Cost of your car to your income ratio

JayPS 2288 · 29-04-2022 05:46PM #1

What did your car cost as a percentage off your gross income?

My car cost me €10,000 (Hyundai i10) that my wife is a named driver in, we share this car. My income is just over €100,000.

So mine is 10%.

For those of you who drive multiple cars use the most expensive one in your calculation.

Buddy Bubs · 29-04-2022 05:56PM

What's your real life income as a percentage of your Internet pseudonyms made up fanciful income is what this thread should be called. What a terrible idea for discussion. Who cares. You'd get answers from 5% of income to 500%+ and everything in between.

My father, retired, just spent many multiples of his annual income on an audi etron.

brokenangel · 29-04-2022 05:58PM

You should buy a car that you can afford, if that’s 1% or 100% of your wages that’s your choice

Charles Babbage · 29-04-2022 06:03PM

A more interesting question is how much you spend on your car as a proportion of your income? If you bought a new car and kept it for a couple of years the cost might still only be twice having a banger, even if the capital cost is higher.

29-04-2022 06:15PM

https://www.boards.ie/discussion/comment/118994617#Comment_118994617

Want to work out some examples for us?

I've been driving the same banger for years so the (cost of buying car)/(income since buying car) is definitely less then 1%

bmc58 · 29-04-2022 06:19PM

https://www.boards.ie/discussion/2058243791/cost-of-your-car-to-your-income-ratio

How old was the i10? You're on €100,000 a year and can only afford a €10,000 car?Come on.

JayPS 2288 · 29-04-2022 06:26PM

https://www.boards.ie/discussion/comment/118994666#Comment_118994666

Second hand. It was 2 years old when I bought it.

It’s not a question of what I can afford, it’s what I’m wiling to spend. The car is small and energy efficient so good for the environment and takes up little space and only sips the petrol.

Buying second hand is also better for the world. Reuse etc. RRR. Etc.

I’d rather the money in my own savings account.

Charles Babbage · 29-04-2022 09:42PM

https://www.boards.ie/discussion/comment/118994656#Comment_118994656

Yes, but the cost of buying the car is not the only cost of having a car. There is insurance, fuel, repairs etc.

Wishbone Ash · 29-04-2022 09:53PM

https://www.boards.ie/discussion/comment/118994666#Comment_118994666

The OP didn't say they could only afford a €10,000 car - they said that's what they spent. I could afford to spend €1,000 on a mobile phone but I prefer to spend €100.

30-04-2022 12:21AM

https://www.boards.ie/discussion/comment/118995650#Comment_118995650

My banger has been serviced regularly since I bought it but there is very little that goes wrong with a simple car. The battery ran down through lack of use over time I think. I recharged it and it's been grand since.

I notice you haven't addressed my first question - want to work out an example? Work in insurance, fuel, repairs etc if you want.

I have paid for pretty much everything by card for the past few years so I could probably work out the cost to me to the cent - it still isn't very much.

For example I work with people who told me (pre covid) why don't you buy an electric car, it would suit your multiple short low mileage trips perfectly, and yes an electric car would be ideal for my commute.

But they focused on the running it part (saving hundreds) rather than the spending 40k up front part.

Charles Babbage · 30-04-2022 12:53AM

https://www.boards.ie/discussion/comment/118996120#Comment_118996120

The spending of 40K is not the point, if you have 40K. The point is of course that depreciation on new cars is more in general, although depreciation is all over the place at present. I'm not going to work out examples, but plenty of people spend a comparable amount on tax, fuel and insurance as their car depreciates in a year. It is not a challenge to spend €1000 on fuel in a year nowadays.