Can you afford a car?

[tankahkee]

Excluding CPF.
30% for me.

Fellow drivers.

Want to have a feel when i would be ready to own a car.

How much do you save/invest per month after all expenses ?

 

[RayOfLight]

I highly doubt any AD will allow you to pay in full. They have deals with banks to earn from car loans. You may need to pay some kind of a premium to pay in full cash.

hmm so far kah motor allows me to do that..

 

[edwinttt1978]

is it wise to pay car in full? interest rate is 2.18% from AD.. I don't really do alot of investment, just some blue-chips to collect dividend.. ocbc/uob can get 2+% though.. should I keep the money and collect the interest in uob one/ocbc 360 account or just pay in full? pay in full is quite painful though.. any thoughts?

Yes, pay in full to be as debt-free as possible.

 

[edwinttt1978]

hmm so far kah motor allows me to do that..

Along with Premium Automobiles and Performance Motors.
Cash is king.

 

[edwinttt1978]

I highly doubt any AD will allow you to pay in full. They have deals with banks to earn from car loans. You may need to pay some kind of a premium to pay in full cash.

Usually, the ADs will remove freebies if a loan is not taken. That’s when the art of negotiation comes in.

 

[TheBaldMan]

is it wise to pay car in full? interest rate is 2.18% from AD.. I don't really do alot of investment, just some blue-chips to collect dividend.. ocbc/uob can get 2+% though.. should I keep the money and collect the interest in uob one/ocbc 360 account or just pay in full? pay in full is quite painful though.. any thoughts?

The worse mistake you can do bro.The car is a depreciating asset.Always remember that.In sg,buying is still 10years rental.Unless you are a ricie rich.Then doesnt matter.Nothing else matters when you have money.

 

[gxelan]

my personal rule of thumb: minimally, the price of the car should be approx. your 12-18 mths of your pay. It might be conservative, but it gives better peace of mind. And the golden rule still applies... i.e. you still have sufficient savings for 6 -12 months at least.

this, i kinda agree on that general rule of thumb

 

[hachi]

this, i kinda agree on that general rule of thumb

Always 10% of your pay based on 10 years Coe.

 

[loneness15]

is it wise to pay car in full? interest rate is 2.18% from AD.. I don't really do alot of investment, just some blue-chips to collect dividend.. ocbc/uob can get 2+% though.. should I keep the money and collect the interest in uob one/ocbc 360 account or just pay in full? pay in full is quite painful though.. any thoughts?

Most importantly is make sure that you have sufficient savings for your rainy days. Don't ever just throw all your money in just for a car. not worth it

 

[hachi]

Most importantly is make sure that you have sufficient savings for your rainy days. Don't ever just throw all your money in just for a car. not worth it

Good advise. I have no problem cashing out a cheapest new car but choose to renew mine for 5 years online and in cash. Better save for the rainy days and put some cash to FD.

 

[kazuki666]

I was checking out with my colleagues on buying a car. He was recommending me to get Mitsubishi Attrage, can get at $60k now. As i have not own a car before this, can someone work out the maths with me what are the cost I may be looking at in total? I don't mind paying 2/3 as cash down payment, but I am not sure what are $$$ I need to be mindful of.

Reason why I am considering a personal vehicle because I be changing work, and the location is about 25km (drive) from my home, which makes 50km to fro a day. If I take train & bus, it takes at least 1.5hrs per trip...

 

[hachi]

I was checking out with my colleagues on buying a car. He was recommending me to get Mitsubishi Attrage, can get at $60k now. As i have not own a car before this, can someone work out the maths with me what are the cost I may be looking at in total? I don't mind paying 2/3 as cash down payment, but I am not sure what are $$$ I need to be mindful of.

Reason why I am considering a personal vehicle because I be changing work, and the location is about 25km (drive) from my home, which makes 50km to fro a day. If I take train & bus, it takes at least 1.5hrs per trip...

1.2k per month if you are paying installment. After finished the installment assume you down 2/3, maybe 600 or so per month.

 

[kazuki666]

1.2k per month if you are paying installment. After finished the installment assume you down 2/3, maybe 600 or so per month.

hmm... 1.2k may be beyond my poor pocket le. I still thought if 60k, i loan 20k for 7yrs can tahan less than $500 a month... LOL

Thanks for the advice anyway.

 

[hachi]

hmm... 1.2k may be beyond my poor pocket le. I still thought if 60k, i loan 20k for 7yrs can tahan less than $500 a month... LOL

Thanks for the advice anyway.

Car park 110
Petrol 200
Erp 50
Insurance and Rd tax break down to monthly 200
Maintenance 50
I think around there.
Actually without 1k per month to depre, hard to own a car. My coe car depre at 400 per month, plus all the above, also aorund 1k.

 

[TOKARA]

The worse mistake you can do bro.The car is a depreciating asset.Always remember that.In sg,buying is still 10years rental.Unless you are a ricie rich.Then doesnt matter.Nothing else matters when you have money.

not advisable to pay full?

 

[hachi]

I alway pay in full. Leave some for rainy days.

 

[TOKARA]

I alway pay in full. Leave some for rainy days.

thats what my wife insist, if can afford...pay in full unless u know how to invest the difference

 

[kazuki666]

Car park 110
Petrol 200
Erp 50
Insurance and Rd tax break down to monthly 200
Maintenance 50
I think around there.
Actually without 1k per month to depre, hard to own a car. My coe car depre at 400 per month, plus all the above, also aorund 1k.

I alway pay in full. Leave some for rainy days.

thats what my wife insist, if can afford...pay in full unless u know how to invest the difference

On the topic of paying full. If say Attrage is 60k now and i choose to pay in full, will I get a better or inferior deal? but then again, the rest of cost like hachi is quoting, i think i cannot afford the monthly cost also le...
That amount is more than enough for me to grab to work.,,

 

[TOKARA]

i just chk today, if no trade in, no need loan, attrage cost $70k

if got trade in, no loan, $65k

if trade in + take loan for 7 yrs, $60k

 

[hachi]

i just chk today, if no trade in, no need loan, attrage cost $70k

if got trade in, no loan, $65k

if trade in + take loan for 7 yrs, $60k

Then don't bother. I will go for note, k3, elantra and etc.