile
That’s it now though I’ve told him !! ( why don’t I believe that ?)

Man of gas

134 posts

111 months

Tuesday 8th November
quotequote all
okgo said:
The truth is MoG that if I remember correctly - you live near me - your costs are probably way beyond what many think assuming you haven’t lived in the house for decades and you’re probably far more risk averse than many others. If I was really nervous about a big bill I’d be questioning whether it was the right move, personally.

The reality is that every house that’s been bought in the last 10 years around here ‘could’ have a mclaren if they wanted because the houses are all well into 7 figures. The fact I can think of two such cars off abbeville rd, almost none off Northcote or in the triangle over your way indicates that people are more likely wired like you (and I) than not. Nothing wrong with that of course.

My nursery just jacked up the price to 25k p-a NET for one kid, the one in Clapham I considered is joe £30k. That from this thread is easily a super car with a lump down. It would be half that in the north. If that.
Totally agree, I have owned my house for 15 years so actually the main issue is the double set of school fees. There is nothing like knowing that your kids happiness and stability is dependent on finding the cost of a brand new car every 12 weeks to stop you doing something silly with your cash. Anyway, number 1 will be going to university soon so there is light at the end of the tunnel!

Man of gas

134 posts

111 months

Tuesday 8th November
quotequote all
rat rod said:
Now that look on their face overweighs anything else even treating ourselves a new toy,

nothing comes close ,had to do that three times ,if you do it for one you have to do it for the rest,

hope you don't have to larger family ,every time watching your dream car getting further away.

Always felt less guilty when indullging myself after treating them ,don't know why ,i think it's called being a parent.rolleyes
Luckily only 2 kids and the youngest is 10 so I do have some time to save up again!

jm8403

1,331 posts

9 months

Thursday 10th November
quotequote all
Eatpies99 said:
What an interesting thread. For comparison to some posts here....
I bought my 458 in January. £135k. I earn less then £100k. It costs me about £1000 a month. I don't invest any money other then my pension. But man I love driving that car.....
  1. pistonhead
How does it cost that? How much deposit is that if you don't mind?