Fabioso

I saw some stats recently about what people earn (gross) and the amount they were prepared to spend on their car(s). If I remember rightly the average worked out at about 0.5 of their gross yearly income. I was quite surprised at how high that was. So for example, Mr A Dude earns £30k gross and so spends about £15k on his car..........that seemed very high to me.........what do you all think? I know there can be plenty of other factors involving inheritance, other income etc but whats a reasonable amount?

Fabioso

Before anyone notes the spelling mistake in the title, I just can't type

Sonic'

That seems very high

Or does that include thinks like servicing, repairs, MOT, TAX fuel etc

yoza

I know people who drive £60,000 cars/trucks yet live in caravans, as to what they earn per year, I dont know and neither do they.

Fabioso

Awwwww Lisa and now being the numpty I am, my second post reminds everyone that I can't type

Fabioso

The article seemed to be suggesting pure purchase price.....I mean, I would have thought even 0.3 was on the high side myself.......

mamoon2

So your saying that someone on an average of £30k a year should be spending £90 on a car?

Do you mean a percentage 0.3% or 30%

Lisawrx

iTrader: (1)

Believe me, I'm a numpty too, as I thought it hadn't worked, deleted my post on this thread, posted in policy, only to realise it had, and had to delete that post as well.

So don't feel too bad.

davyboy

No way would I spend 50k on a car.

Sonic'

I wouldnt spend 500 quid on a car

Fabioso

I realise everyone's financial priorities are different and that also relates to their age, aspirations etc......Personally would have thought about 0.2 was around the max for "most" people.

Simon 69

Because you cant trust people on an internet forum to be honest; the conclusions drawn are of little value...

hodgy0_2

as I said to Jenson Button just the other night

Deep Singh

So is this a way of telling everyone how much you earn? You've told us over on 'other marques' forum about your new car order.

On that thread you also told us how much it cost you. iirc it was circa £90k. Now you tell us you that you feel the correct % of earnings to car value is 0.2%, so hey presto you earn circa £500k per year.

Good income, but subtle you ain't

hodgy0_2

is it me or do the figures in this thread make no sense

Deep Singh

He is not talking percentages. Ie £90k divided by £450k = 0.2

hodgy0_2

it must be 0.5 = 50% of income (i think)

in which case I spend less than 10%

Bubba po

These figures are annoying me. When you say "spends 15k on a car", surely that's taking into account that most people keep the car for three years, which is a 5k per annum spend, not counting interest if the car's bought on finance. 15k is enough to buy a decent, well-specced saloon from a non-prestige brand, which (I would have thought) is well within the range of someone on a 30k salary.

Also, I agree with what Deep says.

fast bloke

can you quantify 'most people'?

I have had my car for 5 years - her indoors is at 4 years and 8 months - several people I know have had the same car for six years. I know some others that can only get through 18 months without an upgrade. In fact..... I don't know anyone who keeps their car for exactly 3 years. Have you stumbled upon a lost civilisation or summit?



p.s. - 5k doesn't include resale after the aforemetioned 1095 days..... If you are going to pick holes, can you try and pick them with something sharper than a big lump of carved timber?





p.p.s -

fast bloke

btw - I just bought another original GT40 for 0.00000000000000000001 of my income. Do I get a ***** waving prize as well as the Fabreze guy?

Sonic'

for the last probably 5 years I have bought a 'new' car each year, never spending more than about 500 quid for the car, resale about 200 quid (but this was always a second car)

my last real car purchase was this year and paid just over 5k cash, so no finance etc and it doesnt reflect my earnings at all

I have never in the history of owning cars spent 15k on a car and doubt I ever will
I just dont see the point in spending that much on a car that will depreciate so quickly

on the 3 year thing, my Bro and his Wife both change their cars every 3 years exactly for 2 more brand new ones

Jamescsti

Without going into any figures on car prices, wages etc, I personally am budgeting for about 30% of my basic annual wage for my next car. I earn quite a bit in overtime on top of my basic but that's a bonus, I wouldn't consider that for budgeting.

Trout

iTrader: (1)

Cool formula - off to check out the new Ferrari 438

Deep Singh

Nice one. Using the same formula I'm off to view a Lear Jet next week. Compared to us Fabiosa seems quite poor on just £450k per year.

Shall we send the guy a few quid?

Fabioso

no what I mean is 0.33 as about a third of your gross so £30k = £10k for car

Fabioso

I'll explain the figures so everyone gets it.........

Mr Smith earns £30k gross per year

1.0 would equate to £30k spent on a car
0.5 (like 1/2) would equate to £15k on a car
0.25 (like 1/4) would equate to £7.5 on a car
0.2 (like 1/5) would equate to £6k on a car

This is just the purchase price not spread over 3 years, 5 years or whatever.

Just as a ball park what feels right, I don;t want to start going into detailed analysis of ownership costs, your aunt lil's inheritance vs nursing fees.....etc

For people who wanted to work in percentages

50% is 50/100 which equals 1/2 which equals 0.5
25% is 25/100 which equals 1/4 which equals 0.25

if you don't understand that then I wouldn't worry about it

I however don't get some of the posts above because I said earnign £30k and therefore spending £6k on a car sounded about right to me.

Sonic'

It wont really add up or make much sense anyway as a per annum cost if its an outright purchase

It wouldnt make any difference if joe bloggs earnt 30k a year and bought a car for 30k (he could pay it off over 10 years etc)

I dont know many people who buy a new car every year

I bought a different car roughly once a year at a cost of around 500 quid per car as it meant I could change them easily, i could sell on the old one and it would save mot costs & bills

mamoon2

I'd say 0.2 would be about right. I personally cant justlfy spening over 12k on a car although i'd love to get myself an RS4, its money best spent elsewhere

yoza

This thread has lost me, Im not the sharpest tool in the box, but FFS.

Here is how I buy my cars, or my last one or two at least.

A: Hello Max, whats the least amount of cash I can put down to drive that car out now ?

B: You will kill yourself in it...

A: Never mind that, how much.

B: That will be £$%*% now, and £ $%& for the next 60 months.

A: Where do I sign.

I make sure I can afford the repayments, and Max tells me I must have FullyComp insurance and sells me a gap plan, I dont know what a gap plan is but I trust him like a member of the family.

If I cant afford it (which has never happened, even when Ive been out of full time employment) the car would go back.

Is this so wrong ?

Fabioso

I give up....................... you are spot on.............