Percentage of income spent on car loan?

niallers1

as a percentage of gross yearly income, What do you spend on car repayments?

Just repayments- Not fuel, servicing , tax and insurance.

No I spend nothing comments please:)

no1beemerfan

I spend nothing

Henry Ford III

0%

Reloc8

Why do you not want 'zero' answers ?

If this is a query seeking to establish the average '% people spend on car loans' you need to factor in the 0's.

If this is a query seeking to establish whether your % is above or below the average or what % you could suppot, then you're wasting your time because everyone's situation is different. Person A may be well able to slant a huge % of income towards his or her beloved car where person B can't because of other obligations. Either than or you'd need to give a full financial picture to get any useful advice...and the question you'd really be asking is 'what's my disposable income'...which you can work out yourself and then work out how much you want to spend on your car.

Equally if you earn a million and want to (e.g. to be ridiculous) spend 500,000 a year on a car loan, you still have 500,000 left to feed and clothe yourself. If you earn 20,000 and dedicate 50% of it to a car loan...

Just sayin' is all.

Oh yeah I spend 0% btw.

edit : sorry, maybe you have a perfectly valid reason for asking the question and seeking to exclude '0%'s - just curious as to what it is.

Cookie_Monster

Up until recently 22.3%

now 0%

niallers1

niallers1 wrote: »

No I spend nothing comments please:)

no1beemerfan wrote: »

I spend nothing

Henry Ford III wrote: »

0%

Reloc8 wrote: »

big fat 0%

...........

:pac:

OP must be delighted so far.

Cookie_Monster

Cookie_Monster wrote: »

Up until recently 22.3%

now 0%

22.3% of your gross income on a car loan :eek:

my finance on my first car was 16% of net for a year, nothing on the current one

Velocitee

15% for just the car

Overall, About 30% of take home pay per month in total (averaging out services/parts/petrol/tax and payments)

Only major thing I bought in the hype of the recession (too young for a house at the time thankfully).

I like my car but will definitely never get a loan that size again. ( and will be looking at cost per month/ not purchase cost in proportion to annual wages - first mistake).

Will either buy next car outright or have v small loan (would prefer first option)

Looking fwd to clearing the loan in 18 months!

redz11

Currently 9% ... only one and a half repayments left though!

Statistician

0% for me too.

Zubeneschamali

niallers1 wrote: »

No I spend nothing comments please

Zero.

But depreciation on the car is running at about 10% (will drop as the car ages and my salary shoots up :rolleyes:)

Nothing at the moment but hopefully changing car in the next while and I will probably get a loan with repayments around 10 to 12% of my monthly income depending on how much I get for the car I have now.

Cookie_Monster

RoverJames wrote: »

22.3% of your gross income on a car loan :eek:

why does that surprise you?
29% or so of net.

Vicxas

9.3% for me.

langdang

Nada

MrDerp

0%
I put 5.5K of my savings with my previous car to get an 11K (sticker) car in March.

Depreciation cost is about 5.7% of net monthly salary.

I was really really really tempted to get a loan and/or spend more savings on a 15-20K car this time out but I decided not to bother. We'll probably buy a gaff in 18-24 months, and I'm already saving towards my next car too. So hopefully in 3 years time, I'll have me gaff bought, have another 10K maybe in car savings and then I'll take that bigger plunge. I'm very happy with what I bought (1.8 Volvo S40 SE) and I'd rather wait to get something I really really want (which will include a biggish loan) until I've got an idea what my medium term finances look like wrt mortgages, children and ****.

If I had jumped this year and spent 20K, I'd have bought a 'nearly' car, and the loan over 3 years would be gobbling up my ability to save towards a dream car. I'm 29, I can wait until I'm 32/33 for the flash! *


* Feel free to throw this in my face in 2015 when I come back asking which estate is best to fit my double buggy :eek:

rain on

3.7% of gross

3 more repayments to go!

niallers1

13%
But will never spend this much again... Celtic delusion madness

biko

niallers1 wrote: »

20%
But will never spend this much again... Celtic delusion madness

Crap, that must sting.

Cash in hand man myself, always have been.

OldmanMondeo

It was about 15% - 20%, but since I lost my job, it will be 50%. Think its time to try and sell the fecker.

niallers1

biko wrote: »

Crap, that must sting.

Cash in hand man myself, always have been.

Miscalculation - 13% of Gross and 25% when you take into account fuel, tax, insurance, servicing e.t.c.

