Car cost vs income - how do people do it?
Discussion
Hi,
I’m not underpaid by any means, and when I started in my profession one of the things I looked forward to was being able to purchase nicer cars once I had become established and experienced with the associated remuneration.
The Covid response packages saw to it that cars (and other goods) shot up in price both new and second hand, out stripping the salary increases of many.
Where or who are affording these 50 plus k cars these days which were previously 20 to 30 k to buy? Eg 5 series, 3 series, A6, A5, performance m sport models (not full on m cars obv) etc etc I ask because relatively speaking in terms of price vs salary these cars are almost as far away from me now as they were ten years ago, but I’m well above the average income (almost into the band losing tax free allowances and based in north west).
I’m not underpaid by any means, and when I started in my profession one of the things I looked forward to was being able to purchase nicer cars once I had become established and experienced with the associated remuneration.
The Covid response packages saw to it that cars (and other goods) shot up in price both new and second hand, out stripping the salary increases of many.
Where or who are affording these 50 plus k cars these days which were previously 20 to 30 k to buy? Eg 5 series, 3 series, A6, A5, performance m sport models (not full on m cars obv) etc etc I ask because relatively speaking in terms of price vs salary these cars are almost as far away from me now as they were ten years ago, but I’m well above the average income (almost into the band losing tax free allowances and based in north west).
DickP said:
Hi,
I m not underpaid by any means, and when I started in my profession one of the things I looked forward to was being able to purchase nicer cars once I had become established and experienced with the associated remuneration.
The Covid response packages saw to it that cars (and other goods) shot up in price both new and second hand, out stripping the salary increases of many.
Where or who are affording these 50 plus k cars these days which were previously 20 to 30 k to buy? Eg 5 series, 3 series, A6, A5, performance m sport models (not full on m cars obv) etc etc I ask because relatively speaking in terms of price vs salary these cars are almost as far away from me now as they were ten years ago, but I m well above the average income (almost into the band losing tax free allowances and based in north west).
I ask myself the same question with every £70k Defender that drives past. I have a decent wage as does my wife, we can't afford them.I m not underpaid by any means, and when I started in my profession one of the things I looked forward to was being able to purchase nicer cars once I had become established and experienced with the associated remuneration.
The Covid response packages saw to it that cars (and other goods) shot up in price both new and second hand, out stripping the salary increases of many.
Where or who are affording these 50 plus k cars these days which were previously 20 to 30 k to buy? Eg 5 series, 3 series, A6, A5, performance m sport models (not full on m cars obv) etc etc I ask because relatively speaking in terms of price vs salary these cars are almost as far away from me now as they were ten years ago, but I m well above the average income (almost into the band losing tax free allowances and based in north west).
It's finance for many. I very much doubt that people who are chopping cars in every 3 years are buying them outright, sucking up the depreciation and then stumping up the cash for the next one.
Personally it's not for me although I can understand if someone has £300+ as disposable income per month then a PCP or lease may work well for them. It's not my thing but then I've not bought a brand new or even nearly new car in 16 years.
Personally it's not for me although I can understand if someone has £300+ as disposable income per month then a PCP or lease may work well for them. It's not my thing but then I've not bought a brand new or even nearly new car in 16 years.
Dannbodge said:
Because most people that have all the nice things are in debt up to their eyeballs.
They really arent,Some will be, no doubt, but the other reasons for nice cars can be.
Pension lump sum
Inheritance/gift
Lottery or other gambling win
Good salary
Salary Sacrifice
Profit on Shares or other assets
Downsizing home releasing cash
Criminality
OnlyFans/Youtube/Instagram
Tax evasion/Cash business/Money Laundering.
Owns own company
Sold own company
Clubbed together with friends and family
PIP
And also, saved up for years and finally bough dream car
Its very easy to see things from your own position, working hard, being prudent and not understanding how others, who seem to make less effort manage to have really nice things. Can be frustrating but basically just keep doing what you are doing and things will happen, feels like thats if forever, its not.
Some folk actively buy cars to get rid of cash, told to spend by their accountants.
Dannbodge said:
Because most people that have all the nice things are in debt up to their eyeballs.
If you are in a secure vanilla job - healthcare professional, local Government, utilities etc, then a mumflie payment for a brand new reliable car to get to work is a good option. It doesn't mean you are up to your eyeballs. The fact that you can get credit suggests good credit management/utilisation.Phateuk said:
Here we go again...
This is mainly a car forum, so things like these will be repeated.From a quick bit of work looking it up.
If we take a BMW 320i
in 2015 they cost £28-30k
in 2026 they cost £41k
£30k just from inflation is now £42k
So while the ticket price has increased, in theory our salaries have also increased, so it really the same sort of cost.
As others have said no one (very few) will walk into a BMW main dealer and put down £42k and buy a 320i outright. £494 per month and £5k down is how it will be done. which is still £28k over 4 years. Which to me is a bit mad, not lease as you don't have a car at the end of it and you can buy a much nicer car second hand for £28k than a 320i.
