Appropriate salary to buy a Supercar
Discussion
This is the flip side of the other salary question running at the moment, asking how much you need to be happy, as there seemed a bit of a mis-match between the average earnings and the value of the cars that posters have.
So, looking at things in the other direction, and forgetting the occasional outlier who lives in a bedsit and borrows five years' salary to buy one, what would people think would be the low-end salary for buying a lightly used £200k sports car such as a 720s Spider, or a pre-reg M5 at £80k.
I'd have thought that no-one would look at the McLaren (again, other than the odd (very odd) person who'll risk everything and only just scrape together the monthly payments) unless they were on £300k+, but are there people buying them on £100k per year and just accepting that nearly half of their significant post-tax income will go on depreciation and running costs? Again, the salaries that people mention, and the cars that they have suggest that I'm possibly way off on my estimates.
By comparison, I was relatively well paid in my 20s (graduate in an investment bank) on £35k (a long time ago) and despite having few expensive tastes, and a modest flat to live in, still wasn't comfortable spending more than £15k on my first Elise.
So, looking at things in the other direction, and forgetting the occasional outlier who lives in a bedsit and borrows five years' salary to buy one, what would people think would be the low-end salary for buying a lightly used £200k sports car such as a 720s Spider, or a pre-reg M5 at £80k.
I'd have thought that no-one would look at the McLaren (again, other than the odd (very odd) person who'll risk everything and only just scrape together the monthly payments) unless they were on £300k+, but are there people buying them on £100k per year and just accepting that nearly half of their significant post-tax income will go on depreciation and running costs? Again, the salaries that people mention, and the cars that they have suggest that I'm possibly way off on my estimates.
By comparison, I was relatively well paid in my 20s (graduate in an investment bank) on £35k (a long time ago) and despite having few expensive tastes, and a modest flat to live in, still wasn't comfortable spending more than £15k on my first Elise.
Darth Paul said:
When I went to shelsley Walsh for the super car event last year I was surprised by how many mclarens were there. When I got back a quick google showed what the pcp deals where. Quite reasonable in the scheme of things. Still way above my pay grade, but I can imagine a fair few 6 figure salary types could easily afford it. The deposit is probably 1 to 1 1/2 yearly bonus, and the monthly’s are within reach, particularly if you’ve no mortgage.
If the six figures was £600k then it seems pretty reasonable, but if £100k then surely it’s a stretch.bristolbaron said:
I don’t think salary comes into it as much as net worth. Being able to make the payments and being comfortable losing £70k over three years are very different things!
I tend to look only at the cost of ownership, not upfront cost, and can't see me enjoying any car enough to be worth dropping that sort of amount in a couple of years.StevieBee said:
Very much this!
Dividends, bonuses investments, sale of business, inheritance..... I can't think of any profession that would afford a basic salary to a level that would enable the purchase (and running) of a supercar without requiring the owner to live in the car itself.
I work in a bank, so nearly all the people I know with high-end cars are funding them from salary.Dividends, bonuses investments, sale of business, inheritance..... I can't think of any profession that would afford a basic salary to a level that would enable the purchase (and running) of a supercar without requiring the owner to live in the car itself.
StevieBee said:
There may be a few.
Don't forget that we're talking 'salary' or 'wages'... regular payments of earnings from which all tax has been deducted. But a salary is a very inefficient way to be paid which for most of us mere mortals is not a big issue but when you start earning big, there's more efficient ways to get your money - dividends being amongst the most efficient.
But in a lot of businesses, this just isn't an option.Don't forget that we're talking 'salary' or 'wages'... regular payments of earnings from which all tax has been deducted. But a salary is a very inefficient way to be paid which for most of us mere mortals is not a big issue but when you start earning big, there's more efficient ways to get your money - dividends being amongst the most efficient.
Despite what it seems many people think, money in banking is paid via PAYE, with all the tax due taken at source. There are no clever tricks such as being paid in gold, or wine, to get around it.
We do tend to get a chunk of the money in stocks, but this is far worse than just getting cash, so is the opposite of a tax dodge.
For a long time I ran only one car, and tried to stick to a rule of never spending more than 10% of my wage on one.
As I’ve got a bit older that rule’s slipped, but I do feel a sense of relief at having decided to drop down now to only having two, and so reducing the expenses.
I won’t go back to only one, as I do want a family car and a sports car, and as per my posts in the McLaren forum, I’ve just decided that at £90k a low mileage 650s may not be a complete financial disaster.
As I’ve got a bit older that rule’s slipped, but I do feel a sense of relief at having decided to drop down now to only having two, and so reducing the expenses.
