How much of your income:car purchase price

Captain Slow IRL

As the title hints at, how much of your annual income would you spend on a car? I was reading, online, and it quoted 10% as a bare minimum. Petrol heads would be more likely to spend between 20% and 50% (and over!) on their car.

At present, I'm only able to spend 10% but I have gone as high as 40% with one car.

CiniO

Do you mean % of income for purchase of car, of % of income spend on car in general (so including petrol, servicing, insurance, etc) ?

Sobanek

I spend 65% of my income on my car, just in tax, fuel and insurance.

166man

Sobanek wrote: »

I spend 65% of my income on my car, just in tax, fuel and insurance.

Jaysus.....I'm not even that bad...!

Sobanek

Sobanek wrote: »

I spend 65% of my income on my car, just in tax, fuel and insurance.

:eek:

Are you working full time?

Leprechaun77

Sobanek wrote: »

I spend 65% of my income on my car, just in tax, fuel and insurance.

:eek:

....and how easy is it to get a good nights kip?....seats comfy?

Sobanek

Augeo wrote: »

:eek:

Are you working full time?

I am, and I earn more than minimum wage :pac:

Seats are very comfy. It's a 7 Series after all :P

#V12Life

Foxhole Norman

My car, tax and insurance comes to about 40% of my earnings, but I typically only work part time at weekends.

Alanstrainor

Sobanek wrote: »

I am, and I earn more than minimum wage :pac:

Seats are very comfy. It's a 7 Series after all :P

#V12Life

That is pure insanity...

I know we all talk about big engines and how great it is to be able to buy such cars that cheap. But christ almighty... wait a few years until you can better afford such a toy! And that's coming from me who has a 1080 tax bill per year!

pippip

Alanstrainor wrote: »

That is pure insanity...

I know we all talk about big engines and how great it is to be able to buy such cars that cheap. But christ almighty... wait a few years until you can better afford such a toy! And that's coming from me who has a 1080 tax bill per year!

But he can afford it..... if you have no rent or expenses then the only other place his money will end up is building in his account. Different story if you're struggling to pay bills.

Senecio

Most recent purchase was 28K EUR. Puts it at <20% of gross income. I love my cars but I couldn't justify more. There are far better things in life to spend/save for.

Foxhole Norman

Senecio wrote: »

Most recent purchase was 28K EUR. Puts it at <20% of gross income. I love my cars but I couldn't justify more. There are far better things in life to spend/save for.

Don't be saying that in a Motors forum now :pac:

dodzy

Senecio wrote: »

Most recent purchase was 28K EUR. Puts it at <20% of gross income. I love my cars but I couldn't justify more. There are far better things in life to spend/save for.

Now that's a nice wage;)

Stheno

dodzy wrote: »

Now that's a nice wage;)

If it's PAYE the tax bill would make you ill

StereoSound

My initial purchase worked out at about 40%. I dont really calculate the running costs as its cheap enough 1.4TD octavia. Bought the car brand new nearly 2 years ago. I'll probably keep it until end 2016.

Eric Cartman

I spend about 16-17% of my income keeping both cars on the road. That only factors in small bits for repair / upkeep though (1500 a year per car) so it could go as high as 18%, still works out as my highest outgoing though.

In terms of buying a car, id probably never go over a years salary in terms of purchasing.

pippip

pippip wrote: »

But he can afford it..... if you have no rent or expenses then the only other place his money will end up is building in his account. Different story if you're struggling to pay bills.

I'm sure 99.9% of people working full time have both rent and expenses, to be fair.

pippip

Augeo wrote: »

I'm sure 99.9% of people working full time have both rent and expenses, to be fair.

Why would you assume that? I know plenty of people, granted they're mid twenties, that still live at home with full time jobs. The recession changed this drastically, with rents through the roof people aren't as quick to move out as they used to be.

I'd also estimate that a very high percentage of people who do spend 65% of their income on their car do not pay rent or mortgage.

Geniass

Senecio wrote: »

Most recent purchase was 28K EUR. Puts it at <20% of gross income. I love my cars but I couldn't justify more. There are far better things in life to spend/save for.

