It is normal to spend 50k-100k to buy a car?

nomekop on 03/02/2020 - 15:47

Hi all,

I am honestly surprised every time I see a post of people buying a car that expensive. However today the post mentioned buying a 70k car as a gift, so my questions are:

1) Do people really has that much cash running around?
2) Do they go into debt to pay for it?
3) How much do you need to earn to have that level of flexibility?

Today someone mention they are giving away a car like this for a family member, I presume they have the cash, so are they considered rich?

Sorry, maybe I can't just picture that much cash

Automotive

Comments

  • spackbace on 03/02/2020 - 15:52
    +30

    Everyone has their own definition of 'affordable'. Hell, Wheels Magazine just crowned a $150k car as car of the year

    • [Deactivated] on 03/02/2020 - 21:38
      +21

      If there wasn't some brown envelopes being passed around the Wheels office on that one, I don't know what those guys are smoking. It's inferior to the Jag in pretty much everyway, and the Jag's not best in class. The EQC is basically a compliance car until the EQS comes out. It's a GLC with batteries under the floor.

      • jace88 on 03/02/2020 - 23:43
        +1

        I'm a huge MB fan and have agreed with some of their previous COTYs (eg w204 C250 CDI), but even this seems a bit unlikely given it's poor showing in comparisons wih other similarly sized/priced elecric SUVs. Shrugs. Maybe I am just a luddite.

        • [Deactivated] on 04/02/2020 - 00:03
          +5

          No, it’s not a great car. It’s got terrible range, it’s not quick (compared to other EVs), it doesn’t charge that quickly, and other than that it’s just a GLC with a better interior. It’s augmented Sat Nav is great, but that’s about it. When you take into account it’s $150k, it’s a pretty huge rip off. A GLC43 which is quicker, is $30k less. You can get a Model X Long Range for the same money, And not only is it a class larger, but it’s better in every metric. It charges faster, it’s way quicker, it’s got much more range, it has autonomous capability and it has those great falcon and auto present doors.

          • jace88 on 04/02/2020 - 00:06

            @[Deactivated]: Isn’t augmented satnav not available in Australia anyway?

            • [Deactivated] on 04/02/2020 - 00:07

              @jace88: No idea. But it’s cool.

              • jace88 on 04/02/2020 - 00:08
                +2

                @[Deactivated]: It’s frustrating to see all the Aussie reviewers talk about great features even in their local reviews (not to mention the tease we get seeing what’s available overseas) which get ultimately disabled or are unable to be ordered on customer delivered vehicles…. but I digress.

                • [Deactivated] on 04/02/2020 - 00:10

                  @jace88: You can sometimes unlock those features. I know in my mum’s old Merc you could unlock the speed sign recognition, and the traffic camera alerts even though they were disabled by MB Australia.

                  • jace88 on 04/02/2020 - 00:18

                    @[Deactivated]: Tried playing around with mine and even had features disabled in MBUX which previously worked when I took it in for service! I guess that’s the sign of the times.

        • Cluster on 04/02/2020 - 11:46
          +4

          Wheels has previously named a Mercedes S-Class as Car Of The Year. A vehicle that usually doesn't leave much change out of $150k in the poverty pack edition. Naming such cars in a mainstream consumer magazine as the best available while knowing 99% of the ever shrinking readership could never afford one is quite a joke.

          • spackbace on 04/02/2020 - 12:20

            @Cluster: COTY 2019 was a $150k Merc as well

            The comments section is going off!

          • [Deactivated] on 05/02/2020 - 12:41
            +1

            @Cluster: A pov pack S class costs a lot more than $150k.

      • Bid Sniper on 05/02/2020 - 10:52
        +1

        Agreed, rushed to market compliance car. MB DIY EV kit car, what junk.

    • Skramit on 05/02/2020 - 08:14
      +5

      The EQC is literally a Merc GLC, a 5 year old car, with an electric motor swapped in. It still even has the transmission tunnel in the back seat and space at the rear for the exhaust pipes (lolcakes). A bloody joke. COTY is meant to be for "new cars" by wheels own definition. A ridiculously corrupt and clearly 'paid for' award.

      • [Deactivated] on 05/02/2020 - 12:42
        +2

        You know that’s almost word for word what I said?

