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Original poster

How much to spend on a car (monthly payment in relation to disposable income)

34 replies

Onlyrainbows · 07/04/2022 08:21

From previous threads I'm on the quest to find a new car. Waiting times are crazy, but I don't see that as a problem. I do like cars and ultimately do need a reliable for long distances, but I probably average 400mi per month at most. Which does make me think about buying a more expensive car, but then again I don't go to the salon/gym have nor have any expensive hobbies so I think it even outs.

OP posts:
WhoopItUp · 07/04/2022 08:24

400 miles per month isn’t a lot at all - Im pretty sure that’s lower than average. I would think about the type of car you want first, SUV, estate, small and nippy etc. only you know what you can afford each month (and you don’t have to justify it here even though someone will come on an moan about others going to food banks!). What kind of car do you have at the moment?

Original poster
Onlyrainbows · 07/04/2022 08:30

I'd like a luxury SUV. We need it to be biggish rather than compact. We currently have an 11yo Qashqai that sometimes needs to be jump started, and some bits are being held with duct tape! I've owned a countryman and a discovery sport before. I like the size of the countryman but probably too small for our needs

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BarbaraofSeville · 07/04/2022 09:09

Well at least fuel economy won't be too much of a worry if you don't drive very far.

However, consider resale value (other people might not want a big thirsty car that costs a lot to run) and any future road charging locally (or nationally). Are you likely to keep the car long term?

Also consider the security of your income. A big car payment will be a millstone if you're out of work for whatever reason or want to retire/cut your hours etc.

Interested in this thread?

Then you might like threads about this subject:

General money
HippeePrincess · 07/04/2022 09:14

Whys your 11 year old car in such bad shape? Shock

In terms of how much to pay only you know what’s spare, you might have good income but a huge mortgage and high childcare bills or you might have neither.
There’s comparison websites which if you plug in your budget and requirements it gives you an idea of what cars you could get.

BarbaraofSeville · 07/04/2022 09:24

That's a good point about 'what's wrong with the 11 YO car' . Might it just need a new battery?

DP's just bought an 11 YO Subaru with 110k miles on it and it's a lovely car that doesn't look or drive 'old'.

Gladioli23 · 07/04/2022 09:30

Obviously you may just want a new car but I have similar Q's about the 11 year old car - I bought mine second hand 4 years ago and it's now 10 years old and still in perfect nick. I've done about 25k miles in 4 years and the garage says there's nothing wrong with it at all. It has had a new battery after I went away leaving the lights on and it completely flattened it to the point of no return.

PineappleWilson · 07/04/2022 09:38

With the economy at present, I'd look to use savings to buy what you can afford, if the Qashqai can't be kicked into shape, rather than taking out finance or a loan. What you can afford to spend now might not be what you can afford to spend come October or if one of your jobs becomes less secure. For me,now isn't the time to be taking on extra finance

Original poster
Onlyrainbows · 07/04/2022 10:03

I think my Qashqai was never in great shape anyway. Upholstery has holes... And the battery (which has been proven it's not the battery) can't be diagnosed unless we fork out £65 per hour to diagnose

OP posts:
VanillaSpiceCandle · 07/04/2022 10:42

For a luxury SUV with a decent deposit of around £5000 a month and the price would be about £500. That should get you something decent. Mumsnet is really funny about getting cars on PCP so I don’t think you’ll get many answers from people who own this way. However the vast majority of people only new cars buy them this way I don’t think there’s anything wrong with it and the model works for me and has done for a number of years.

Original poster
Onlyrainbows · 07/04/2022 10:42

The problem is, we really don't know what a sensible budget is. By the time finance kicks in (because of current delays), we'd be spending around 15% or so of our disposable income.

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findingsomeone · 07/04/2022 10:50

It's what you're comfortable with.

My car is £350 a month. But it's 0% PCP for a start. And I'll pay the leftover sum in November so I own it outright. I think £350 a month is a lot for a car tbh, but it made sense as I really liked it, it's the family car and we've not payed any interest on it.

Original poster
Onlyrainbows · 07/04/2022 10:52

Thanks Vanilla that's pretty much what we've seen would cost. They seem like a decent deal if you ask me. Cars depreciate regardless and you can also see that as a "monthly" cost

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BarbaraofSeville · 07/04/2022 10:56

But what's sensible for one person is lunacy for someone else.

What do you mean by 'disposable income'? Truely disposable, or just after direct debits and possibly food?

How secure is your income?

Do you have savings? I'm always skeptical when people say they can easily afford something but have no savings, because if you had all that spare money, surely you'd have savings because the spare money would have built up.

