Car value to Annual Income Ratio

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CharlieM

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May 22, 2014
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This is purely out of interest as I drive around daily looking at cars which I do not understand how some people can afford them. It interests me to see what the value ratio of the cars people own compare to their yearly household income (lets go with nett income) for example: Husband 2010 hilux value R300 000 + wife Audi 2009 value R150 000 = R450 000 total. Combined nett income for husband and wife is R1 000 000 hence the ratio of the value of cars in household compared to nett income will be 45%.
Seeing that it is a percentage no one needs to give their salary or car brands, but I think it will be interesting to see how much people spend on cars.
 
Hamster

Hamster

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I dunno what my net income is but based on my gross my car is worth 40% of it (according to latest insured value, paid off, 2.5 years old).

I did put down a big deposit on top of a trade in and then killed the remaining balance as quick as I could with bonuses etc.

I love cars but don't see the practicality in paying a ridiculous amount for one every couple of years. People also incur a lot of debt to drive these nice cars - very few are ever paid off imho.
 
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CharlieM

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Lets go with value now as most people hopefully increased their salaries and the value of cars likely decreased. This is open for modification/improvement...
 
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Duan

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If I may, I would like to make some suggestions for clarity:

1. Use your nett income (how much money was deposited into your bank account over the course of the last 12 months)
2. Use the purchase price of the car when YOU bought it (if you are the 2nd owner, do not the price of it when the 1st owner bought it)
3. It may also be interesting to know how often you typically replace your car.

I can setup a survey to ease the burden of data collection.
 
satanboy

satanboy

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Duan said:
If I may, I would like to make some suggestions for clarity:

1. Use your nett income (how much money was deposited into your bank account over the course of the last 12 months)
2. Use the purchase price of the car when YOU bought it (if you are the 2nd owner, do not the price of it when the 1st owner bought it)
3. It may also be interesting to know how often you typically replace your car.

I can setup a survey to ease the burden of data collection.
Click to expand...

but you are not the OP
 
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Duan

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Jun 20, 2004
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satanboy said:
but you are not the OP
Click to expand...

Which is why I offered it up as a suggestion.

BTW:
Mine is around 90% when using nett income and purchase price and 20% when using gross and current value.
 
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C

CharlieM

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May 22, 2014
Messages
138
Duan said:
If I may, I would like to make some suggestions for clarity:

1. Use your nett income (how much money was deposited into your bank account over the course of the last 12 months)
2. Use the purchase price of the car when YOU bought it (if you are the 2nd owner, do not the price of it when the 1st owner bought it
3. It may also be interesting to know how often you typically replace your car.

I can setup a survey to ease the burden of data collection.
Click to expand...

Like the thinking Duan, but for now lets keep it in current form and see where it goes, surveys tend to be slightly more formal and I am hoping people might share some insight as we go along
 
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Duan

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Jun 20, 2004
Messages
872
CharlieM said:
Like the thinking Duan, but for now lets keep it in current form and see where it goes, surveys tend to be slightly more formal and I am hoping people might share some insight as we go along
Click to expand...

All good.
 
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