      • jace88 on 05/02/2020 - 13:03

        In all fairness the interior is revamped quite a bit to be more similar to the other MBUX models - more GLE than A/B class, and definitely a better effort than the retrofitted MBUX interiors during the facelifts of other models.

        • Skramit on 05/02/2020 - 15:04

          Yeah but an updated car whether it be face-lifted exterior or interior is still not a 'new car' by wheels own definition.

          • jace88 on 05/02/2020 - 15:39

            @Skramit: I think it depends how significant the update is. I remember buying the W204 C250 CDI after the facelift in mid 2011 which actually won COTY back then and I felt that was a substantial facelift which could constitute at least a substantial change beyond the typical annual facelift.

            • Skramit on 05/02/2020 - 15:58
              +1

              @jace88: Yeah I agree its always a grey area whats new and whats not…..

              But imagine if a 2016 GLC was released with 3 petrol engines and no diesels. Then in 2020 they release an all new GLC "all new Diesel" with a new grill and updated interior. No way would it qualify as a 'new car'. It's just another variant in the same model range "GLC"

              Most cars have 3+ variants in the model range. With various interiors and grills and different looks e.g. i30, i30N, i30 Deisel. But they are all the same car in terms of 'car of the year'.

              All the EQC is - is a new power train in an old car with a new grill and nicer interior. It shouldn't qualify, but it does…. apparently…… from the shonky journos at Bauer media. Definitely $$$ involved here ;)

              • jace88 on 07/02/2020 - 08:55

                @Skramit: Not that I want to defend the journos who thought it was COTY, I'm inclined to think that the move from GLC to EQC is much more substantial than the typical dropping of a new engine choice into an existing model. I take your point though that it's not an entirely new car, but it's 'new enough' for me to think it's fair game here.

                Just to reiterate, I haven't driven it but enough international reviews leave me doubtful that it's really COTY worthy… but shrug.

    • Bid Sniper on 05/02/2020 - 11:03
      +5

      I'm sure there were MB contracts for full page ads throughout the read for that magazine after a favorable result.

      Car reviews are a joke and have been for a long time.

      • [Deactivated] on 05/02/2020 - 12:43
        +1

        *Australian car reviews. I still trust Evo, and even MotorTrend to some degree (although their numbers are bullshit).

    • abdalian on 08/02/2020 - 08:15

      Which car is the car of the year?

    • syousef on 10/02/2020 - 00:13

      Here's a good take on the "Car of the Year" nonsense.

      https://www.youtube.com/watch?v=SGboq0_qf2g

      https://www.youtube.com/watch?v=3ccGn9AS3vI&t=280s

    • El Draino on 11/02/2020 - 12:11

      Another ridiculous Wheels pick - just further evidence theyve got their heads up their own asses. No wonder Wheels readership has collapsed

  • Hybroid on 03/02/2020 - 15:52
    +31

    1) Yes.
    2) Some do.
    3) Depends.

    Could you ask any more generic questions?

    • nomekop on 03/02/2020 - 15:58

      Well, I guess the obvious question is how do get to save that much money? Australians has an average $60–65k annual salary and 100k per household, so I don't see how could anyone would save that much money?

      • Hybroid on 03/02/2020 - 15:59
        +26

        There are plenty of people here on $150k-$200k+ salaries. Some have inheritance, investments, dividends etc. It's not unimaginable. How do you think all the supercars roaming around the CBD are purchased?

        • nomekop on 03/02/2020 - 16:53
          -4

          I wonder why do they need ozbargain? hehe

          • Hybroid on 03/02/2020 - 18:20
            +49

            @nomekop: 1) To ensure their disposable income can be stretched further by not paying RRP for things (and hence can afford shiny new things).

            2) To find new things to spend money on. This is actually the main reason I trawl this site, to find things I didn't know I wanted/needed then get it at a good price.

            • [Deactivated] on 03/02/2020 - 22:50
              +15

              @Hybroid: 3) The forum. The only reason I'm on here :)

              • ledifni on 04/02/2020 - 17:37
                +34

                @[Deactivated]: 4) Legal advice
                5) Traffic violations
                6) Asking for a friend questions

                Gotta love these posts.