You're earning more than €140k per year and only buy a €28k car. Cheap bahstard :P

Interslice

I normally buy fixeruppers so purchase price would be easily less than 10%. Probably spend that purchase price again on parts and tyres over the next 6 months.

Asmooh

I currently spent around 75% of my monthly income on my car (for few months) because it's a project car, not to keep it on the road
After Januari it will go to around 2-5%

the buying price of the car was 48% of my monthly pay

Roger Mellie Man on the Telly

I spent 6% of my gross income on a car recently. It's a fixerupper so I'll spend about another 4% of my income to get it sorted.

So 10% of salary, provided it doesn't blow up on the M50.

milhous

All in all I'm earning around 50k and I just bought a brand new car for 34kish.
I had justified it in my head big time but you're making me feel bad!

I reckon I'll end up running it into the ground, I wanted something comfortable/economical and nice looking so I just bit the bullet.

pippip

pippip wrote: »

Why would you assume that? I know plenty of people, granted they're mid twenties, that still live at home with full time jobs. The recession changed this drastically, with rents through the roof people aren't as quick to move out as they used to be.
............

I don't move in silver spoon circles but anyone I know who lived at home in their 20s while working were throwing at least €200/month into the household.

Senecio

Stheno wrote: »

If it's PAYE the tax bill would make you ill

Every time I see my P60 I convulse.

Senecio

Geniass wrote: »

You're earning more than €140k per year and only buy a €28k car. Cheap bahstard :P

One person says cheap, I prefer to call it sensible. Cars depreciate like lead balloons. I prefer to put my money into appreciating assets.

So I can pay more tax!

Stheno

Senecio wrote: »

Every time I see my P60 I convulse.

My income fluctuates as I'm a self employed IT contractor, on a good month, I foam at the mouth looking at how little difference there can be from a less busy month


Hope you are shoving the max avcs into a pension

CiniO

Alanstrainor wrote: »

That is pure insanity...

I know we all talk about big engines and how great it is to be able to buy such cars that cheap. But christ almighty... wait a few years until you can better afford such a toy! And that's coming from me who has a 1080 tax bill per year!

I suppose Sobanek is at that age, where spendings on car are the most important, so no wonder he spends that much.

When I was 19, 20, 21 while I wasn't working I used to spend nearly every penny I had on my car.

CiniO

Senecio wrote: »

Most recent purchase was 28K EUR. Puts it at <20% of gross income. I love my cars but I couldn't justify more. There are far better things in life to spend/save for.

Like what :eek:

166man

CiniO wrote: »

Like what :eek:

Family? A property? Etc....

Not sure how it's so confusing for you to understand that there's other things to spend income on...!

CiniO

166man wrote: »

Family? A property? Etc....

Not sure how it's so confusing for you to understand that there's other things to spend income on...!

Well, I seldom use that here, but it was sarcasm on my side

bilbot79

milhous wrote: »

All in all I'm earning around 50k and I just bought a brand new car for 34kish.
I had justified it in my head big time but you're making me feel bad!

I reckon I'll end up running it into the ground, I wanted something comfortable/economical and nice looking so I just bit the bullet.

What did you get?

Stheno

Stheno wrote: »

....


Hope you are shoving the max avcs into a pension

Not many folk on that sort of salary are I imagine, pensions are taxed too as income so it's not such a huge incentive when you are on a large salary to put lots extra into the pension fund. As many know, it can go horribly wrong too, the likes of BOI shares etc were considered "bankers" by many/most fund managers.

A bird in the hand and all

HUGELY off topic so apologies to all.

Senecio

166man wrote: »

Family? A property? Etc....

Not sure how it's so confusing for you to understand that there's other things to spend income on...!

Yes to the above. And in addition I'll add holidays, travel, spending time with family and close friends.

Don't get me wrong, when I was younger I'd spent considerably more. As I've grown older I've placed more importance on life's experiences than material belongings.

If you have the means, knock yourself out.