But each to their own.
If we take a BMW 320i
in 2015 they cost £28-30k
in 2026 they cost £41k
£30k just from inflation is now £42k
So while the ticket price has increased, in theory our salaries have also increased, so it really the same sort of cost.
As others have said no one (very few) will walk into a BMW main dealer and put down £42k and buy a 320i outright. £494 per month and £5k down is how it will be done. which is still £28k over 4 years. Which to me is a bit mad, not lease as you don't have a car at the end of it and you can buy a much nicer car second hand for £28k than a 320i.
But each to their own.
Also, you could easily be getting a big chunk of the monthly lease paid for by a work company car scheme, on top of any other salary sacrifice assistance.
Sometimes cheap cars are surprisingly expensive, back in the day I did the sensible thing and bought a 3yr old Volvo and ran it for 6 years, by which time it was 'worthless'. I did the sums and the overall cost of depreciation and a few repairs over the years was the same monthly average as it cost me to lease a brand new Volvo a couple of years later.
Sometimes cheap cars are surprisingly expensive, back in the day I did the sensible thing and bought a 3yr old Volvo and ran it for 6 years, by which time it was 'worthless'. I did the sums and the overall cost of depreciation and a few repairs over the years was the same monthly average as it cost me to lease a brand new Volvo a couple of years later.
I sometimes ask myself that too and it's not just cars... it's holidays, eating out constantly, new sofas, hot tub in the garden, summer houses or dripping in designer gear. And I don't mean your average PH frequenter on £250k a year with a property portfolio, I mean just your average family with kids. I sometimes mentally add up the monthly costs and just can't figure it out. Maybe it's OnlyFans or they have compromising pictures of the CEO or similar. That or j need to accept debt is just how life is and jump on the bandwagon. Who knows.
MDT said:
£30k just from inflation is now £42k
So while the ticket price has increased, in theory our salaries have also increased, so it really the same sort of cost.
Inflation is calculated on a basket of products including new cars, so of course the price of new cars seems to have increased in line with inflation. They are the CAUSE of inflation.So while the ticket price has increased, in theory our salaries have also increased, so it really the same sort of cost.
You're measuring the measure. No wonder the results match!
Better to compare price against average salary.
Davie said:
I sometimes ask myself that too and it's not just cars... it's holidays, eating out constantly, new sofas, hot tub in the garden, summer houses or dripping in designer gear. And I don't mean your average PH frequenter on £250k a year with a property portfolio, I mean just your average family with kids. I sometimes mentally add up the monthly costs and just can't figure it out. Maybe it's OnlyFans or they have compromising pictures of the CEO or similar. That or j need to accept debt is just how life is and jump on the bandwagon. Who knows.
I sometimes have thought this but you dont notice all the folk who arent out, struggling to get by, eating beans on toast and barely keeping afloat, its the obvious displays of wealth that you notice.I have been skint for years, driving a scabby 1.0 Metro to work, and am now fairly comfortable, not PH comfortable but cant complain, generally doesnt happen overnight, just have to keep plugging away, kids become independent and you realise there isnt too much month at the end of the money for the first time in years.
As said above, don't underestimate the number of people sitting on real money from things like an inheritance.
Some parents at our kids school (who don't earn much in their own right) have recently inherited £2m. They're just normal middle class people whose parents happened to buy a cheap house in London that then rose considerably in value.
Some parents at our kids school (who don't earn much in their own right) have recently inherited £2m. They're just normal middle class people whose parents happened to buy a cheap house in London that then rose considerably in value.
Davie said:
I sometimes ask myself that too and it's not just cars... it's holidays, eating out constantly, new sofas, hot tub in the garden, summer houses or dripping in designer gear. And I don't mean your average PH frequenter on £250k a year with a property portfolio, I mean just your average family with kids. I sometimes mentally add up the monthly costs and just can't figure it out. Maybe it's OnlyFans or they have compromising pictures of the CEO or similar. That or j need to accept debt is just how life is and jump on the bandwagon. Who knows.
A couple both with decent jobs each earning £50k and the combined income of £100k will give a good lifestyle especially if they live Oop Nurf and kept the same 3 bed house they first moved in to. FA57REN said:
Inflation is calculated on a basket of products including new cars, so of course the price of new cars seems to have increased in line with inflation. They are the CAUSE of inflation.
You're measuring the measure. No wonder the results match!
Better to compare price against average salary.
Ha, You're measuring the measure. No wonder the results match!
Better to compare price against average salary.
Mean Salary in 2015 - £32k
Mean Salary in 2026 - £43k
so in short a 320i is a years salary.... who would spend a years salary (pre tax) on a car.
A mate of mine who is a mortgage advisor told me how difficult it is to get mortgage for younger people these day ( under 35 ish ) as they have so so much debt. Cars, phones, furniture, holidays, teeth, hair all on drip. One or two missed payments will also wreck their credit rating. They have new cars etc etc but are living with very little actual spare cash - it’s all for show . I couldn’t live like that but I’m in the older age bracket .
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