                • Munki on 05/02/2020 - 14:29
                  +4

                  @ledifni: You forgot the highly relevant: appreciating asset investments.

          • gromit on 04/02/2020 - 05:52
            +3

            @nomekop: It is not about need. I can afford to buy whatever car I like because I manage my money carefully, just because you are in the $200k+ category doesn't mean you aren't careful with how you spend. Part of that is ensuring I am getting the best prices for items I purchase which means I have more money for overseas travel and whatever else I wish to spend on.

          • chriise on 04/02/2020 - 20:01
            +4

            @nomekop: On the contrary I think I need a 150k salary to continue my ozbargain habit

          • nkription on 04/02/2020 - 21:34
            +3

            @nomekop: Detailed MS paint diagrams

          • Kenb0 on 07/02/2020 - 21:57
            +1

            @nomekop: I don't think you realise how much of that $150-$200k+ goes to the taxman…

            I don't think people on those kind of salaries have much to complain about when it comes to the salaries they're on, but people who don't earn as much income also don't realise how much more tax these high salary earners end up paying

        • Islund on 03/02/2020 - 18:02
          +7

          Drugs. Black money

        • monkeyfood on 04/02/2020 - 10:15

          supercars are purchased from drug money by arnotts bickies

      • Typical16-bitEnjoyer on 03/02/2020 - 16:17
        -1

        They don't save. They likely having "family" money.

        • [Deactivated] on 03/02/2020 - 22:51
          +1

          To buy a $70k car?!

          • Scythic on 05/02/2020 - 15:07
            -5

            @[Deactivated]: Yeah why not? Do you have Asian friends?

            • [Deactivated] on 05/02/2020 - 16:01
              +5

              @Scythic: What do you mean? Yes, I have Asian friends. No, I'm not Asian. Yes, I drive a car that's worth more than 70k. No, I didn't pay it with an inheritance. I paid it with my hard-earned money.

              Why would the assumption be that someone can only have nice things if they come from money?

              • daitro on 09/02/2020 - 06:00
                +1

                @[Deactivated]:

                Why would the assumption be that someone can only have nice things if they come from money?

                Envy/jealousy/tall poppy syndrome

      • SydStrand on 03/02/2020 - 16:19
        +1

        If your household income is 100k, it's not inconceivable to put aside 10% of that and get a nice car in a few years. If they finance or trade in, they'll get it even sooner.

        • Chandler on 04/02/2020 - 11:02

          If your household income is 100k, it's not inconceivable to put aside 10% of that

          Whilst I think everyone should have some margin in their income vs expenses (regardless of what figure either of those are), not everyone can put 10% aside - there are a lot of people (some likely on here) that live paycheck to paycheck. Why do you think services like AfterPay have been so successful?

          • Jules_d1 on 04/02/2020 - 15:52
            +12

            @Chandler: They exist because people are not intentional with their money. They buy on impulse and its usually junk they dont need.

            The truth is most people are not wise with money. They do not consider the big picture before buying. Their mentality is "I'll save whatever is left over" and thats usually nothing!

            People who save money simply prioritise different things. They save first and then spend whats left.

            I know people earning 50k a year, debt free with savings.

            I know people earning 150k+ who a broke and in debt.

            So many people buy personal cars when they are not in a financial position to do so. They get wrapped in the notion of 'needing' it. They quickly end up with a car debt MORE than what the car is worth due to buying new and losing value immediately.

            Yes there are many people with nice cars that have been purchased/leased within their means but many of the people you seen in fancy cars are drowning in debt behind the curtains.

            • Ibz on 04/02/2020 - 17:40
              +2

              @Jules_d1: I really like the way you worded that. Save what's left over or spend what's left over. I'm just going into full time work and I needed that realisation, that I should really give myself a saving plan not a spending plan

              • Jackson on 04/02/2020 - 20:12

                @Ibz: If you are only just going into full time work and you have worked this out, you will go far

          • SydStrand on 04/02/2020 - 21:26

            @Chandler: I agree, that's why I say it's 'not inconceivable' as opposed to 'everyone should have.'

      • jnewau on 03/02/2020 - 16:32
        +11

        If you bought a house before 2000 when prices started to go crazy, and you're on a good salary, you've probably already paid it off without too much difficulty.

