Car to house value ratios

**Rantor** · 20 June 2007, 07:01

Originally posted by GreenerGrass

I was thinking of a financial p1ssing contest for today where you don't actually reveal how much you earn or how expensive your house is.

I came up with the car to house value ratio, and we could also add the car to liquid assets ratio. The optimium % is as low as possible, with a car value of 5% of house value being a sensible maximum.
But I should think there is quite a difference in the averages between north and south.

As for the car to liquid assets ratio, I would guess due to the uncertain nature of contracting we are much more likely to have savings as multiples of car values, rather than the other way around like permies trying to keep up with the Jones while concealing ever increasing levels of unsecured debt.
As a sensible target I guess your car value could be at most 30% of the value of your liquid assets. For some it maybe 3%, then again for other people could be over 100% if they have finance and no savings.

This idea was brought on by seeing a Lambo outside a really scabby terraced house and wondering what they were thinking.

Then again, maybe you live in a million pound mansion and ride a bike.

GG - Wow you've thought all this up and posted it at 7.55 UK time. Doe this not worry you even a tiny wee bit??

**chicane** · 20 June 2007, 07:09

Originally posted by GreenerGrass

This idea was brought on by seeing a Lambo outside a really scabby terraced house and wondering what they were thinking.

That's the landlord.

**GreenerGrass** · 20 June 2007, 07:10

Originally posted by Rantor

GG - Wow you've thought all this up and posted it at 7.55 UK time. Doe this not worry you even a tiny wee bit??

And you replied at 8.01. Been up since 5.30am so inane ideas are flying around, are you going to answer then?

I think the Lambo must be a kit car, if it isn't the landlord must really enjoy rubbing his poor tenants faces in it.

**Rantor** · 20 June 2007, 07:16

Originally posted by GreenerGrass

And you replied at 8.01. Been up since 5.30am so inane ideas are flying around, are you going to answer then?

9.01 in my office! Sorry about the jibe

it looked like something you'd been up all night thinking about.

Anyway, flogged the house and fled the country other one too complicated to work out now...

**DS23** · 20 June 2007, 07:20

[QUOTE=GreenerGrass]I was thinking of a financial p1ssing contest for today where you don't actually reveal how much you earn or how expensive your house is.....I came up with the car to house value ratio, and we could also add the car to liquid assets ratio.QUOTE]

2.5% and 9%

**GreenerGrass** · 20 June 2007, 07:27

Originally posted by DS23

2.5% and 9%

Thank you, that is good, you can feel pretty smug (although its easy to win this by driving an old banger, the principles still hold good).

Somewhere out there you have an inverse DS23 who drives a blingy M3 convertible and rents a council house. He probably has lots of gold chains as well.

**chicane** · 20 June 2007, 07:29

Erm, 1.8% and 21%.

I don't understand how significant this is though - if I had 50% of the house value, car value and liquid assets, the numbers would be the same but I'd be in a rather less advantageous position in terms of a "financial pissing contest"?

**DS23** · 20 June 2007, 07:38

[QUOTE=GreenerGrass]Thank you, that is good, you can feel pretty smug (although its easy to win this by driving an old banger, the principles still hold good).QUOTE]

true. i traded in the old banger three months ago. would have been .25 and .9 then.

**milanbenes** · 20 June 2007, 07:40

who cares you sad little boyz

Milan.

Car to house value ratios