How much would you need to be earning...
- Thread starter M0T
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Soldato
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All depends on how much free cash you have which doesn't really equate to salary, all to do with outgoings and how much of a deposit etc.
I think that is a good point. Essentially the same as financing the car on a 15, 20 or 25 year deal, making it very affordable in terms of monthly repayments.
Soldato
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hmm really depends bosses here earn in excess of 250K a year and they just drive BMW's and Mercs.
However most of them have several houses.
However most of them have several houses.
Are there really people that stupid to buy a car on a mortgage?
Eg, £40k loan over 20 years = £287 a month but total repayable £68777 @ 6%, and the car will be next to worthless within 10 years.
I'd want to earn a a hell of a lot before dropping £40k on a motor, infact i cant really imagine ever dropping that much on a car when £20k (or even £10k, my car which i would consider very nice, and gets loads of compliments and comments about being OTT was only £8k!) buys so much these days, and i dont put my car as a mega high priority in terms of spending. As it stands i keep my car costs to an amount where the car doesnt cost any noticable chunk of income to run.
In terms of a figure, i'd want to be taking home at least £10k or so before i could ever justify it. Much more than 4 months or so salary on a car i dont think i could imagine.
In terms of a figure, i'd want to be taking home at least £10k or so before i could ever justify it. Much more than 4 months or so salary on a car i dont think i could imagine.
There certainly are. I don't have exact statistics but people will remorgatge for cars, holidays, all sorts really. Unless your perhaps ploughing the equity into other property, rennovations on your existing house or perhaps a business venture it is going on stuff that in the long run is going to cost you a small fortune, but only a little extra on your monthly outgoings. The whole consumer credit industry makes its money based on the fact people want stuff now and will pay over the odds in the long run.
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Plenty of them round here. It's where all the £65K range rovers came from because I'm damn sure they don't all earn enough to just buy them. A lot of people round here were also handed their council places for next to nothing right before the housing boom and made a huge stash when they sold up when the prices flew up. Don't forget when the property prices are still going up the money you took out the mortgage for the car is also going up in value with the property, so realistically the car costs you less and if you're lucky on a boom like this it probably cost next to nothing.
Anybody stuck off the housing ladder renting is paying for all that now.
Funding a car via a mortgage (something I have never done) is actually one of the most sensible ways of funding a car cheaply, but not if you simply draw down the money and add it to your existing term, which is really the key here and what the vast majority of keeping up with the jones's people do of course. Mortgage money is cheap compared to most finance offers, and if you draw down the money and then overpay to cover off the draw down over a short time, or take out a short term second mortgage its probably about the cheapest form of finance you can get, so not as stupid as some of you may have first thought. Simply adding £60K to a mortgage that has 20 years to run for a car is however not a great financial decision (I am being polite), but tomorrow you might die, and I think most of you 'kids' sometimes forget this fact.
As I have said many times, finance is an art and is far from black and white, like most things really...
As I have said many times, finance is an art and is far from black and white, like most things really...