        Gen Xers like me make up a good chunk of the population….without a mortgage you have plenty to spend things on. Although I still think spending that sort of money on a car is ridiculous

        • Frashal on 04/02/2020 - 10:30
          +6

          I think that's a big part of it. There is a relatively large part of the population who essentially won the lottery out of sheer luck with the timing when they bought their house. They are now sitting on a paid off PPR and multiple paid off or cash flow positive rental properties and are living it up.

          • jnewau on 04/02/2020 - 11:50
            +10

            @Frashal: That's right. At nearly 50 my salary exists for me to buy toys, invest and cover my regular bills.

            And its not really great financial planning or anything, its just luck that I happened to be born at the right time and bought property while it was affordable. I borrowed $120k to buy a house that if I were to buy now I'd have to borrow near $800k. My salary is higher now than it was, but not 6-7 times higher.

            I think people underestimate how liberating it is not to have a mortgage and not have to pay rent - it's an incredible step up over everyone else. And a good portion of the population was able to do that - all my friends who I went to uni with and are late forties/early 50s all own their houses.

            Everyone seems to focus on millenials - and I'm sorry to say they got screwed hard,they'll be facing enormous debt for a long time,but they are not all of the population.

            • ozbjunkie on 04/02/2020 - 22:21
              +4

              @jnewau: You know, some of you old folks are alright.

              Spare an avo bro?

            • SlavOz on 07/02/2020 - 18:48

              @jnewau: Probably the only over 50 who doesn't whine or blame others for having to pay 900k for a house. Cheers bro

        • Trekky on 04/02/2020 - 16:41
          +3

          I bought my house in the late 90's. Only borrowed $110k and had savings of nearly $30k for the deposit and all the expenses that go along with moving and buying a house. My house was $124k

          Paid it off just over 10 years later - didn't go on any holidays, stuck to a budget, paid extra on the mortgage and now I travel once a year overseas, multiple weekends a year interstate and the majority of my house is renovated too. I did this all by myself with no one to help out.

        • croseks on 05/02/2020 - 13:18
          +1

          True, however come back in 2050 and you will be saying how cheap house prices were in 2020 before things started to go crazy :p

      • tsunamisurfer on 03/02/2020 - 16:56
        -1

        The average Australian salary is above $80k, even more in Sydney.

        • techlead on 04/02/2020 - 10:02
          +22

          Average is not a useful measure. The median salary is around $65k, that's more representative. The average is skewed by the outliers at the upper and lower end of the scale.

      • Diji1 on 03/02/2020 - 17:57
        +5

        Australians has an average $60–65k annual salary

        Actually the figure is closer to 70K but averages are misleading because they are moved up or down by small numbers of outlying figures. The news likes using averages to mislead people. They know well enough to not use averages with house prices for example.

        Median income, the point at which half the workforce earned less and half earned more, was 44K in 2017 according to the ATO. The trend is downwards as it has been for over three decades now.

        • spackbace on 03/02/2020 - 18:01
          +9

          Median weekly household gross income is around $1700

          Household is the better decider, as there could be stay-at-home mums, etc etc.

          That works out to a median gross household income around $88,400/yr

          And, according to the linked page, is increasing slightly year on year.

          • BigBirdy on 04/02/2020 - 08:32

            @spackbace: The trouble with looking at “household income” in this context is, you should then look at “household vehicles”. Ie many of these households will have or require more than one vehicle. Are they buying 2x $70K cars?

            • spackbace on 04/02/2020 - 11:29

              @BigBirdy: I was more comparing the figures of "average salary" getting thrown around. Median is the better figure, as is median household

      • kaleidoscope on 04/02/2020 - 08:39
        +4

        You should study a little bit about what average means… Here is a start

        100 people earn $30k
        10 people earn $360k

        average income per person is 60k. is that an accurate number?

        • bejahi on 06/02/2020 - 22:33
          -3

          … And the median of that is $30k.

          Not a great example mate

      • DrRalph on 04/02/2020 - 09:09
        -7

        Do you understand what 'average' means?

        • bio on 04/02/2020 - 22:01
          +14

          That's what a 5 year old would think.

