Can you afford a car?

[tortoise18]

Prices here include coe already?
https://m.sgcarmart.com/used_cars/listing.php?BRSR=75&PR1=20&PR2=50&FR=2013&TO=2016&ASL=1

Maybe 2nd hand car better, to use for the next 3-5yrs?

 

[batniss]

Hi bro. You have a kid or planning to have one? I suggest not to get a car. 5.5k, you bring back about 4.4k and using this to support your family, and also your parents.

I am 31, earning 9.8k, bring back 8.6k.Wife, 36, earns about 6.2k, she bring back 5k. But even with our income, we feel its not enough. I bought a BMW, paying about 850, but I wish that I didn't buy this car and invested more on my son instead.

Roughly my breakdown:
Parents, 800,
household 2k,
wife 500,
Car 850,
Diesel 80 (rarely drive as I work from home) only top up like once every month for full talk.
Investment 1000 (mid risk)
Insurance 700(paying for my wife, kid and myself)
Some insurance savings plan 300 (low risk)
Top up cpf OA 200-400(See mood but min 200), I top up just in case I kanna fire at least my house loan can be service.
Top up child CDE 500
School loan 330
Others misc dunno how much

I know my expenses about 7k+ monthly, which leaves me about 1.5k. Even with 1.5k excess, I still feel not enough. At 5.5k, I suggest better not. Once u have a kid, you will feel the strain staring from when he's in your wife womb at 6th month. The medical checkup, delivery fees are a bomb.

I think for singles, to be comfortable in owning a car.. Erm, 7k is good. But for couples, combined 10k+, with small child, 14k+

Please also have 6 months of cash excess equivalent to your current pay. U never know what will happen now with the covid 19.

Honestly, don't buy lah.

u have investment and misc that you should include in part of your savings.
while i appreciate you share how you spent your $, everyone priorities could be different. U put in so many redundancy pockets you claim u left 1.5k.. like that even u earn 100k/mthly also not enough coz everything will just scale upwards.

Above is a joke.

 

[Ohyaitsme]

I'm keen to know too! I earn $4.8k but still wonder to buy car or not. I travel around for work daily, grab cost about $40.

still cheaper then owning a car
no liability no debt
cash is king

 

[Ohyaitsme]

Prices here include coe already?
https://m.sgcarmart.com/used_cars/listing.php?BRSR=75&PR1=20&PR2=50&FR=2013&TO=2016&ASL=1

Maybe 2nd hand car better, to use for the next 3-5yrs?

yes 2nd hand car is better.
I suggest you go look for a car which COE is expiring soon. renew another 10 years and pay full cash. best bang for your buck.

COE renew-33k
car less than year-16k
pay 49k for the next 10 years

 

[tortoise18]

yes 2nd hand car is better.
I suggest you go look for a car which COE is expiring soon. renew another 10 years and pay full cash. best bang for your buck.

COE renew-33k
car less than year-16k
pay 49k for the next 10 years

Wah but like tt the car so old lol.. Maintenance don't know how much..
Looking at 6yr old mercedes B180 2nd hand $50k, or pay more for hrv vezel better? I like the idea of a suv

 

[MrSinkie95]

Buy attrage...

 

[batniss]

still cheaper then owning a car
no liability no debt
cash is king

yeah you are right

how u measure time and convenience with $? is there a matrix for it?

not everyone values $ as king. u shouldn't be in this thread if cash is king - ur reason here make me puzzled.

 

[whoami.7]

Car is a liability

 

[tortoise18]

For me as i need to travel for work, 5-6 trips a day, more worth to get a car isn't it?

 

[warr]

Car is a liability

+ luxury item in SG
+ only an appliance of from point A to B
+ huge financial liability
+ driven at turtle speed in SG road

Just install a good racing simulator at home and enjoy SIM racing. much more fun driving at very realistic level, and much cheaper than a real piece of scrap metal.

 

[Ohyaitsme]

For me as i need to travel for work, 5-6 trips a day, more worth to get a car isn't it?

Need pay car loan + interests over 7 years.
Car depreciate over time. Loses 60 percent of its value after 5 years
Maintenance. Parts wear and tear over time

Car is a liablility!!!

