Can you afford a car?

[blues7]

Currently driving Nissan Latio sports

Coe expire very soon in a few months

Still undecided, buy new, renew coe, scrape car - get back parf - switch to public transport

Don't think monthly will increase

Have one kid - preschool age

Have 2 parents who are seniors - father may not be driving after a few more years

 

[blues7]

Buy already?

The price is very good

Hi guys,

Just quick question. My current take home is approx. 2.6k/month with no family commitment. New driver however already have license for 2 years if it helps. No issues with having to pay 30% down payment as will still have enough savings for emergency.

Looking to purchase a brand new Honda Vezel Hybrid @ $109800. Anyone can advice if it's possible for me to own it?

 

[BiomedicalPasta]

My takehome 2.4k, transport allowance 1k.
Planning to get a 2nd hand. Can down probably 12k.
My plan is monthly installment taken care of by my car allowance. 400 for car related expenses, 800 for savings, 500 mandatory bills, So around 700 bucks for spending. Should be good plan la hor.

Single, no commitment yet.

 

[blueodyssey]

My takehome 2.4k, transport allowance 1k.
Planning to get a 2nd hand. Can down probably 12k.
My plan is monthly installment taken care of by my car allowance. 400 for car related expenses, 800 for savings, 500 mandatory bills, So around 700 bucks for spending. Should be good plan la hor.

Single, no commitment yet.

If you are getting a car with OMV 20K and below, you can take a loan up to 70% of the car price and put a downpayment of 30%.
Unless u take a private financing scheme...

So budget for your second hand car is around 40k.

Assuming:
Car = $40,000 (After nego)
Downpayment = 30% * $40,000 = $12,000

Loan = 70% * $30,000 = $28,000
Assuming you take 2.5 years loan, interest @ 2.98%
Interest = 2.98% * $28,000 * 2.5 years = $2,086
Monthly Installment = ($28,000+ $2,086) / 30 months = $1003 (approx)


Monthly Expenses:

Installment $1003

Road Tax = $50 (Assumption)

Season Parking = $120

Insurance = $2,800/12 = $234 (Assumption)

Petrol = $250

Cashcard/Coupon = $50

Tyre = $22 (Assume you change tyre and do alignment every 18 months, each tyre about $100)

Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

Total Running Cost $776 per month (excluding installment)
$400 for car expenses is insufficient. You probably miss out some costs.

Just curious... not travel savings? What happen if you like to do so or perhaps buy something (e.g. change a new phone, some clothes, etc)?

Honestly, too risky. I think u need to reconsider.

 

[BiomedicalPasta]

The way I budget, those big one time payment I will not factor in monthly. I can clear insurance, road tax yearly using savings.

Maybe I switch lo,700 for the running cost while 400 as spending. Good month keeep the running cost down can have abit more to spend.

 

[blueodyssey]

The way I budget, those big one time payment I will not factor in monthly. I can clear insurance, road tax yearly using savings.

Maybe I switch lo,700 for the running cost while 400 as spending. Good month keeep the running cost down can have abit more to spend.

I always break the cost down to monthly basis. It gives me a clearer picture how much I need to set aside per month even for those one time payments such as insurance and road tax.
Since you relying on savings for insurance and road tax, you are not doing a full budgeting for your car right? So 800 isn't your true savings.

Seems like you are stretching yourself to own a car. Maybe I am wrong but I suggest you review your budgeting?

 

[Genesis]

aiya, take car liao go do u/g la.. if die die need to have car

 

[straweffigy]

The way I budget, those big one time payment I will not factor in monthly. I can clear insurance, road tax yearly using savings.

Maybe I switch lo,700 for the running cost while 400 as spending. Good month keeep the running cost down can have abit more to spend.

No offence, but your scenario looks very tight financially. Touch wood but what if your job security is in question in the future?

Car ownership have some unforeseen costs that may rack up quickly if you're not careful, like accidents, maintenance repairs of car.

 

[BiomedicalPasta]

Yup. I think at my pay bracket, it will be tight monthly despite the coy car allowance.

Maybe a year later ba.

 

[blueodyssey]

That will be a better choice.

When u are ready to fork out about 1.2-1.3k per month for car expenses (provided you have a considerable amount of downpayment) without making much sacrifices in your current lifestyle... you can start exploring.

