Monday 31 August 2015

How much Do I need to own a car in Singapore

This is a very common question in Singapore. You can browse through popular forum like hardwarezone and you will notice that there is a sticky post in the car section because every now and then, someone will ask for advices on how much do I need to earn before I own a car in Singapore..!!!

Everyone plans their budget and everyone have commitments. Could be phone bills, renovation loans, allowances to your parents etc etc. 

For I can only give you my perspective, it is up to you to decide whether if it is applicable to you. 

Like any newly wed couples, we got our Reno loans, bills and other monthly misc credit card bills piling up every month, waiting for me to clear. 

When my wife and I decided to buy a car, it was purely for convenience sake. We travel to our parents place 4 times a week after work and grocery shopping is always a chore since we had to take the train/bus to the central of the estate. So anyhow, we worked out math and we decided to take the chance.

Please note that the below is based on a resale car of 8 years old, 1.5L:

Monthly loan : $900 
Annual Road tax : $556 ($46 per mth)
Monthly Petrol : $280 (after disc)
Monthly Season Parking : $160 (multi storey + office hdb parking)
Monthly Insurance : $142 (if you know how to choose the correct insurance, FYI- I am a first time driver)
Monthly Cash card top-up : $90 (send wife to work + visit to parents place)

All in all, the magic round number is $1,600. Of course there are cheaper car model. You can look out for QQ or picanto. But, $1,600 should be the figure if you plan to own one.

Of course you got your car servicing/maintenance which I have yet to factor in but if you choose a reliable car, it shouldn't require much maintenance. Just some parts here and there. 

Downpayment as well! So I suggest for couples who plan on buying a car, buy it when you receive your year end bonus or both of you plan a 1year saving agreement and each save $500 per month to pay the Downpayment.

To own a car these days is a luxury. So I am considered fortunate enough to be able to afford one. Praise God. 

Till then..

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