What is your Car/s value / Home value ratio?

[screenman]

Sadly not

I can say the same about most of the 5,000 cars I have owned., It could be more than that, I was a busy car dealer in the late seventies and through the eighties.

 

[screenman]

I digress; sorry about that. I would say about 3%. I have very little interest in cars, despite still being in business in the motor trade and my house is too big for my requirements now.

 

[Moodyman]

This is a strange metric to consider.

Indeed. Car vs house price ratios are massively skewed by external factors. Car depreciation, geography, house inflation, etc.

The usual advice for individuals is: annual car costs must not exceed 15-20% of net income.

Anybody exceeding this is placing much greater emphasis on car ownership than other factors or, they’re living at home with their parents.

 

[Gunk]

I digress; sorry about that. I would say about 3%. I have very little interest in cars, despite still being in business in the motor trade and my house is too big for my requirements now.

I have very little interest in cars these days, I used to be car mad but these days I much prefer motorcycles

 

[SpokeyDokey]

It's not an infallible guide, but surely how much you spend on something gives some indication of the relative importance to you.

If you cared more about the type of car you had, you'd spend more on it, no? Or am I missing something?

Rather than missing something we are probably just seeing things differently.

The ratio between our car value to house value is just happenstance is what I am saying. Both were simply selected to fit our needs at the time.

The price paid for both was not based on the importance of the items in our life.

We currently run a modest VW SUV (T.Cross) that cost around £26k. In the not too distant future its replacement will have to be an EV. A similar vehicle in EV guise will be roughly £10k more.

The higher value car will not be any more important, or any less important, to us than our current car.

However, our 'ratio' will have changed which underlines the meaningless of the comparison.

 

[BoldonLad]

That’s why my late Fathers advice was so sensible, buy a house you can’t afford and buy a car you can afford to throw away.

I didn’t take any notice, here is my 911 outside our two bed terrace 20 years ago!

View attachment 747117

tut-tut, is that parked on a yellow line, no loading area?

 

[roubaixtuesday]

Rather than missing something we are probably just seeing things differently.

The ratio between our car value to house value is just happenstance is what I am saying. Both were simply selected to fit our needs at the time.

The price paid for both was not based on the importance of the items in our life.

We currently run a modest VW SUV (T.Cross) that cost around £26k. In the not too distant future its replacement will have to be an EV. A similar vehicle in EV guise will be roughly £10k more.

The higher value car will not be any more important, or any less important, to us than our current car.

However, our 'ratio' will have changed which underlines the meaningless of the comparison.

Sure, I agree with that. But equally, you're running £20k cars rather than £5k or £100k cars ( or no car), which isn't just happenstance.

 

[welsh dragon]

Less than 1% for me. I bought my suzuki new 13 years ago. Hopefully I will get another 12 months out-of her when she is due her MOT in February.

I'm not bothered about having a flash or expensive car, but I need one as we are so far from shops and supermarkets and the bus service is rubbish and I live half a mile away from the main road/ bus stop and its uphill all the way so carting shopping around is a no no.

Without my car, we would be very isolated
and wouldn't be able to go anywhere.

 

[SpokeyDokey]

Sure, I agree with that. But equally, you're running £20k cars rather than £5k or £100k cars ( or no car), which isn't just happenstance.

I agree that amount of money paid for car and house, individually, is not happenstance but the ratio betwixt the two values is.

I think that my underlying view is probably best illustrated by the comparison I made between the value of our current petrol powered car vs a replacement EV of otherwise similar kind.

 

[vickster]

Does it matter that much?
I choose to run a 12 year old car as I like it, do <5k miles a year.
I’ve lived in my house 22 years and it’s probably worth 3x what I paid.
I could afford a newer/more costly car and will at some point move, probably out of Greater London and will likely spend less than I sell for but not guaranteed

 

[Gunk]

tut-tut, is that parked on a yellow line, no loading area?

Only before 6.00pm, so parked legally

 

[presta]

I’ve lived in my house 22 years and it’s probably worth 3x what I paid.

Mine's worth >3 times what it was valued at in 1988, and over 100 times what it cost the last time it was sold in 1960. It's intriguing that it went up about ten times as much in the first 28 years as it did in the next 36.

 

[Grant Fondo]

Around 12% here but its an EV company car?
Back when property was cheap in the 90's probably 40-50% and never regretted it.

 

[november4]

We buy 1 year old cars to get vat discount etc and then tend to run them till high millage, so I'm under 1% wife's prob 3%

Prioritised paying off mortgage