How much do people spend on cars?

Mine is going to change significantly from around now. I now get fuel paid for by the company, will be doing a lot of business miles, and pay tax on the fuel that I use (it's not a company car). The ratio of personal miles to business miles will make a huge difference.

All miles - current car costs 10p per mile for fuel. Therefore tax at 4p per mile.

Business miles - tax relief at 45p per mile (up to 10k, then 25p above that). Effectively I'll get 40% of 45p back for each business mile (18p per mile).
 
Trying to work out the cost of ownership of an M135i. I've factored in the following as a baseline:

Loan repayment
Tax
Insurance
MOT
Service (1 per year)
BMW Comprehensive Warranty

Insurance is a rough guess until I speak to a broker and I always pay for that annually. Tyres and general maintenance will be the same.

So excluding the bits above it comes to approximately 18.5% of my monthly net pay. Doesn't sound massively high to me?
 
Robi said:
Trying to work out the cost of ownership of an M135i. I've factored in the following as a baseline:

Loan repayment
Tax
Insurance
MOT
Service (1 per year)
BMW Comprehensive Warranty

Insurance is a rough guess until I speak to a broker and I always pay for that annually. Tyres and general maintenance will be the same.

So excluding the bits above it comes to approximately 18.5% of my monthly net pay. Doesn't sound massively high to me?
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I think that does sound very high compared to most in this thread. Most seem to be under 10-12%. However, if it's a loan and you will be keeping the car at the end of it, you are gaining an asset so it may not be as high as you've calculated. Obviously it depends on your other financial commitments. Living at home with parents? Probably fine. Renting alone in London? No.

Personally I have an arbitrary rule that I don't want to spend more than 1/3 of my net income on finance/loan repayments (not anywhere near that currently, but will be getting close to it after buying a new house in the next year or so).
 
EvilRob said:
I think that does sound very high compared to most in this thread. Most seem to be under 10-12%. However, if it's a loan and you will be keeping the car at the end of it, you are gaining an asset so it may not be as high as you've calculated. Obviously it depends on your other financial commitments. Living at home with parents? Probably fine. Renting alone in London? No.

Personally I have an arbitrary rule that I don't want to spend more than 1/3 of my net income on finance/loan repayments (not anywhere near that currently, but will be getting close to it after buying a new house in the next year or so).
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Sorry I'm a bit confused; the loan repayment itself is 12% of my monthly net salary, so no where near a 1/3. Even including insurance, MOT, servicing, warranty and tax it comes to 18%, which is still significantly less than a third.

12% on the loan and 18% including everything (apart from fuel) seems high?! :confused:

Renting in Manchester. My only other commitments are monthly savings (25%), gym and phone.
 
Robi said:
Sorry I'm a bit confused; the loan repayment itself is 12% of my monthly net salary, so no where near a 1/3. Even including insurance, MOT, servicing, warranty and tax it comes to 18%, which is still significantly less than a third.

12% on the loan and 18% including everything (apart from fuel) seems high?! :confused:

Renting in Manchester. My only other commitments are monthly savings (25%), gym and phone.
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I meant 1/3 on all finance/loans including mortgage payments (or rent I guess) :)
But that's just a personal rule of thumb. I think 18% of net on a car is high, but if you love cars and want to go for it, by all means ignore me! It's only an opinion. I'd love to spend that much on a car but my wife would destroy me.
 
EvilRob said:
I meant 1/3 on all finance/loans including mortgage payments (or rent I guess) :)
But that's just a personal rule of thumb. I think 18% of net on a car is high, but if you love cars and want to go for it, by all means ignore me! It's only an opinion. I'd love to spend that much on a car but my wife would destroy me.
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I value your opinion so thanks!

My rent + all bills and the loan repayment would amount to 29% of my monthly income :)
 
I did make a spreadsheet where I started to work it out. I stopped when it got too depressing.

I think car, tax, insurance, set of tyres and an MOT is around 21%. I've put 20k a year on it which at 30mpg is over £3k in fuel :(

It's also worth about as much as a sleeve of Lambert and Butler with 106k miles on the clock.
 
Jonny ///M said:
I did make a spreadsheet where I started to work it out. I stopped when it got too depressing.

I think car, tax, insurance, set of tyres and an MOT is around 21%. I've put 20k a year on it which at 30mpg is over £3k in fuel :(

It's also worth about as much as a sleeve of Lambert and Butler with 106k miles on the clock.
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M135i?
 
About 5 to 7% to run 2 cars (1999 911 and a 2011 clio), probably a little bit more this year as I have just gone a bit mental spending on the 911 in recent months.
 
I've spent quite a bit on my Evo this year. £600 for some bodywork that needed doing and a fuel pump and filter. Soon be needing 2 new tyres, it's due a service and I need it rolling roaded as it's running lean. It's appreciating though so it'll be worth it in the end.

My MR2 Roadster costs next to nothing to run, all it needs is petrol.

Insurance and tax for both comes to about £1500 all in.

I don't mind spending money on my cars though as it's my main interest/hobby.
 
Robi said:
Trying to work out the cost of ownership of an M135i. I've factored in the following as a baseline:

Loan repayment
Tax
Insurance
MOT
Service (1 per year)
BMW Comprehensive Warranty

Insurance is a rough guess until I speak to a broker and I always pay for that annually. Tyres and general maintenance will be the same.

So excluding the bits above it comes to approximately 18.5% of my monthly net pay. Doesn't sound massively high to me?
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Dont use the loan payment amount as a cost. Part of it is interest, which is a cost and part is just moving money from one place to another. Take the loan interest and use that as a line of cost and depreciation as another. That will be the true cost, taking into account the asset you'll own at the end of it. Sure, it won't be the money coming out your pocket but a decent chunk of it is just moving money from your current account into an asset that you own, so you're not losing it.
 
Car for work (not 2.5 miles from my house) £150* for the car plus insurance tax etc. :D

Wife's car for everything else.


*to clarify that's not monthly, that was the cost of the car :p
 
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About 9% of my yearly salary on the car at the moment via bank loan, but I'll still have the car once I've finished paying it off.
 
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