What % of disposable income to spend on car?

Grumpy_chap

Brie said:

If the income is truly disposable what's to stop you from spending 100% on a car?  

You may be taking "disposable income" differently to how I would.
My take is that "disposable income" is what is left from regular income after regular essential expenses have been met, so after housing, energy, food, etc.
You could choose to spend 100% of that on a car, but then you'd only be able to drive places and not do anything when you get there if the "doing" costs money.

Ergates

mrsmortgage said:

What % of disposable income is a sensible amount to spend on a car? Taking into consideration that this car is also considered a hobby of sorts.

If it's a hobby then, pretty much by definition, no amount would be "sensible".  How important is this hobby and what other things might you want/need to spend the money in the foreseeable future.

Basically that's an impossible question for anyone else to answer.

TheMilkmansDad

mrsmortgage said:

Oh and forgot to add it would be a lease. 

I wouldn't lease a car (personal choice) so my answer in this case would be 0% 

theoretica

My personal answer is very different for a lease or buying outright.  I see a lease as a commitment to spend money I haven't yet earned, and the earning might be derailed by life or I might change my mind about what I wanted to spend it on.  I hate committing my future spending.  But spending my past disposable income, much of which I put into savings, feels better - last time I bought a car I spent maybe 2/3 of what I had added to my savings over the previous year on the purchase cost, that was 4 or 5 years ago and I have no thoughts to replace it. There is obviously the ongoing petrol, tax, insurance, maintenance as well, and I have other hobby spending which could in your case go to the car.

Flight3287462

TheMilkmansDad said:

mrsmortgage said:

Oh and forgot to add it would be a lease. 

I wouldn't lease a car (personal choice) so my answer in this case would be 0% 

Back in the day choosing the deal rather than the make/model you could get very good deals to lease.  Today there are no good deals to be had.

If it was me I wouldn't be going daft on any large purchases.  Things are a little too interesting in the world at the moment which isn't helped by Poland starting exercises in the east of the country in May, Romania moving troops to the Moldova border and Biden asking for $33bn for Ukraine in the last hour or so.

I suggest a tin helmet may be a more pressing purchase

Benny2020

Hookers 50%
Cocaine 25%
Car 25%

caprikid1

Personally given it was not that long ago you stated the below:-

"We really can't pay this last month of rent, we barely have any money left to pay for food."

I would possibly think it's a little bit too soon to making sizable commitment on a lease for a car. Do you now have a suitable emergency fund ? £10K ?

Save up and buy the car outright, then if anything goes wrong you can sell it and you are not committed to a lease.

Personally I think hobby cars should be bought not leased.

mrsmortgage

A) I've finally received (part of) my inheritance. Sure I could pay a car outright but the type of cars I like depreciate like crazy.

I tripled my income! Yes miracles do happen (and I'm on the right track).

C) Part of the situation was due to my husband spending (that has been sorted).

D) I have cancer, I want to at least have some fun given all I've gone through. 

[Deleted User]

Whatever percent you decide on, don't forget to include all the other factors in running a car.

So if for example your disposable is £1000 and you decide to spend 25% = £250...

Then don't make all the £250 go on repayments / lease when you need to include:

• Fuel - (consider potential rises in fuel costs / the "hobby car" being less economical)
• Insurance
• VED
• Servicing & MOT
• Repairs from wear and tear, tyres, brakes, exhaust, wipers etc etc
• Car washing and cleaning
  
• Extras and upgrades as you say it is a hobby car

Also think of your position when you are ready to change the car, so say in 3-5 years, will you have any outstanding finance / equity in the car etc to go towards your next one.

Personally I've always said to my family and friends "It's not what car you have that matters, it is where you go and who you go with"

ie no point having an expensive car and having no money to go on a day trip with the family.

Grey_Critic

Brie said:

If the income is truly disposable what's to stop you from spending 100% on a car?  

The Wife. And I don't like hospital food.