 

[Beginner Bin]

COE will go higher to 50k zone or lower to 30k zone any suggestion?

 

[~WindzStriker~]

such a noob here and would appreciate all brothers to help me to see if i should renew COE.

My dad's car is a Toyota Vios 1.5L
Expiring this Nov 2017.

This car hardly use at all during its 6-8.5 years of life. only past 2 years recently every day drove.

We dont know whether to renew or there are better options.

basically take home combined between my wife and I around $6K

we have an infant and also house loan $1100 per month.

Service, pump petrol, all done in JB, almost every week go in once. never pump in SG

I really dont know how to calculate, as I never buy car before, afterall is my dad settled everything. Appreciate all brothers' feedback, I wana learn. =)

 

[blueodyssey]

such a noob here and would appreciate all brothers to help me to see if i should renew COE.

My dad's car is a Toyota Vios 1.5L
Expiring this Nov 2017.

This car hardly use at all during its 6-8.5 years of life. only past 2 years recently every day drove.

We dont know whether to renew or there are better options.

basically take home combined between my wife and I around $6K

we have an infant and also house loan $1100 per month.

Service, pump petrol, all done in JB, almost every week go in once. never pump in SG

I really dont know how to calculate, as I never buy car before, afterall is my dad settled everything. Appreciate all brothers' feedback, I wana learn. =)

If the car is in good condition, renewing is definitely the cheapest option.
However, you need to pay the PQP in full cash.

Toyota vios is a problem free car. Great for coe renewal too as you will not lose too much a parf value as the car have a low OMV to begin with.

The current Cat A PQP is about $48k. If you are able to fork out this sum without causing too much hurt to your pocket, it will be good to have this car renewed for another 10 years as the renewal can only be done once. Should you decide to change the car before the 10 years is up, you can get back the pro-rated COE rebate. If you choose to renew for 5 years, the car must be scrapped when the COE is due.

Monthly Expenses:

Installment $0

Road Tax = $684/12 = $57

Season Parking = $120

Insurance = $1,800/12 = $150 (Assumption)

Petrol = $120 (Since u pump in JB)

Cashcard/Coupon = $150 (Including tolls incurred for ur JB trips)

Tyre = $20 (Assume you change tyre and do alignment every 18 months, each tyre about $70)

Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

Total Running Cost $667 per month
Factoring in the $48,000 for the 10 year coe renewal...monthly is about $400
Total Cost of Car Ownership $1067

Hope this gives u a rough idea.

 

[hachi]

If the car is in good condition, renewing is definitely the cheapest option.
However, you need to pay the PQP in full cash.

Toyota vios is a problem free car. Great for coe renewal too as you will not lose too much a parf value as the car have a low OMV to begin with.

The current Cat A PQP is about $48k. If you are able to fork out this sum without causing too much hurt to your pocket, it will be good to have this car renewed for another 10 years as the renewal can only be done once. Should you decide to change the car before the 10 years is up, you can get back the pro-rated COE rebate. If you choose to renew for 5 years, the car must be scrapped when the COE is due.

Monthly Expenses:

Installment $0

Road Tax = $684/12 = $57

Season Parking = $120

Insurance = $1,800/12 = $150 (Assumption)

Petrol = $120 (Since u pump in JB)

Cashcard/Coupon = $150 (Including tolls incurred for ur JB trips)

Tyre = $20 (Assume you change tyre and do alignment every 18 months, each tyre about $70)

Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

Total Running Cost $667 per month
Factoring in the $48,000 for the 10 year coe renewal...monthly is about $400
Total Cost of Car Ownership $1067

Hope this gives u a rough idea.

Good estimation, I guess you must factor in the additional road tax. It should not be over $1200 per month.

 

[blueodyssey]

Good estimation, I guess you must factor in the additional road tax. It should not be over $1200 per month.

Oh ya I forgotten about the road tax surcharge.
So base on $684

Upon renewal
More than 10 years 10% > 752.40 per yr 62.7per mth

More than 11 years 20% > 820.80 per yr 68.4per mth

More than 12 years 30% > 889.20 per yr 74.1per mth

More than 13 years 40% > 957.60 per yr 79.8per mth

More than 14 years 50%> 1026.00 per yr 85.5per mth


Still affordable lah imo.

 

[soulmad]

such a noob here and would appreciate all brothers to help me to see if i should renew COE.