 

[cryptocraft]

Thinking of getting first car, current pay 6400 monthly, going into new job at 8600 a month; just tender. Wife earns about 3500, we have no kids and we keep our finances separate.

Looking towards comfort, any recommendations?

 

[batniss]

Thinking of getting first car, current pay 6400 monthly, going into new job at 8600 a month; just tender. Wife earns about 3500, we have no kids and we keep our finances separate.

Looking towards comfort, any recommendations?

Sedan, MPV = comfort
SUV and etc = sporty.. comfort have but... not many people will enjoy the suspension etc.

 

[kelvinang]

Thinking of getting a second hand car (for the first time), not sure if I am reading it correctly?

https://www.sgcarmart.com/used_cars/info_financial.php?ID=874950


If I scrap before Nov 2023, say in Oct 2023 - does it mean I get back $29,306 in cash? Assuming the loan is paid off by then.

Is it right to think of it as owning the car for approx 3 years plus and "getting back" my downpayment in the beginning ($25,564)?

 

[MisterAtoZ]

Yes, plus one month of COE (83k/120).

You may also think of it as (80k-30k)/3 1/3 years = 15k/year depreciation.

 

[soulmad]

Thinking of getting a second hand car (for the first time), not sure if I am reading it correctly?

https://www.sgcarmart.com/used_cars/info_financial.php?ID=874950


If I scrap before Nov 2023, say in Oct 2023 - does it mean I get back $29,306 in cash? Assuming the loan is paid off by then.

Is it right to think of it as owning the car for approx 3 years plus and "getting back" my downpayment in the beginning ($25,564)?

1st time car owner not advisable to get 7yr old beemer.

 

[koxinga]

He say first time buying used car, not first time car owner.

Stil, 7 yr BMW is a risky proposition.

 

[junlove]

most pple do not calculate how much you can really save with older cars. Typically 9/10 ppl will quote "don't buy old cars due to higher maintenance and repairs", with stories to 'back up' which are actually not based on statistics/probability, more like coffee shop talk..

A new car's warranty is only relevant for the "unlucky but lucky ones" (suay kenna but covered by 'insurance') as it only covers major components (transmission, engine, aircon etc) for first few yrs/specified mileage. Those parts are not expected to fail, the probability is low for new cars which is why they can give you the 'insurance plan'. For parts which will need to be change periodically anyway, there are no significant delta in cost avoidance compared to older cars.

For older cars, yes the frequency of worn out parts is higher, but barring high costs items highlighted earlier, the costs are not significantly higher if you choose to go non-dealer/independent workshops, or even buy parts online yourself. Try to know your car better.

If you compare 5 yrs horizons. e.g. either buy new car drive 5 yrs, buy second hand drive 5 yrs, or buy COE car drive 5 yrs. The real costs can be 3:2:1 (real depreciation), even after accounting for say, 10k overhaul for older cars. (for example, a basic BMW 5 series can be easily 30k depreciation per yr for first 5 yrs, second hand maybe 17k, COE one only 8k)

The only problem is, TIME. Rich ppl dislike going to workshop more often, even though maybe not really significantly more compared to new cars...

Personally, i think the sweetest spot is to own 2/3 yrs old cars till 7/8 yrs old. i.e. in a 20yrs horizon, better to own 4 times second-hand car, than 4x new car drive 5yrs, or 2x new cars drive till COE expires. Also, i would avoid turbocharged... mostly abused

 

[soulmad]

He say first time buying used car, not first time car owner.

Stil, 7 yr BMW is a risky proposition.

He asked about how parf works..that question lands in first time owner territory

 

[star89]

We bought new car because we don't know how to maintain the car. Scared that if buy second hand car, workshop said need to change this and that. In the end, spend $10-20k for changing the spareparts and only drive for few years.

For the next car, I will still buy new car. Bread and butter car is most economical. However, the comfort and satisfaction is not there. Meaning to say, the car is not so responsive to overtake other car. Have to see first what car that I want to overtake.

The lowest range of European car VW, Skoda are quite responsive. Comfort driving. A bit pissed of the customer service of European brand of our washing machine recently, it make me hesitating to commit a European car.