          • ozbjunkie on 04/02/2020 - 22:22

            @bio: Precious little bugger at 5 years old.

        • ozbjunkie on 04/02/2020 - 22:22
          +1

          Income is a skewed distribution not a symmetric distribution.

        • croseks on 05/02/2020 - 13:21
          +4

          Incorrect, average is not the 50% mark. Median is the 50% mark.
          Average can be very misleading, like nsuinteger said above ^^
          "You should study a little bit about what average means… Here is a start

          100 people earn $30k
          10 people earn $360k

          average income per person is 60k. is that an accurate number?"

        • ChatCPT on 06/02/2020 - 09:38

          @tooblue username checks out

      • Vanderhum Doriemus on 05/02/2020 - 16:43
        +1

        Actually, median income is 65k but that includes part-time workers; median full-time income is 78k; average full-time income is 90k; top 10% earn above $100k and top 3% earn above $150k…so there are plenty of people who can afford it.

        See stats here
        https://www.ato.gov.au/About-ATO/Research-and-statistics/In-…

        Then, luxury car brands like Audi, Mercedes, BMW and Porsche count for less than 10% of the car market combined…

        And then consider that with self-employed people, it's easy to claim vehicle depreciation, maintenance, insurance etc as a business expense…

        And there are easy loans out there too…

        For me, I save the money by taking it out of the offset attached to my IP - I bought a $100k car a few years ago when I was making about $120k, currently have increased my income by about 60-70% and when I hit the $300k mark in a few years I will probably buy an even more expensive car cause I like them as toys. If you are careful about deducting most of the running costs and as much depreciation as you can, and if you buy at the right point in the depreciation curve (usually about 3-4 years old) you can definitely get more bang for buck.

        • nomekop on 05/02/2020 - 16:58
          +1

          If you don't mind asking, what career are you on? I can't imagine getting to 300k

      • Slipstream on 06/02/2020 - 13:43

        I think the average salary is $80k in Aus these days isn't it?
        Either way, if you're living in a major city and you're on less than $100k once you've hit your 30's or above i think you're really going to struggle with any sort of "affluent" quality of life.
        In answering your question, i bought my girlfriend an 2 year old AMG A45 for $70k for her birthday as a surprise present last year, i paid cash and didn't take out any sort of loan for it (she's worked extremely hard and deserved it) but our combined income is substantially in excess of $250k and we don't have kids.
        As for your other question as to why people with expendable incomes use Ozbargain? well, just because you have money doesn't mean you want to waste it.

        • SerbSoulja on 06/02/2020 - 15:54
          +4

          Well you did buy your girlfriend a 70K Merc if you end up single that’ll be a big waste of money

      • SlavOz on 07/02/2020 - 18:46

        Well there are plenty of rich people in Australia. I mean very very rich. Millionaires and billionaires. Some of them inherited it from family, others won the lottery, but I would say most of them worked hard for it by starting companies or investing wisely.

        Go to some of the richer areas in Sydney and you'll be amazed at the houses you see. You'll definitely wonder how people afford them.

        For reference, $70k is not that much for a car.

  • Soluble on 03/02/2020 - 15:57
    +17

    Some people have more disposable income than others. For some a bottle of whiskey is a gift, for others a car is a gift. For others they're just trolling

  • Fredfloresjr on 03/02/2020 - 16:01

    YOLO. so why not if you can.

  • Nugs on 03/02/2020 - 16:04
    +6

    Somewhere between normal and unusual.
    Try sitting on side of a road and count cars above and below $50k and you will have your answer
    .

      • HighAndDry on 03/02/2020 - 19:36
        +14

        Why? Don't be jealous, it's an ugly emotion.

  • pegaxs on 03/02/2020 - 16:05

    *cough* humble brag *cough*

  • gomertose on 03/02/2020 - 16:05
    +19

    YES! It is a high yield investment, but you need to spend at least 80k.

    • aimpacc on 04/02/2020 - 11:44

      Is op working in Westpac?

      • Jackson on 04/02/2020 - 20:18

        Something about a bonut

  • Ryanek on 03/02/2020 - 16:06
    +57

    No offense, but I went through your post history and you bought your wife a $130 facial cleanser.

    Do you realise how many people in a third world country would find that obscene?

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