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18-06-2015, 02:44 PM | #1 | ||
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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 %? Last edited by HULK_I6T; 18-06-2015 at 02:52 PM. |
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18-06-2015, 02:46 PM | #2 | ||
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What ever the individual feels is appropriate for their circumstances.
who am i to judge?
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18-06-2015, 02:49 PM | #3 | ||
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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?
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18-06-2015, 02:49 PM | #4 | ||
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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 |
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18-06-2015, 02:53 PM | #5 | ||
FF.Com.Au Hardcore
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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 |
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18-06-2015, 02:54 PM | #6 | ||
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way to judge people you know nothing about their circumstances ;)
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18-06-2015, 03:00 PM | #7 | |||
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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. |
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18-06-2015, 03:10 PM | #8 | ||
FF.Com.Au Hardcore
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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 |
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18-06-2015, 03:13 PM | #9 | ||
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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. |
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18-06-2015, 03:14 PM | #10 | ||
BLUE OVAL INC.
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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. |
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18-06-2015, 03:24 PM | #11 | |||
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Your supposed to keep up with the Jones you know |
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18-06-2015, 03:34 PM | #12 | ||
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18-06-2015, 03:37 PM | #13 | |||
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I would still run the other tests over your current vehicle (reliable, low km, mint condition etc) |
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18-06-2015, 03:42 PM | #14 | ||
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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. |
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18-06-2015, 03:45 PM | #15 | ||
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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 |
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18-06-2015, 04:13 PM | #17 | |||
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My guess is you don't. |
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18-06-2015, 04:16 PM | #18 | |||
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Nice cars should be protected from the careless behaviour of the domestic shopping trolleys and the high slung doors of SUV’s. |
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18-06-2015, 04:20 PM | #19 | |||
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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 |
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18-06-2015, 04:20 PM | #20 | |||
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If I notice the car repayments, I've spent too much. |
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18-06-2015, 04:26 PM | #21 | ||
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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.
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18-06-2015, 04:37 PM | #22 | ||
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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...
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18-06-2015, 04:43 PM | #23 | |||
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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 Last edited by xxx000; 18-06-2015 at 05:08 PM. |
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18-06-2015, 04:45 PM | #24 | |||
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18-06-2015, 04:55 PM | #25 | ||
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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. |
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18-06-2015, 05:05 PM | #26 | |||
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Quote:
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. |
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18-06-2015, 05:09 PM | #27 | ||
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Or its his dream car and he feels he can afford it with whatever financial circumstances he has in place.
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18-06-2015, 05:09 PM | #29 | |||
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What does he think of your drug abuse, coz you're off ya guts. |
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18-06-2015, 05:11 PM | #30 | |||
Critical Thinker
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Quote:
Why do you care so much?
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"the greatest trick the devil pulled, is convincing the world he doesn't exist" 2022 Mazda CX5 GTSP Turbo 2018 Hyundai Santa Fe Highlander 1967 XR FALCON 500 Cars previously owned: 2021 Subaru Outback Sport 2018 Subaru XV-S 2012 Subaru Forester X 2007 Subaru Liberty GT 2001 AU2 75th Anniversary Futura 2001 Subaru GX wagon 1991 EB XR8 1977 XC Fairmont 1990 EA S Pak 1984 XE S Pak 1982 ZJ Fairlane 1983 XE Fairmont 1989 EA Falcon 1984 Datsun Bluebird Wagon 1975 Honda Civic |
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