How long do you plan to keep the car?

If you're looking for an SUV can you afford the higher maintenance and fuel costs?

It might be sensible, especially if you keep the car for the long term, but might also be the straw that breaks the camels back if you lose your income for whatever reason.

Original poster
Onlyrainbows · 07/04/2022 11:13

Barbara we don't have any "savings" at the moment because I've just paid our holiday to Mexico upfront.

Going forward I don't plan to have any savings until my marriage is "stable". What I mean is the type of savings you build through your life, not £10k for a rainy day. I don't want to save my hard earned cash for half of it ended up going to my husband if we divorce.

I've had SUVs before, I know how much they cost (and if it's a small engine they can be fairly fuel efficient).

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Kezzie200 · 07/04/2022 11:41

We had the cash to buy our Hynudai Tucson (which I would recommend) but needed PCP to get a deposit contribution. They knocked 2k off and interest was 1.5k, so a no brainer anyway.

We repaid it as soon as we could and used the 2k saving to buy a 1.5k 5 year service and MOT plan to fit the warranty period.

We were looking at a medium/large 5 seater SUV and are very pleased with it. Its an N line S model.

BasaltIsland · 07/04/2022 12:17

The sums and percentages mentioned on this thread don’t seem unreasonable, but then I read your update. If I’ve understood correctly, you’re intentionally running down any excess money so as to avoid having to share savings if your marriage breaks down. Is that right? Would choosing between different cars be the difference between having those savings or not? This sounds really concerning. Actively choosing lower financial stability sounds like an unsustainable, self-defeating and stressful solution. Good luck with resolving this (and apologies if I’ve got the wrong end of the stick).

Original poster
Onlyrainbows · 07/04/2022 12:33

@BasaltIsland

The sums and percentages mentioned on this thread don’t seem unreasonable, but then I read your update. If I’ve understood correctly, you’re intentionally running down any excess money so as to avoid having to share savings if your marriage breaks down. Is that right? Would choosing between different cars be the difference between having those savings or not? This sounds really concerning. Actively choosing lower financial stability sounds like an unsustainable, self-defeating and stressful solution. Good luck with resolving this (and apologies if I’ve got the wrong end of the stick).
I have stability of my own (thanks to my job and a trust fund) I just simply don't want to add extra stability to my husband at my cost. What car I buy plays no role in this decision.
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findingsomeone · 07/04/2022 12:42

I'm really shocked you have no savings but plan to spend £500 a month on a car?!

What happens if one of you loses your job, or can't work? How will you cover the bills?

Surely the savings would be both from you and your husband and therefore you each effectively own half, just like the car if owned would be an asset and the value of that split 50:50 also?

As I said I think £350 a month is a lot for a car. Our net pay is over £5k a month and we have £20k for should something horrendous happen. Then monthly we save and have the holiday fund, the Christmas present fund etc.

findingsomeone · 07/04/2022 12:46

The world is a weird place right now re cars depreciating. I expected mine to depreciate a lot. It was about £25k new, and by November when it's three years old I'll have paid it all. My car is going for £21k privately now and more via trade sellers. It's bonkers.

carefullycourageous · 07/04/2022 12:47

@Onlyrainbows

Barbara we don't have any "savings" at the moment because I've just paid our holiday to Mexico upfront.

Going forward I don't plan to have any savings until my marriage is "stable". What I mean is the type of savings you build through your life, not £10k for a rainy day. I don't want to save my hard earned cash for half of it ended up going to my husband if we divorce.

I've had SUVs before, I know how much they cost (and if it's a small engine they can be fairly fuel efficient).

This is quite a confusing and strange post - are you planning to divorce?

I think it is not a sensible move to spend so much on a car when you have no savings.

How is having nothing better than having 50% of something in case of a split anyway?

Original poster
Onlyrainbows · 07/04/2022 12:47

Well yes and no finding I'm paying HIS debts, and he's benefited from MY money for a few years, so I'm thinking about myself (so to speak).

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Original poster
Onlyrainbows · 07/04/2022 12:49

That's because I have ring fenced assets of my own, but any savings would have to be shared, which I'm not willing to do.

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WTF475878237NC · 07/04/2022 12:49

Sounds like a new car is the least of your worries. Have you spoken to a FA or solicitor (privately)?

Viviennemary · 07/04/2022 12:50

I think car loans should be avoided. They end up becoming a burden. Don't overstretch yourself for a car which will depreciate in value.

carefullycourageous · 07/04/2022 12:53

I would get the existing car investigated. £350/month is a lot for just 400 miles per month. It makes no sense to me.