I won’t go back to only one, as I do want a family car and a sports car, and as per my posts in the McLaren forum, I’ve just decided that at £90k a low mileage 650s may not be a complete financial disaster.
BrundanBianchi said:
Quite right. A big shouty pantomime horse super car is the epitome of the difference between money and wealth. Money shouts, wealth whispers.
The comment that has been made previously seems to apply here. If you think that the higher-end cars are ridiculous then it’s strange that you are on a car enthusiast’s site.Super cars and sports cars are designed around fulfilling a purpose, one that it costs a lot of money to do very well.
Do you really have no interest in owning and driving cars where the budget allowed so few compromises to need to be made?
jontysafe said:
Haha, hadn’t thought of it like that! Not sure my kids would appreciate me selling part of the garden for housing development to keep them at private school either.
I had a very happy childhood, but like nearly everyone in my town it was not a wealthy one. Holidays were in a touring caravan that we borrowed, and my dad had no choice but to maintain his own car, which he had to do a lot.I’ve no idea how to have my children have a similar lifestyle, how to make sure that they stay grounded, as the nature of my job and how I have to work means that we just can’t function the same way.
Paul MCartney apparently moved back into a council house when his son was born, I can’t see us doing that, but there’s definitely a temptation to move to a farm in the Pyrenees from where they can cycle to school.
StevieBee said:
Mmm. I have known over the years a very small number of seriously wealthy people. One recently sold one of his companies that put over £40m in his pocket. I worked for another in the 90s who's wealth was at a similar level. Something that was common to all is that there was nothing about them or their material items that would outwardly suggest such level of wealth. In fact, in some cases quite the opposite and to a level that begs the question... why bother?
I'm sure there are some who are ostentatious but in my experience, the 'Money Shouts, Wealth Whispers' statement holds true.
This is an example of the toupee fallacy and also, as pointed out above, you’ve not said what you think is the difference between money and wealth.I'm sure there are some who are ostentatious but in my experience, the 'Money Shouts, Wealth Whispers' statement holds true.
BrundanBianchi said:
The difference is easy to quantify. If you walk into a fancy emporium of whatever you like, and there’s a shouty person enquiring about whatever that emporium specialises in, then asks “how much is it” that’s money, if they see what they want, and purchase it without even enquiring about the price, that’s wealth. The ‘money’ person usually takes photo’s of it as well, and not for insurance purposes. The quintessential ‘money monkey’ will ( for example ) ‘buy’ ( rent is more usual ) a ‘high end car’ and kick off, right Royally if the red carpet isn’t rolled out, and a bunch of flowers, and a gigantic bow, aren’t provided when they pick up their new rental.
So then it’s just a phrase that people use who want to be snobbish.BrundanBianchi said:
I also know of one or two individuals who have some significant wealth, and are proper petrol heads, who will scour important auctions ( the Barrett-Jackson for example ) for some serious metal, or other auctions for serious metal, and you’ll only see them at historic racing events, and controlled demo events / concours d’elegance. They would drive a car which wouldn’t draw attention to them day to day.
These people that you know, do they tip well when you deliver their large Hawaiian with wedges?Thankyou4calling said:
You’d have to be absolutely top drawer in some of those positions to be earning £100k.
Granted you can but the average in those roles won’t be in my opinion .
Not at the bottom of the scale I’d say, but not right at the top either. Some GPs are on over £150k, but yes, it’s high-ish for a head teacher.Granted you can but the average in those roles won’t be in my opinion .
CornishRob said:
If you think super cars will be expensive to own and run, think about who affords to own and run boats/yachts/super yachts.
That’s a fuel bill...
I looked into hiring a sun seeker for a week. Nothing big (for a yacht), four big cabins, dining room, sun deck, the thing you see in Poole Barbour, not Monaco. That’s a fuel bill...
£25k for a week, £18k to fill with fuel, which likely got you two days cruising. 10% tip, minimum, for the crew. Plus transfers, food, drink, docking fees.
To take my parents, two siblings, for a week on a posh but small-ish boat that could see a few towns in the Med was at least £60,000.
We went to Seahouses instead.
bennno said:
We manufacture luxury travel luggage and have a second business providing airport lounge services.
Why don’t more airports have a service like Privium at Schiphol? It’s absolutely brilliant, nice lounge, one airside one not, and the fast track for security (and no need for passports) is just fantastic.I can’t understand why other lounge operators don’t do this in other airports.
djc206 said:
I still think you’ve totally missed my point which is that they are slightly obnoxious. That’s why I sarcastically said endear rather than impress.
I don’t think that a car can really be obnoxious. Owners can, but not the cars themselves.The SVR is designed to do a couple of things very well, and I think that it’s quite a fun approach to the design brief.
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