Car you drive as a % of income

[HULK_I6T]

There is a young guy from my work that drives a brand new VF HSV GTS. He is mid 20s and has an entry level job likely pays around $50-60,000 per year

He says he bought the car brand new and he is paying it off.

I did some sums in my head and the value of that car is almost twice his annual income. I'm thinking to myself he is trying to be bigger than be really is. Living beyond his means.

My barometer is if you drive a car that is valued more than 50% of your annual income your living beyond your means.

What's the maximum % of a cars value to annual income that's acceptable before it's living beyond your means / showing off?

To me that guy from my work should be driving a $15,000-30,000 car (maximum) to be living appropriately within his means.

Is your % appropriate? What is the right %?

[EFFalcon]

What ever the individual feels is appropriate for their circumstances.

who am i to judge?

[blueoval]

I leave it up to the bank to tell me if they think I'm living beyond my means personally. But I can usually tell how Im fairling by doing my own sums.

Then again, whose to say he doesn't have savings to offset the loan with? What about if he is living at home with his parent and pays no board? Whose to say he doesn't have another job that pays 'cash' to help subsidize he car loan?

[HULK_I6T]

Plenty of people buy cars to be on top, know inside they can't really afford it, but still go on to break the vehicle value as % of income rule.

You just have to go outside and look at your neighbours cars to see proof

[GT450]

What you think is irrelevant and what he does or does not pay is none of our business. Another one of your stupid threads and it's not even friday yet.
GT450

[Black F6]

way to judge people you know nothing about their circumstances ;)

[HULK_I6T]

Originally Posted by GT450

What you think is irrelevant and what he does or does not pay is none of our business. Another one of your stupid threads and it's not even friday yet.
GT450

True that it dont effect you and I...however cars are a status symbol, buying an expensive car is a way of saying to others in the carpark "im doing more than alright". But some people present this way but its not the case, is it.

You can get away with it on a social level but at work where everyone knows what you earn and who you are??

Its like calling yourself the CEO when your in reality the greenkeeper.

[jpblue1000]

My status symbol, that I drove to work today cost me what equates to 0.57% of my income. Yes that's right only just over one half of a percent. What does that say about me?

JP

[xisled]

Hulk you are assuming he is living outside his means, you really have no idea.. What if this car is all he needs to pay off and he still has money after paying it off. Does this still mean is he living outside his means? VF HSV GTS is not a status symbol. No Ford or Holden is.

Mum or Dad may be paying everything for him. He probably still living at home with cooked meals.

Why do you care so much when someone has something that you don’t? All I can see is your jealous. Trying to work out how he can afford it and you can’t. STOP WORRYING ABOUT WHAT OTHER HAVE A GET ON WITH LIFE.

[BENT_8]

Another cracker of a thread Hulk, nice.

Seeing as we have lack lusture incomes (according to some...) we only drive a car which is 20% of our income.
But im not sure about this 'Rule' and i dont buy cars to impress so im finding it hard to relate to your concerns.

[MAGPIE]

Originally Posted by jpblue1000

My status symbol, that I drove to work today cost me what equates to 0.57% of my income. Yes that's right only just over one half of a percent. What does that say about me?

JP

Well according to Hulk you would be uncool and not worthy of hanging with him.

Your supposed to keep up with the Jones you know

[BENT_8]

Originally Posted by jpblue1000

My status symbol, that I drove to work today cost me what equates to 0.57% of my income. Yes that's right only just over one half of a percent. What does that say about me?

JP

You wont be having a sausage sizzle at Hulks house???

[HULK_I6T]

Originally Posted by jpblue1000

My status symbol, that I drove to work today cost me what equates to 0.57% of my income. Yes that's right only just over one half of a percent. What does that say about me?

JP

At least your economical in your thinking. Its better to be economic than live beyond your means and bluff people..

I would still run the other tests over your current vehicle (reliable, low km, mint condition etc)

[FPV8U]

Everyone prioritises differently, some will inject most of their money into a home, others will have a less nice house and have a nicer car, some will have neither and prioritise travel or hundreds of other things.

Good on the bloke for buying what he wanted, they won't be making them much longer and life is meant to be lived how we each choose to do so and so long as those choices don't negatively effect others who are we to judge.

[whitesoarer]

Interesting topic! I read an article that put forward an argument that the maximum you should spend on a car is 20% of your annual income.

My daily (not my Fairlane which I'm selling anyway) is worth 0.001% of my annual income.

edit - missed a zero

[blackf6]

I'd say. If your sleeping in a cardboard box and eating trash. Then, you've spent too much.

[xisled]

Originally Posted by HULK_I6T

At least your economical in your thinking. Its better to be economic than live beyond your means and bluff people..

I would still run the other tests over your current vehicle (reliable, low km, mint condition etc)

But how do you no he is living beyond his means?