Still stings I will be holding onto this car until it falls apart

Cookie_Monster

Cookie_Monster wrote: »

why does that surprise you?
29% or so of net.

For example €30,000 gross salary is a take home of €24,945.36 ish per year if you don't have any BIK (VHI etc) or pension payments.

If I was taking home €2079/month after tax I don't think I'd fancy paying €575 car loan/month.

Cookie_Monster

RoverJames wrote: »

For example €30,000 gross salary is a take home of €24,945.36 ish per year if you don't have any BIK (VHI etc) or pension payments.

If I was taking home €2079/month after tax I don't think I'd fancy paying €575 car loan/month.

I prefer to pay a higher amount over a shorter period than a lower amount over a longer one hence why it was so high, 3 years and not 5.

Cookie_Monster

Cookie_Monster wrote: »

I prefer to pay a higher amount over a shorter period than a lower amount over a longer one hence why it was so high, 3 years and not 5.

Each to their own
I'd prefer not to have 20 odd % of my gross earnings going on car finance.

keithclancy

0%

Would never get a car on finance, your already spending money on the damn thing , no need to spend more money on getting a loan of money.

E39MSport

02 530d
91 850ci
95 LS400
97 starlet
98 estima

All owned outright - no repayments of any kind. Insured up front too.
Will never take a loan out for a car in future.

thewing

0%

Car finance should have died with the Celtic Tiger.

Anan1

Zero.

Velocitee

wow the amount of people with 0% compared to others (like myself) is staggering. would have thought that a higher percentage of people (like myself) still have outstanding finance.

That said I suppose 3/4/5 year loans are just about finished up with people who bought a car in 06/07/08.

It was quite the done thing in the boom for people in my area for people to change up constantly (munster - countryside). I didn't see it as much in Dublin (people only used cars at weekends so not as often).

Maybe I'm wrong but just my 2c

Yawlboy

0% always only buy with Cash - I tend to change too often to get a loan for a car.

Mr Benevolent

Zero.

JimmyCrackCorn

92 Nissan micra
97 Golf
92 Silvia
99 Renault ****box
97 Accourd
96 Civic

One car loan for 2k repaid in three months in my 10 years of car ownership.

GhostInTheRuins

Zero.

I could never imagine getting a loan for a car. That just makes no sense to me.

GhostInTheRuins

GhostInTheRuins wrote: »

Zero.

I could never imagine getting a loan for a car. That just makes no sense to me.

Well bar a small amount of money aside all I have towards my next car is what I will get for my current car, this will leave me with about half of what I will need to buy the sort of car I want next so a loan makes perfect sense.

Once the repayments are manageable and the interest rate reasonable I dont see the problem.

yungwan

Up until recently it was 14.5%.

Now its repaid thank God. Great to have some disposable come again let me tell you!

I will never get some a long term loan again..... this car will be drove until it falls apart!

kippy

Currently 0%
I have a 11 year old Focus that I bought for 5K in 2007. At the time I had a 3000K loan from the credit union to buy it, I paid if off over about 6 months (my choice) - 500 quid a month was probably 12% of gross salary for 6 months.
Spent a big of money on the car last week to get it back in shape and hope to have it at least another 2-3 years.

Eric Cartman

15% of one of my incomes , have a loan for less than half what similar models are selling for and its my only debt so not doing too bad

R.O.R

Roughly 17% of my Salary, but goes down to around 11% after comission.

Sh1t load of money for something that spends so long sitting around the place doing nothing. At least it's not costing that much to run at the moment though.

Seweryn

GhostInTheRuins wrote: »

Zero.

I could never imagine getting a loan for a car. That just makes no sense to me.

No sense to me either. Zero % on my side as well.

blastman

Nada here, too. I don't intend to ever take out a car loan again.

GhostInTheRuins

GhostInTheRuins wrote: »

Zero.

I could never imagine getting a loan for a car. That just makes no sense to me.

Same, couldnt justify getting a loan. Then again I seem to be going down the path of buy old car, fix up and drive until its not viable to repair any longer. Not sure where my wanting to own a nice/newer car will fit in with this philosophy!

ofcork

Paying about 30% and have a few years to go.

Swampy

Big fat Zero.

vectra

thewing wrote: »

0%

Car finance should have died with the Celtic Tiger.

If it did there would now be no second hand cars available for you

I spend just over 25%

But will be getting it all back when selling


So i guess it is a saving's plan :pac: