What's Your Salary and What Car Do You Drive?

Save Medicare on 09/09/2017 - 12:40
Last edited 09/09/2017 - 12:44

Most seasoned ozbargainers would agree that spending $80,000 on a car whilst on an entry-level finance salary isn't the most prudent thing to do.

With many immigrant cultures now favouring excessive consumption as a show of status and wealth over prudence, is it really reasonable to spend more money to buy a german-badged car?

Is it reasonable to spend 100k on a cayman "as a hobby" on a 60k salary and save more money on other parts of your life?

If not, what is reasonable?

What is the value of you car compared to your annual post-tax take home salary?

Would also love to hear a vague estimate of your salary, what car you drive and how much you paid in the comments to stimulate discussion

Question also applies to motorcycles

Poll Options

  • 183
    <5%
  • 131
    6-10%
  • 231
    11-20%
  • 127
    21-30%
  • 70
    31-40%
  • 41
    41-50%
  • 38
    51-75%
  • 23
    76-100%
  • 7
    101-150%
  • 1
    151-200%
  • 13
    201%+
  • 118
    I made a high-yield investment of $80k from my $180k salary to get bikies to ferry me everywhere
Automotive

Comments

    • dji1111111 on 11/09/2017 - 08:08
      +2

      well said. it is funny how people act as if driving a bomb somehow makes them so sensible and quick to villify others who choose to spend more on cars than they do.
      Then you see these same people often "waste" money on other stuff. they often glorify spending money on travel but you have to understand that's only your own opinion. to some people that is also wasting money.

      interesting to also see how almost everyone here makes 100k+ after tax lol Certainly don't think the majority of ozbargain does which means only the 100k+ earners are inclined to scream their earnings to the world

  • Tony76 on 11/09/2017 - 08:08
    +3

    $85k pa, driving a 2000 Hyundai Accent with 175000k on it. I'm a tradie and hop into my car a bit dirty at the end of the day, plus I'd rather spend my money wisely. I own an $800k house in Bentleigh East, mortgage is $86k. Been smashing it for years.

    • FrozenFred on 11/09/2017 - 09:03

      Damn I'm jelly. Nice!

    • JimB on 11/09/2017 - 11:39

      You're a liar Tony!

      A house Bentleigh East is much more than $800k :P

      I wish I bought in Bentleigh East before the McKinnon School Zone got popular.

      • Tony76 on 11/09/2017 - 17:54

        I'm out of the McKinnon school zone. I do live very close to the Virginia Park site where another campus has been talked about though. It's a great area.

        My house is an old weatherboard and the block has been subdivided into a battleaxe block with a 2 bedder behind us, we own 2/3 of the non-common land. I'd guess it's worth $800k, might have to get it valued for my knowledge.

  • carwashhair on 11/09/2017 - 08:15
    +2

    Earn under $80k/year and I drive a European car. A 1991 Volvo 240 GLE. I'm practically Driving Miss Daisy :)

    • FrozenFred on 11/09/2017 - 09:04
      +1

      Dam that's old :)

  • FrozenFred on 11/09/2017 - 09:06

    I'm 80k pre tax. Have a h6 liberty got for 14k. But rarely drive it and almost unofficially swapped cars with folks because . It. Drinks so much dinosaur juice!

    Edit: As Snake from The Simpsons would say "She needs premium dude. Premium~!"

  • luckylast on 11/09/2017 - 09:09
    +2

    Earn 100k, ride push bike daily

  • [Deactivated] on 11/09/2017 - 10:05

    People should spend their money on whatever they wish. People should keep their opinions of what others spend their money on to themselves.

    • [Deactivated] on 11/09/2017 - 10:58
      -1

      People asked for the opinion of others.

      People who spend as they wish tend to need money from others.

      People who need money from others tend to want others to mind their own business.

      • [Deactivated] on 11/09/2017 - 11:45

        If people ask for others opinions that's fine.

        I have issue with people who take a sanctimonious view of what other people choose to do with their money.

  • macrocephalic on 11/09/2017 - 10:22
    +2

    My bike cost $4500 in 2011. It gets 26km/L. Tyres are purchased from a guy who operates from a shed in his yard. Servicing is done myself.

  • MasterNoob on 11/09/2017 - 10:45
    +1

    Older cousin gets a 500k base + stock bonuses. He doesn't need a car as he gets chauffeured around.

    • Save Medicare on 11/09/2017 - 10:48

      Does he keep a car in the garage for emergencies though?

      • MasterNoob on 11/09/2017 - 10:50

        No. The last car he owned was a Holden Statesman but he sold it off years ago.

  • dis4vow on 11/09/2017 - 10:53
    +1

    Motorcycle for the win.
    An expensive one I bought NEW (the horror) and still less than 10% of my income.

    Registration costs more than it should in Victoria which is annoying but everything else combined including petrol (would be less $1000 per year in operating costs.

  • plentifoo on 11/09/2017 - 10:55

    90k. I drive a 2007 BMW 325i coupe. Bought 3rd hand from a friend who used it as a weekender for roughly 22k. Best big ticket purchase I've made in the past decade. It did get me into cars though and now I'm lusting after a 230i coupe. Not a hobby car guy, but I know my basics and the drive quality and fun is head and shoulders over the cars I used to drive (i30, camry and corolla). Decided to upgrade only after buying my own home and renting it out on a 2 year lease :).

  • [Deactivated] on 11/09/2017 - 10:56

    Motorcycles are a different kettle of fish. They are next to impossible to get tax deductions on them.

    Rich people drive expensive cars because they are spending pre-taxed income. If you did not realise that already, you are most definitely not in the capacity to own a luxury car. It will end up stalling your financial growth. Personally, if I was spending Post-tax income, I wouldn't buy a car that cost more than 6 months' income. It's a arbitrary amount, but that's the line.

  • amaslam on 11/09/2017 - 11:05
    +2

    Over 200k salary, drive a 2004 German 5.0 ltr v8. Paid < $30k - 3 yrs ago (It was > $180k new). Plenty quick (rarely revs above 1500 rpm), brutally fast (and let's you know it if you stomp the pedal). If it's lost 10% power since new (or more) I wouldn't even know because that is well above 200 km/h territory.

    Maintenance, about the same as the wifes Captiva (2008, used). Parts (plenty $$$) but since it's never stressed (or raced) the existing parts do last a LONG time (I think the only item I need fixed at the moment is a twitchy air-con fan and a cracked bushing).

    Fuel (a bit thirsty) - it wasn't going to be a fuel efficient car but I get about 400-500km/tank. Fuel isn't my biggest annual expense, insurance beats it.

    I have lot's of fun with it (more a cruiser than a racer for me), the kids love it too for the long and cruisy drives and bit of revs on some empty roads on a sunny day.

    Do I think 60k salary on a 100k+ car is bad - Yup. Save that money towards some house or unit you intend to buy (or pay down the CCs if you put everything on those). Your 100k car is going to be my 20k second car in < 6 yrs so what do you get with that 80k loss in 6 yrs?

    For now 20k on something where you are the 2nd or 3rd owner and move on to more important things.

    • [Deactivated] on 11/09/2017 - 20:09
      +1

      2004 German 5.0 V8? CLK or E500 are the only ones I can think of. Not really brutally fast cars.

  • qvinto on 11/09/2017 - 11:07
    +6

    Seems the average salary here is ~150k. Impressive

    • dji1111111 on 11/09/2017 - 11:29
      +2

      and that's post tax. lol

  • SupeNintendoChalmers on 11/09/2017 - 11:33

    ~70-100K

    Just a basic Korean car, though I'm planning on getting a Nissan Figaro soon

  • krayz on 11/09/2017 - 11:38
    -1

    103k package

    Currently have a 2012 Camry, looking to upgrade to a used Mercedes C200 soon

    • JimB on 11/09/2017 - 11:41
      +4

      Massive change.

      Going from a car that is super reliable to a lemon once it gets older.

      Not that I recommend against it, just don't expect them to be super reliable.

      • krayz on 11/09/2017 - 12:49
        -1

        Yep! Very aware, was thinking of getting the 2014/15 model as a present to myself, and just giving the camry to my dad

        • JimB on 11/09/2017 - 13:15

          Definitely get the 2015 model update not the superceded one.

        • krayz on 11/09/2017 - 15:17

          @JB1: Any thoughts as to why?

        • SupeNintendoChalmers on 11/09/2017 - 16:10
          +1

          @Rayner: Why on Earth anyone would pay German $$$ for South African quality is beyond me…

        • JimB on 11/09/2017 - 16:43

          @Rayner:

          2014 model is the old version.

  • ryban3z on 11/09/2017 - 11:48
    +1

    $87k (incl super), $200 spent on car.

    Currently driving a 2001 Ford Ka 2 (3 door hatchback). Get's me from A to B, can park it anywhere, low maintenance and super zippy so can still have fun driving it around. Just need it for local drives and going to the train station.

    Imho, driving in Melbourne city and suburbs isnt super fun due to traffic and endless traffic lights and red light cameras.

    If I was commuting far for work or did regular weekend trips down the coast or into regional Vic, then would definitely consider upgrading for comfort. Still wouldnt spend much more than 10-15% of my annual salary on a car.

    *edit spelling

    • Zaenille on 11/09/2017 - 22:55

      $200? Or you mean $2000?

      • ryban3z on 13/09/2017 - 19:32
        +1

        $200 (bought off a seller who was going to send it to the wreckers!) Bit of an anomaly, but just trying to illustrate the point that you can get a cheap car that will do the job without breaking the bank!

  • Topdog on 11/09/2017 - 11:52
    +2

    85k 2015 Toyota aurion 37K

  • methdd on 11/09/2017 - 11:59
    +2

    Over $200k a year.

    2016 Model S P85D
    2017 C63S
    1988 E30 M3

    And about five motorbikes.

    • Chewiebacca on 11/09/2017 - 14:42

      Very nice cars.

      • methdd on 11/09/2017 - 17:05
        +1

        I'm a car and bike nut :)

  • Diesmile on 11/09/2017 - 12:59
    +2

    I paid my yearly income for a Lexus, because I love it and you only live once

    85k income and plan to keep the car for 10 years. My previous Honda lasted 9.5 years before hand down to patents

    • cintamami on 13/09/2017 - 16:43

      Which Lexus have you got? I really want the IS 300 H.

      • Diesmile on 13/09/2017 - 20:23

        I really like the 300h as well, but I end up with 200t F spots with ep 1

  • kbar on 11/09/2017 - 13:08

    80k
    2004 E46 BMW 330ci
    Don't use the car much for work so mainly a weekend car.

  • AlanHB on 11/09/2017 - 13:25

    I make around $120k (before tax). Car value is around $3k. Had $2k wiped off it this year when someone hit the drivers side door (panel damage).

    Couldn't be bothered fixing it so just asked them to give me $500 and called it there.

    Otherwise the car works, has done just over 200k. Probably get a new (second hand) one next year.

  • majuks on 11/09/2017 - 13:25
    -2

    over 200k.

    Toyota Aurion.

    The reason most Chinese drive German Cars is:
    a) there's a propaganda to boycott most things made by Japanese
    b) German Car = realiability
    c) most of those German Car on sale here is actually cost 2 x back in China.So, relatively, its cheaper to drive a German Car here.

    • Duram on 11/09/2017 - 16:31
      +1

      Do they know the Germans were the Japanese allies ?

    • JimB on 11/09/2017 - 16:46

      Most Chinese don't drive German cars.

      It would true to say most Chinese aspire to drive German cars.

      They aspire to drive German cars like to aspire to own luxury goods.

      • nephilim on 11/09/2017 - 19:44

        What? Lamando is a good example, its just VW, major sponsor of popular shows in China like Runningman

      • majuks on 11/09/2017 - 20:27
        +1

        Most immigrants I known of from China tend to drive Audi or Mercedez
        Most much earlier Chinese Immigrants tend to drive whatever they pleases.

      • payless69 on 12/09/2017 - 20:13

        just travel China: Anybody with a slightly better govt job drives a black Audi. Poor Chinese who had cars for a long time usually have an old VW Passat that is called Santana there. VW would not be the largest if they would not have gone into China.

    • [Deactivated] on 11/09/2017 - 19:54

      German cars from mid range 3 series up are not relatively cheap here. They are amongst the most expensive in the world.

      What you are saying is blatently not true. Here is an example:

      BMW 740Li in China costs 1.18 million Yuan, which is $224,000

      https://carnewschina.com/2015/10/26/2016-bmw-7-series-launch…

      BMW 740Li in Victoria costs $260,000

      https://www.bmw.com.au/compare-price

      The same applies for other manufactures.

  • geoffs87 on 11/09/2017 - 13:44
    +2

    Combined over $200k,

    spent $13k on a 1yr old focus, 4 years ago. Still only got 20,000km's on it. We never drive, public transport to work.

  • doptimal on 11/09/2017 - 13:45
    +5

    I'm on 65k and am driving a beautiful 2010 Audi Q5 that I bought for 24k and everyone around me is complaining that my car is not appropriate for my salary (as I got a loan worth 1/3rd of my salary in round figures), however it makes me happy every day so everyone can stick it.

    • jsediv on 11/09/2017 - 14:36
      +1

      Your car, your money, your life….. their opinions.

      P.S nice car

  • Jeaso on 11/09/2017 - 13:49

    Just over 100k, drive a 9k 2016 motorcycle… You're right OP I should upgrade!

  • jsediv on 11/09/2017 - 13:49

    $50-$60k. Bought 2010 FG XR6 for $8k Cash

  • yoonibear on 11/09/2017 - 13:51
    +1

    70k - Fiesta ST.

    Had to replace as the old one kept breaking down every fortnight. Lasted a good 10 years

  • Beanvee on 11/09/2017 - 14:15

    65k and my car was purchased at 6k, holden commodore ute VY6.

  • nightshade0 on 11/09/2017 - 14:21
    +1

    130K, 17 MQ TRITON se, 15 zx636 ninja and a 12 wrf450. Own both bikes outright and put down a heavy deposit on the ute. Very happy with the purchase.

  • curryblender on 11/09/2017 - 14:28

    Own business
    Around $200k
    BMW X6

    • Apue on 11/09/2017 - 21:34

      Nice one!

  • usbc activist on 11/09/2017 - 14:33
    +1

    $125,000. Drive a Mazda 3. Bought it new in 2012. Cannot get myself to buy another car seeing the EMI I used to pay.

    • SupeNintendoChalmers on 11/09/2017 - 16:14

      EMI?

      • usbc activist on 11/09/2017 - 17:39

        Equated montly instalments. I paid $290 per fortnight for 4 weeks for that car. I was sold lot of garbage addons and insurances on the car. At that time I did not know about the ozbargain community that I can take advise from.

  • Chewiebacca on 11/09/2017 - 14:35

    2015 Audi S1, valued at ~40k.
    Income from casual work last year (worked 10 months), full time student.
    $24k, not including side work.
    21 years old

    5th car, worked my way up slowly, previous car was an FN2 Civic Type R. Have always chosen the model of car I get very carefully, I expect when I sell the Audi S1 in a year or two I will probably break even with what I spent.

    Worth it to me as I consider myself an automotive enthusiast, also given these cars aren't common and will hold resale well, especially given what I paid for it.

    (EDIT: Bought the vehicle outright).

  • Powershopz on 11/09/2017 - 14:56
    +1

    $110K Salary. I drive a 10 year old 2007 Mazda 3 that was bought brand new.

    I've thought about buying a new car recently but then always shy away from it because:

    a) I live near a train station so catch the train to work and barely drive. I do ~8,000 KM per year.
    b) I'd rather spend the money on overseas holidays and/or put the money towards paying off my mortgage.

  • augernised on 11/09/2017 - 15:02
    +2

    75-80k salary at the moment, although I bought my 2010 Ford Focus in 2012 for $18,200 from money I saved while working in highschool. Looking back it was a good 4 years worth of saving which is obviously overkill, but as someone else mentioned its all relative to your values. At the time I was living at home with no expenses, about to start uni, and the car only had 12,000kms so I knew it would last. 5 years later and I still get a warm tingly feeling every time I unlock since its not a car, but more a reward of penny pinching and work ethic in my younger days, so it holds something sentimental.

    Now, with rent and bills and groceries theres no way the salary/car cost ratio would be the same. But back in the day it had me giddy for months.

  • Brianqpr on 11/09/2017 - 15:24

    Combined about $185k. 2016 Hyundai Tuscon is our main family car, cost about $30k. Anything more is a waste in my view unless you have money to burn.

    Back up car is an 98 Toyota still going strong and showing no signs of being ready for retirement. Picked that up for $4k a couple of years ago once the logistics of getting ourselves and kids everywhere became more difficult. Perfectly meets the brief of being cheap, reliable and with decent features.

  • Thiefsie on 11/09/2017 - 15:27

    $225k household income depending on bonuses, pre-tax.

    Own the following 4 vehicles:
    2003/4 Subaru WRX (worth about $8-10k) - My daily
    2007 Aprilia RS125 (worth about $3-4k) - need to sell this…! Old toy, my learner!
    2008/9 Kawasaki ZX-6R (Probably worth about $8-10k) - My toy
    Old bimmer E36. Not worth much, maybe $1-3k. Paid $700 - Baby cart

    Most of the money is sunk into our mortgages and with a kid on the way, surely to disappear into child-rearing costs.

  • viet_fob on 11/09/2017 - 15:54

    200k Income
    2016 Audi S3, pretty much covered by a 15k Car Allowance at Work
    2016 VW Polo GTI, daily run around car

    • JimB on 11/09/2017 - 16:48
      +1

      I don't understand if work is paying for your Audi via an allowance why you have another daily?

      • viet_fob on 11/09/2017 - 19:23

        Cause I do about 25,000 km just for work and approx another 15,000km personal, and the balloon payment will screw me over if its 40,000km a year in the change over

  • fruit on 11/09/2017 - 15:56
    +1

    Salary: shit tonne
    Car: currently worth $10k was $25k when brand new

    Is it reasonable to spend 100k on a cayman "as a hobby" on a 60k salary and save more money on other parts of your life?

    No

  • cycleops on 11/09/2017 - 16:06

    Around $175,000 income total.

    Sold my car for a bicycle around 8 years ago. Cost around $1200 and still going well as my daily transport to work.

    My wife drives a 2nd hand Prado which was around $45,000 about 10 years ago.

  • Hamlet on 11/09/2017 - 16:48
    +4

    Why is everyone so rich and still going onto ozBARGAIN? I get <$50k post tax and have to justify my second-hand corolla everyday…

    • Homr on 11/09/2017 - 17:15
      +7

      A Dollar Saved is Better than a Dollar Earned

    • Zaenille on 11/09/2017 - 22:57
      +1

      Everyone tells the truth on the internet

    • Trying2SaveABuck on 11/09/2017 - 23:46
      +2

      Hamlet ill give you some advice most people who earn 200K plus dont have time to waste on websites like Ozbargin to save $3 on there next Lighting Cable.

      I am not rich but i tell you now people who are 'truly' rich (making over 5k weekly) do not talk about money to people who don't have it (unless they're family), they are strewed as faq because they know if people know they have $$$ they will expect them to spend it on them it is like if you win the lotto no one expects to pay for drinks when your in the room.

    • usbc activist on 12/09/2017 - 16:22

      I think most people are quoting their family income. Not individual income.

  • Sycotek on 11/09/2017 - 17:14

    150K+ 10K car (new but major haggling :P)

  • Banxie on 11/09/2017 - 17:16

    $60k and I drive a Porsche GT2 Cayman.

    • Save Medicare on 11/09/2017 - 19:05

      What are your repayments like, and do you ever regret it?

      • [Deactivated] on 11/09/2017 - 19:58
        +6

        Does he regret buying a car that doesn't exist? I don't think so.

      • Banxie on 12/09/2017 - 16:16

        Hell no, its a salary sacrifice so I dont really give a crap. And work is offering to salary sacrifice a Nissan GTR.

        • WhatWouldBiggieDo on 13/09/2017 - 16:10

          Doubt it. There are limits on how much of your TPV (Total Package Value) you can salary sacrifice.

          AND there's no such thing as a Cayman GT2.

  • Ragnarok1983 on 11/09/2017 - 17:21
    +1

    Around 150K

    Daily drive : 33K Subaru Impreza. Perfect for customer visits in chicken farm, sewerage treatment plant.
    Weekender : 90k Mercedes, left over from previous corporate job.

    Given the choice I would never ever buy a luxury car, regardless of the incoming I am on. Too much hassle

    • moo on 11/09/2017 - 17:54

      What are/were the hassles you are experiencing/experienced?

      • Ragnarok1983 on 11/09/2017 - 19:02
        +1

        Depreciation, cost of maintenance (after warranty & service plan expired), watching out for idiots at shopping centres and car parks, worrying about parking it on the side of the road vs undercover paid parking.

  • hero000 on 11/09/2017 - 17:53

    How the hell ya guys earn 100k plus salary. What you do for work?
    I earn 70k and drive a small hatch car that values 3K.

  • Apue on 11/09/2017 - 18:28

    It is surprising to read lots of oz bargainers earn 150k+ Income yet drive crap cars..
    If they don't drive decent cars where do they spend their money for?

    Mortgage,
    Private school fee,
    Overseas travel,
    More investments

    We should compare the disposable income to the cars we own, not the gross income.

    • Save Medicare on 11/09/2017 - 18:48

      What's wrong with sending your kids to james ruse or mhs/macrob?

      • [Deactivated] on 11/09/2017 - 19:59
        +1

        Nothing. But most people's kids are far too stupid to get into either of those.

      • Chewiebacca on 11/09/2017 - 21:27

        Neither MHS nor Macrob are expensive to attend, as with all the other selective schools.

      • Apue on 11/09/2017 - 21:57

        Nothing wrong with it. My kid couldn't make Ruse but just Baulko.

    • majuks on 11/09/2017 - 20:29
      +2

      Probably some of them are just not that into cars.
      Why put a chunk of your hard earned $ into a massive fast depreciating liability?

      • Apue on 11/09/2017 - 22:03

        True if you don't value cars. I am too busy to spend money and time elsewhere. So I reward myself with a decent car.

    • amaslam on 12/09/2017 - 14:36
      +3

      Mortgage, overseas travel, more investments (appreciating assets) and Super.

      I still can't justify having something bought new loses thousands or tens of thousands as soon as you leave the lot.

      New: 100k
      4 yrs old: 30k
      8 yrs old: 15k

      If I'm the first buyer: I lost 85k in 8 yrs (10k+/yr)
      If I'm the second or third buyer (I bought it when it was 4 yrs old): I lost 15k (~4k/yr)

      • WhatWouldBiggieDo on 13/09/2017 - 16:16

        Can you give an example of an 4 year old $100k car that is now worth $30k? Or even $15k after 8 years?

        The Australian used car market is way better than a lot of other markets in terms of depreciation, and I reckon 4 year old $100k cars here are still likely to be worth up around $60k or more, depending on the car of course.

        • amaslam on 13/09/2017 - 17:46

          Volvo S60, quick check at carsales.

  • Jackson on 11/09/2017 - 18:32

    I this supposed to be household income or individual?

  • fatboyslim on 11/09/2017 - 18:51

    Combined household income pretax around 300k.

    Currently own a 5 yr old small hatch (costs 30k when new) and a 5 yrs old medium german sedan (costs 70k when new)

    Has a model 3 on order…

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