How much is too much?
Discussion
.....money spent on a buying a car.
I know people who have spent almost 100% of their yearly salary on buying a car. I know some who spent only 5% of their yearly salary on a car.
How much would you say is too much? If you're holding down a fairly decent job that pays say £30k per year how much of that would you spend on buying a car?
I was quite surprised to recently learn that a colleague of mine who is on a temporary promotion (covering materninty leave) has spent £20k on a Audi A3 when her gross salary is £30k. For me that was too much but it doesn't seem to have affected her lifestyle in one bit.
I know people who have spent almost 100% of their yearly salary on buying a car. I know some who spent only 5% of their yearly salary on a car.
How much would you say is too much? If you're holding down a fairly decent job that pays say £30k per year how much of that would you spend on buying a car?
I was quite surprised to recently learn that a colleague of mine who is on a temporary promotion (covering materninty leave) has spent £20k on a Audi A3 when her gross salary is £30k. For me that was too much but it doesn't seem to have affected her lifestyle in one bit.
volvoforlife said:
.....money spent on a buying a car.
I know people who have spent almost 100% of their yearly salary on buying a car. I know some who spent only 5% of their yearly salary on a car.
How much would you say is too much? If you're holding down a fairly decent job that pays say £30k per year how much of that would you spend on buying a car?
I was quite surprised to recently learn that a colleague of mine who is on a temporary promotion (covering materninty leave) has spent £20k on a Audi A3 when her gross salary is £30k. For me that was too much but it doesn't seem to have affected her lifestyle in one bit.
You probably might find that her "lifestyle" like her car is on credit. I know people who have spent almost 100% of their yearly salary on buying a car. I know some who spent only 5% of their yearly salary on a car.
How much would you say is too much? If you're holding down a fairly decent job that pays say £30k per year how much of that would you spend on buying a car?
I was quite surprised to recently learn that a colleague of mine who is on a temporary promotion (covering materninty leave) has spent £20k on a Audi A3 when her gross salary is £30k. For me that was too much but it doesn't seem to have affected her lifestyle in one bit.
Finance is fine in the right circumstances. Also you have to bear in mind different people have different priorities, some people just want a run around, and don't care what people think of it. For others image/status is more important. Although I don't like to admit it, I think its fair to say image and status holds some degree of importance to most of us.
For a few image and status is everything and they don't fully understand what they are doing when they sign a credit agreement. It always catches up with them in the end.
I dont really understand the link between annual earnings and the value of your car.
Is somebody who buys a new car every 10 years, earns £30k a year and spends £40k on the car some sort of sad loser or something?
Surely if you've got the savings it doesn't really matter what the value of the car is versus your salary?
My current car is worth perhaps 10% of my salary. When I bought it was 70% of my salary. Both of these statistics are utterly meaningless and have little to do with how I choose to buy cars.
Is somebody who buys a new car every 10 years, earns £30k a year and spends £40k on the car some sort of sad loser or something?
Surely if you've got the savings it doesn't really matter what the value of the car is versus your salary?
My current car is worth perhaps 10% of my salary. When I bought it was 70% of my salary. Both of these statistics are utterly meaningless and have little to do with how I choose to buy cars.
I spent around 4.5% of my annual wage on my current car. I don't earn a great deal either.
Works for me. Gets me there and back.
I don't think your annual wage is anything to go by though. Everyone has different circumstances. One person on 30k might be able to afford 70% of there wage where another will only be able to afford 20%.
What really matters is that you can afford it.
Works for me. Gets me there and back.
I don't think your annual wage is anything to go by though. Everyone has different circumstances. One person on 30k might be able to afford 70% of there wage where another will only be able to afford 20%.
What really matters is that you can afford it.
Too much is when somone can't afford it, or is wrong to do it (i.e prioritise car over baby etc).
IMO, the cost of ownership is the only thing important - so that 10 plate Astra on tick is certainly a far dafter proposition than a 2005 911 bought with cash - even if the 911 lands a big bill, the Astra would probably cost more to own over 3 years.
IMO, the cost of ownership is the only thing important - so that 10 plate Astra on tick is certainly a far dafter proposition than a 2005 911 bought with cash - even if the 911 lands a big bill, the Astra would probably cost more to own over 3 years.
flattotheboards said:
wackojacko said:
10k at most for now out of 24K is perfecto at 17 
......soon to be purchasing a Clio 182 Trophy
Am I reading that correctly - you earn £24k at 17? ......soon to be purchasing a Clio 182 Trophy
(also nearly 18)
wackojacko said:
flattotheboards said:
wackojacko said:
10k at most for now out of 24K is perfecto at 17 ......soon to be purchasing a Clio 182 Trophy
Am I reading that correctly - you earn £24k at 17? ......soon to be purchasing a Clio 182 Trophy(also nearly 18)
volvoforlife said:
I was quite surprised to recently learn that a colleague of mine who is on a temporary promotion (covering materninty leave) has spent £20k on a Audi A3 when her gross salary is £30k. For me that was too much but it doesn't seem to have affected her lifestyle in one bit.
Has she actually gone to the bank and taken out £20k in cash to fund that... or has she taken out a PCP at £199 PCM? I suspect the latter. A £30k salary after tax and NI etc is £1.8k a month, so spending £200 of that on a car is 11%.Some Gump said:
Too much is when somone can't afford it, or is wrong to do it (i.e prioritise car over baby etc).
IMO, the cost of ownership is the only thing important - so that 10 plate Astra on tick is certainly a far dafter proposition than a 2005 911 bought with cash - even if the 911 lands a big bill, the Astra would probably cost more to own over 3 years.
Also depends on liquidity though - if someone needs a car now, finding £200 a month may be easier than finding a lump sum (plus additional lump sums for fixing faults).IMO, the cost of ownership is the only thing important - so that 10 plate Astra on tick is certainly a far dafter proposition than a 2005 911 bought with cash - even if the 911 lands a big bill, the Astra would probably cost more to own over 3 years.
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