My guess is you don't.

[Express]

Originally Posted by HULK_I6T

buying an expensive car is a way of saying to others in the carpark "im doing more than alright"

Nice cars shouldn’t ever be seen in carparks.

Nice cars should be protected from the careless behaviour of the domestic shopping trolleys and the high slung doors of SUV’s.

[jpblue1000]

Originally Posted by HULK_I6T

There is a young guy from my work that drives a brand new VF HSV GTS. He is mid 20s and has an entry level job likely pays around $50-60,000 per year

Or he is 'likely' a much better negotiator than the rest of you and 'likely' actually earns $150-160,000 per year and is 'likely' driving a cheap car as he 'likely' doesn't waste money on status symbols. You just don't know.
Or he has an ebay shop or sells something out of the boot augmenting his income or has a trust fund or paid cash cause he saved his tooth fairy loot?

JP

[furiousgibbon]

Originally Posted by HULK_I6T

My barometer is if you drive a car that is valued more than 50% of your annual income your living beyond your means.

I would say that's not sensible, unless you're living with your parents and paying for nothing else.

If I notice the car repayments, I've spent too much.

[XB GS 351 Coupe]

Who cares what he spend on a car, may be he has no other expenses, entry level job at 60K he is probably doing OK then especially if he is living at home, my entry level job was 15K and I sill drove an XB Coupe.

Personally I think getting a loan to buy a car is stupid, especially a Holden, so he can't be too bright. The last 5 or 6 cars I have bought I have paid cash, two of those were brand new, one a H3 the other an FPV, I still have both, But who am I to say which way is right, personally I don't like paying loans for anything especially a depreciating asset, if I can't afford it I won't buy it. That includes, phones, computers, TV's etc etc I don't do loans, no loans means in the end you have a lot more money to spend on yourself as you are not making the banks rich wasting your hard earned on interest.

If he wants a loan for a depreciating asset and he can afford to eat and live and pay the loan and he is happy to do so, then he is probably enjoying his life more than you who worries about what everyone else has and does.

[Vesper Martini]

Hulk do the sums on the loan repayment, do you think the bank would approve it?

Perhaps there is no loan and he is indeed living within his means...

[xxx000]

Originally Posted by HULK_I6T

At least your economical in your thinking. Its better to be economic than live beyond your means and bluff people..

I would still run the other tests over your current vehicle (reliable, low km, mint condition etc)

Hulk

I'd be more worried, no actually embarrassed, about your spelling and grammar

it's you're not your

and It's not Its

and economical not economic

[xxx000]

Originally Posted by HULK_I6T

There is a young guy from my work that drives a brand new VF HSV GTS. He is mid 20s and has an entry level job likely pays around $50-60,000 per year

He says he bought the car brand new and he is paying it off.

I did some sums in my head and the value of that car is almost twice his annual income. I'm thinking to myself he is trying to be bigger than be really is. Living beyond his means.

My barometer is if you drive a car that is valued more than 50% of your annual income your living beyond your means.

What's the maximum % of a cars value to annual income that's acceptable before it's living beyond your means / showing off?

To me that guy from my work should be driving a $15,000-30,000 car (maximum) to be living appropriately within his means.

Is your % appropriate? What is the right %?

It sounds to be that the underlying factor here is outright jealousy on your part, tarted up as outrage and concern, towards him

[nitro50th]

These days alot of kids get jobs at 16. If he's in his mid 20's then that may be 10 years worth of saving for his car.

Who knows what his circumstances are, alot of presumptions being made here.

[HULK_I6T]

Originally Posted by furiousgibbon

I would say that's not sensible, unless you're living with your parents and paying for nothing else.

If I notice the car repayments, I've spent too much.

Im not talking about car repayments...

Im talking about value of the car vs income..

HSV VF GTS is a $95k car.

If hes earning $60k at best...

Those numbers say hes trying to be bigger than he is.

[FPV8U]

Or its his dream car and he feels he can afford it with whatever financial circumstances he has in place.

[xxx000]

Maybe he should go to the gym to be bigger, like you do

[BENT_8]

Originally Posted by HULK_I6T

Im not talking about car repayments...

Im talking about value of the car vs income..

HSV VF GTS is a $95k car.

If hes earning $60k at best...

Those numbers say hes trying to be bigger than he is.

Who cares, hes not asking you to buy his lunch for him.

What does he think of your drug abuse, coz you're off ya guts.

[blueoval]

Originally Posted by HULK_I6T

Im not talking about car repayments...

Im talking about value of the car vs income..

HSV VF GTS is a $95k car.

If hes earning $60k at best...

Those numbers say hes trying to be bigger than he is.

Yeah but how do you know he didnt pay for half of it with cash he saved up since he was 16 and borrowed the rest?

Why do you care so much?