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BMW 3-Series (E90 E92) Forum
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% of yearly income you'd spend on a car?
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07-01-2012, 07:41 AM | #67 | |
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Did you mean what you said £20k - £25k COMBINED or EACH? |
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07-01-2012, 08:05 AM | #68 | |
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07-01-2012, 11:19 AM | #70 |
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Minimum wage is around 12k. Average salary is 22k or so at the moment.
So one working other looking after kids or both working shite jobs and this is very possibly. A horrifying thought. And to those of us discussing whether or not it's sensible to blow £500/month (half of a minimum wage takehome) on a car; quite humbling.
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07-01-2012, 12:06 PM | #71 | |
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It was less whether 2 people could have a combined wage of £25k, which i knew was possible, but managing that with a housing, car and children etc would be tuff.... assuming that it's 'un-assisted living'. Also i guess it is dependant somewhat on where you live in the country. Anyway guess we are getting off topic. I think 25-30% is reasonable depending on your other outgoings. Much like others on here, when i was at home and on a lesser salary i'm pretty sure about 40% of my salary went on my car and the other 60% holidays and going out and gadgets.... seeing as my parents didn't ask for rent. Last edited by DarkAnt335i; 07-01-2012 at 12:18 PM.. |
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07-01-2012, 12:11 PM | #72 | |
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All swings and round about though as our property has lost about 20% of its value since 2008! Hoping by time the interest rates go up, so will the value of the property..... wishful thinking but you never know Last edited by DarkAnt335i; 07-01-2012 at 12:21 PM.. |
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07-01-2012, 01:24 PM | #73 |
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You're very fortunate to be in the position to overpay by so much and without repercussions Ant. I'd be taking it with both hands and getting mortgage free as soon as poss!
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Previously: 2003 Peugeot 206 1.6 8v | 2006 E90 320d M-Sport, 19" BBS CH, Full Ice-cold JL audio install, August 2010 Total BMW 6 page feature car. | 2003 Nissan 350Z GT Coupe 286BHP
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07-01-2012, 05:34 PM | #75 | |
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Going by your previous posts - it looks like you have the right idea about life. You love cars and driving - so what better way to spend your own hard earned cash? I'm 32 this year and soo wish I had done so much more before I got married, had kids and took on a mortgage. Life is too short. Fucking enjoy it and worry about the money you pissed down the drain, once you're retired |
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07-01-2012, 05:42 PM | #76 | |
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I think HP is a better option if you're keeping the car for a good few years - but £530 p/m for 5 years (which I presume is the term) can become a burden - considering that 5 years is a long time and you never know what's going to happen in that length of time. |
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07-01-2012, 09:01 PM | #77 | |
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Technically only 2.5 years to worry about and if the car depreciates less than payments you will be ok throughout. |
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07-03-2012, 07:59 AM | #78 |
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10% max for me these days.
I have the E350cdi estate and after insurance and fuel etc. it works out around 10% of my take home. I honestly can't afford any more than that. At one point I had the CSL and 535d sport touring plus Fionas Mini and that was around 25% of my take home, but I was getting bigger dividends then so still had more spare cash each month, not that I spent it wisely! |
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07-03-2012, 04:07 PM | #79 |
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Vaheed. you haven't mentioned the balloon payment? It somewhat changes the game. PCP you can pay almost double the interest. As they put interest on the GFV too and spread it over the term.. And you always owe the balloon which means the time it takes to hand back without cost is much higher.
PCP pretty much forces private sale about 65% of the way through the term, private sale at completion, or voluntary termination with the knock on affects that has. with HP it's your choice. And after half of the term chances are you're building up equity as you'll be paying the car off significantly faster than it's depreciating. I see the car as a backwards saving scheme. I get X % of what I put in when I sell the car. But at least I haven't blown it like I otherwise would Just checked what I owe versus car value and it's not bad. First 6 months. Car is now 2 years old. It's worth 24k trade value to toss now. I've pad off 3k so shortfall would only be £1000.. That's another benefit of HP over PCP is you're clearing more of the car faster rather than delaying it to the end .. Bear in mind I always assumed that this would be a car I keep for a good 60-70k miles IE 4-5 years. Why would I change it (Unless Sytner REALLY twist my arm with a used F10 M5 in about 2 years )
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Previously: 2003 Peugeot 206 1.6 8v | 2006 E90 320d M-Sport, 19" BBS CH, Full Ice-cold JL audio install, August 2010 Total BMW 6 page feature car. | 2003 Nissan 350Z GT Coupe 286BHP
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07-03-2012, 04:30 PM | #80 |
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I remember in the past HP used to have the interest loaded earlier in the repayment schedule.
For the first while you are only covering interest plus a little of the loan value. Is this still the same? Better still, does someone have the formula used with HP? |
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07-03-2012, 04:40 PM | #81 |
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http://www.dynamic-webs.co.uk/inform...alculator.html
Personal loans are front loaded but with massive discounts which equate to pretty much getting everything back for the period you have not borrowed for yet. Business loans are different, front loaded on fixed rate, interest calculated each month on variable rate. |
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07-03-2012, 04:44 PM | #82 |
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PCP VS HIRE PURCHASE is hardly any different these days for the reason explained about.
It is all about the APR really, this simply tells yo everything about what it will cost. At the moment new cars are around 4-6% rate compared with used at 8-12%. This is why buying new can cost you hardly anything more than used if you get a nice discount as well. |
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07-03-2012, 04:50 PM | #83 | |
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Half the payment, not half the term. Be careful. Borrow £30k and have a balloon of 45% after 48 months and you will owe £13500 at the end, however, the point you can throw the keys back at is £15k, half the amount borrowed. This will happen at around month 45, so hardly worth doing. It is not listed as a negative on your credit history, but it is recorded and will be taken into account next time you take finance out with them. |
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07-03-2012, 08:28 PM | #84 |
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I didn't realise that HP was anything but a simple straight up monthly payment where all payments add up to the full loan amount.
I was referring to that and not an agreement with balloon payments. I was aware that half the total amount with interest had to be paid back and obviously that couldn't be at half way if there was a balloon payment at the end. Last edited by Kerr; 07-03-2012 at 08:36 PM.. |
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07-04-2012, 01:29 AM | #85 | |
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07-04-2012, 04:14 AM | #86 | |
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Yeah, that is right, but with an HP agreement, straight repayment (but it is the loan amount plus interest, so borrow £30k with an 8% apr over 60 months and you will owe £36500), as with a mortgage for the first 2/3 of the loan you are paying far more interest. So it is not till you get close to the end that you have paid half off. |
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07-04-2012, 05:23 AM | #88 | |
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My understanding is you have to get to halfway in total amount repayable. I've read a few examples given on sites like money supermarket and the advice did seem clear before unless those advisors are wrong. Essentially they are saying if the loan is 30k and total repayable is 36.5k, once you have paid 18.25k you are at halfway and can terminate. It was all relevent to the total repayable and not top heavy interest. Last edited by Kerr; 07-04-2012 at 05:53 AM.. |
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