Stheno

Augeo wrote: »

Not many folk on that sort of salary are I imagine, pensions are taxed too as income so it's not such a huge incentive when you are on a large salary to put lots extra into the pension fund. As many know, it can go horribly wrong too, the likes of BOI shares etc were considered "bankers" by many/most fund managers.

A bird in the hand and all

HUGELY off topic so apologies to all.

Most I know do being completely tax deductible

Stheno

Stheno wrote: »

Most I know do being completely tax deductible

they'll be paying the higher rate on it in years to come anyway if they are on that sort of wedge €140/150k, that's some pension contribution if you are in your 30s, 40s, 50s.

bilbot79

Have to remember too if you say 40% it only means this year and also say you keep the same car for 4 years you get some cash back when selling so it's not as much as it seems

Emsloe

Imminent purchase price is exactly 50% of my pre-tax annual salary. Sweaty palm time.

bilbot79

Emsloe wrote: »

Imminent purchase price is exactly 50% of my pre-tax annual salary. Sweaty palm time.

Assume you hadn't it saved up in advance either?

Emsloe

bilbot79 wrote: »

Assume you hadn't it saved up in advance either?

I have, it's in the bank waiting to be spent.

Hachiko

Captain Slow IRL wrote: »

As the title hints at, how much of your annual income would you spend on a car? I was reading, online, and it quoted 10% as a bare minimum. Petrol heads would be more likely to spend between 20% and 50% (and over!) on their car.

At present, I'm only able to spend 10% but I have gone as high as 40% with one car.

25% for me inc fuel,insurance,tax give or take. I want a ISF next year so things could change (in a bad way)

dgt

The car was far less than a weeks wages (€295)

Most of the expense on it is diesel. Averaging 1k miles a week you can see that gets expensive fast. One week I put up over 1600 miles... Very expensive!

Oil changes every 6k miles on the button, fuel filter when its needed (changed on the evening i got it, haven't changed it since). Tyres are free

Its only needed a set of pads, washer motor, wishbone and a new aux belt. Now currently needs a starter but I'm not complaining

So in total about 20% tops on that car. I have far bigger things to worry about that i need to devote finances to at the moment

bilbot79

Emsloe wrote: »

I have, it's in the bank waiting to be spent.

Nice one. Living my dream!

166man

Emsloe wrote: »

I have, it's in the bank waiting to be spent.

Make sure you spend it before the bank spends it...!

JJJJNR

Jesus wept, is this 2005 again, next thing you'll be hearing is people putting shower rooms in 3 bed semis

alias no.9

My current motor cost close to 100% of my Gross Weekly Pay

2.0 20v Turbocharged engine, heated leather seats and a car phone

Cost me €5 per BHP

Bangernomics FTW

The_Honeybadger

Car bought three years ago for about 12% of pre tax income. Yearly spend on running the car all in is about 8% doing 30,000km approx. Car has been remarkably reliable although I know there are some big bills on the way in the near future for routine stuff like timing belt, shocks etc. Im debating whether to do this work or trade it in at the minute.
Would probably spend a lot more than 12% this time.

milhous

bilbot79 wrote: »

What did you get?

Got a VW Passat highline. I always liked black cars with cream leather interiors. It's a bit of an old mans car tbf but I am nearly 30. Loving it so far! Especially the heated seats on a cold winters morning.

Zoney

About 6% for purchase price 2 years ago and 7% p.a. in tax, insurance, petrol, depreciation, maintenance. Contemplating 20% for next purchase, running costs will be lower but still overall 7% p.a. Including deprecation.

Captain Slow IRL

dgt wrote: »

The car was far less than a weeks wages (€295)

Most of the expense on it is diesel. Averaging 1k miles a week you can see that gets expensive fast. One week I put up over 1600 miles... Very expensive!

Oil changes every 6k miles on the button, fuel filter when its needed (changed on the evening i got it, haven't changed it since). Tyres are free

Its only needed a set of pads, washer motor, wishbone and a new aux belt. Now currently needs a starter but I'm not complaining

So in total about 20% tops on that car. I have far bigger things to worry about that i need to devote finances to at the moment

What are you driving?