akshay67

I was just reading a thread over in the other marques board and saw a post suggesting that spending to the amount of your annual take home (i.e. after tax, NI etc) on a new car is about the norm.

This probably won't be do-able for a lot of people because of overheads such as loans, mortgages, schooling fees for kids etc.

Hence what I can spend on a car is probably about 20% of my annual take home!

What's your story?

Mr Scrooge

Ooh No, No, No - you've got to watch them pennies!!

Save for a rainy day & all that.

Keep your money, just borrow friends & families cars, get a job with a company car, etc.

Mr SCROOGE

R 14NS R

how do people do that, my car was about 25% of my annual wage and as it seems with everyone i speak to, after paying bills, car tax, car insurance, car finance, mods and petrol, come week three of four of the month no-one has any money left.

Petem95

Cars are expensive to run, my annual costs are:

Fuel £1500
Insurance £680
Tax £165
Servicing + consumables £500

Total = £2845 (~£240/month :eek)

So over 10% of my takehome, and thats not including depreciation!!!

The Snug Rhino

would never spend more than 25% of my net years income on a car and replace it ever 2- 3 years....so its actually less than that.....ie. 25% of income spent buying car year one......only running costs year two and three then 25% spent on a new car again..........so its prob less than 15% net income even if you add in running costs (on average)

should add....ignore depeciation in that and the car price is the sticker price....not after i trde in my old car.

ie- if i have a £20k trade in i wouldnt go buy a £50k car as its only £30k so fits in my budget...............i would only buy a £50k if i netted £200k and thats not a normal year.

Spec'c'57

iTrader: (1)

spent 75% on mine.... still its paid for now.... but that was working up so only added 7k towards the spec'c' from the tuscan...

sti-04!!

Not much

The Snug Rhino

sensible, makes a change then from these people blowing their pay packet on their transport.

Dunk

iTrader: (1)

Cars are an enjoyable waste of cash. Which why I currently have four (with one to sell). My new (to me) daily driver cost 10% of last yrs net, the three I'll be left with will be worth 17%.

D (Who hates spending dosh on cars)

AudiLover

200% of my annual income if I didnt have anything else to pay for.

Petem95

I think he's implying his pay packet is rather large, hence the percentage spent on transport isnt significant...

sti-04!!

I do drive a 9 month old E320 Cdi though, so sensible in the fact that it doesnt cost me much to own or run.

sti-04!!

Salary isnt 3 figures yet but quite close to it

The Snug Rhino

"Salary isnt 3 figures yet but quite close to it"

seems not.

logiclee

Usually around 30% for me, I earn £45k.

I do change every year though.

Cheers
Lee

Luan Pra bang

I earn 12k a year and spent 25k on cars this year .

Think I need a new calculator.

Andy M3

You people earn far too much

Deep Singh

When I was 26 ish I spent over one years net salary on a car. And similar over the next few years. 8 years later(ahem) I spent the same amount but my salary has multiplied by a factor of six ( inc my wifes that is). Go figure, you get older and wiser I suppose.

SiDHEaD

Mine are £500/mo for the car and £130/mo for insurance. I dont drive it loads in the week so don't have huge fuel costs.

It's ok cos thats not much of my takehome And i live at home, so no rent or other bills!

Jamescsti

The most I have ever spent is 90% when I was 18 and had no other bills etc.
My current car cost about 10% of my annual wage

Andy M3

Do you mean the RRP of your current car is 10% of your annual wage, or the costs involved in keeping the car [i.e pence per mile] is 10% of your annual wage ?

Jamescsti

What I paid for the car is 10% of my annual wage, don't know what the cost of keeping the car is, though it's not massive as it's a mondeo TDCi

Suresh

We bought two new cars a couple of years back and the net purchase price was also about 20% our take home for that year - after taking the trade-in values of our previous cars into account. We won't be keeping the cars longer than 4 years, so the trade-in values will still amount to something for the next time.

john banks

Just changed our cars. I spent 40% of my annual net on mine, and the wife spent 90% of her annual net on hers/the long distance car. But then we'll probably not change them again for five or so years as mine is 6 months old, hers is new. Both from savings.

pwhittle

about 20% for mine, though we have 2 cars on one wage so effectively doubling that.
I heard years ago that foorballers spent on average 80% of their gross income. Must have been a while ago, you can't get cars that expensive now...

(I'm getting more socialist as I get older - top footballers (talented as they are) earn silly amounts (4x the national annual average per week is pretty silly), while most of the population earn sod all doing jobs we hate)

pwhittle

How's the TDCI? off to look at some tomorrow

Peanuts

iTrader: (15)

I spent 40% of my net on the first scoob, I spent 25% of my monthly net on the daily hack and I spent about 7% annual net on the 2nd scoob.