My dad's car is a Toyota Vios 1.5L
Expiring this Nov 2017.

This car hardly use at all during its 6-8.5 years of life. only past 2 years recently every day drove.

We dont know whether to renew or there are better options.

basically take home combined between my wife and I around $6K

we have an infant and also house loan $1100 per month.

Service, pump petrol, all done in JB, almost every week go in once. never pump in SG

I really dont know how to calculate, as I never buy car before, afterall is my dad settled everything. Appreciate all brothers' feedback, I wana learn. =)

Vios may be a hardy car to last you another 10 years, but it's definitely not among the safest on the road. 2 air bags, no VSC, dated crash standard from last decade. It's almost certain that you would be on the receiving end of it when hitting/hit by a new car.

 

[mel1888]

If the car is in good condition, renewing is definitely the cheapest option.
However, you need to pay the PQP in full cash.

Toyota vios is a problem free car. Great for coe renewal too as you will not lose too much a parf value as the car have a low OMV to begin with.

The current Cat A PQP is about $48k. If you are able to fork out this sum without causing too much hurt to your pocket, it will be good to have this car renewed for another 10 years as the renewal can only be done once. Should you decide to change the car before the 10 years is up, you can get back the pro-rated COE rebate. If you choose to renew for 5 years, the car must be scrapped when the COE is due.

Monthly Expenses:

Installment $0

Road Tax = $684/12 = $57

Season Parking = $120

Insurance = $1,800/12 = $150 (Assumption)

Petrol = $120 (Since u pump in JB)

Cashcard/Coupon = $150 (Including tolls incurred for ur JB trips)

Tyre = $20 (Assume you change tyre and do alignment every 18 months, each tyre about $70)

Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

Total Running Cost $667 per month
Factoring in the $48,000 for the 10 year coe renewal...monthly is about $400
Total Cost of Car Ownership $1067

Hope this gives u a rough idea.

Not forgetting basic maintenance. Should be cheap for vios. +50?

However if u get knocks, repair might burst yr buget.

 

[blueodyssey]

Not forgetting basic maintenance. Should be cheap for vios. +50?

However if u get knocks, repair might burst yr buget.

It has been included:
Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

If servicing is done once every 6 months... that's $300... should be sufficient.
But of course there should be buffer for unforeseen damages.

 

[kzonexx]

If the car is in good condition, renewing is definitely the cheapest option.
However, you need to pay the PQP in full cash.

Toyota vios is a problem free car. Great for coe renewal too as you will not lose too much a parf value as the car have a low OMV to begin with.

The current Cat A PQP is about $48k. If you are able to fork out this sum without causing too much hurt to your pocket, it will be good to have this car renewed for another 10 years as the renewal can only be done once. Should you decide to change the car before the 10 years is up, you can get back the pro-rated COE rebate. If you choose to renew for 5 years, the car must be scrapped when the COE is due.

Monthly Expenses:

Installment $0

Road Tax = $684/12 = $57

Season Parking = $120

Insurance = $1,800/12 = $150 (Assumption)

Petrol = $120 (Since u pump in JB)

Cashcard/Coupon = $150 (Including tolls incurred for ur JB trips)

Tyre = $20 (Assume you change tyre and do alignment every 18 months, each tyre about $70)

Servicing Maintenance $50 (Do set aside ample sum for replacements due to wear and tear, especially for used car)

Total Running Cost $667 per month
Factoring in the $48,000 for the 10 year coe renewal...monthly is about $400
Total Cost of Car Ownership $1067

Hope this gives u a rough idea.

wow bro, this is a very comprehensive calculation. impressive!
over 1k for a COE car. Now I'm afraid to calculate mine lol

 

[Andy0601a]

such a noob here and would appreciate all brothers to help me to see if i should renew COE.

My dad's car is a Toyota Vios 1.5L
Expiring this Nov 2017.

This car hardly use at all during its 6-8.5 years of life. only past 2 years recently every day drove.

We dont know whether to renew or there are better options.

basically take home combined between my wife and I around $6K

we have an infant and also house loan $1100 per month.

Service, pump petrol, all done in JB, almost every week go in once. never pump in SG

I really dont know how to calculate, as I never buy car before, afterall is my dad settled everything. Appreciate all brothers' feedback, I wana learn. =)

my ride expiring in Nov as well, headache.

all the best in your car ownership journey!