Asked by Anonymous

How much salary should you be earning before getting a car?

As we all know, buying a car is a huge financial commitment. How do you know when you should get a car?

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  • Jay Liu
    Jay Liu, Diploma in Accountancy at KHEA
    Level 6. Master
    Answered on 18 Sep 2018

    How about considering renting a phv. And do trips before and after your working hours to cover the cost of rental?

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  • HC Tang
    HC Tang, Financial Enthusiast, Budgeting at The Society
    Level 8. Wizard
    Answered on 18 Sep 2018

    Read this for the details breakdown:

    https://dollarsandsense.sg/2018-edition-cost-owning-car-singapore-10-years/

    If you have no time, scroll to the last part and it shows that a Toyota Altis over 10 years period is SGD163,950. So each year is about SGD1,639+/- depends on your usage, lifestyle etc.

    it's really worth considering that if is worth spending 1.6k+ every month just for a vehicle who brings you to places from point A to B, or fetching some things. If you can claim mileage, then the cost might be able to defay a little.

    In general, you would need to earn about 4k per month or so"

    Cost:

    1) CPF $800

    2) Food $500

    3) Insurance $300

    4) Entertainment $300

    5) Basic grooming $100

    6) Savings $400 (which is way not enough!)

    7) you would have to spare 1.6k per month for a car which is a depreciating item (not even an asset to me!)

    The problem is , only manage to save $400 and no investment for future. Thus personally, I think the 1.6k month could have been put to investment for much better future for marriage, housing, retirements etc.

    Do consider about it to get only when you've earn more than 4k and after married with kids, the family / kids or even own parents / folks fetching will requires much more than when one is single. At that point of time, car will be more justifiable or contribute much more towards yourself and the whole family.

    Cheers!

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  • Jeff Yeo
    Jeff Yeo, amateur Social contributor at School of social sharing
    Level 6. Master
    Answered on 21 Sep 2018

    I feel that a peeson should earn about 5 k before considering getting a car in Singapore. The cost of buying, taxes etc is a heavy commitment.

    Consider using public transport and punlic hire cars

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  • Nicholas Chan
    Nicholas Chan
    Level 5. Genius
    Answered on 18 Sep 2018

    Can consider getting a car when you really need it: e. g. Have kids & house not near Mrt. Travelling salesman needing to meet clients.

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  • Jason Sin
    Jason Sin
    Level 5. Genius
    Answered on 18 Sep 2018

    Buying a car is a huge financial commitment and is a liability to the buyer. I would not recommend anyone to buy unless you are financially stable and need the car for family use.

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  • Ze Wei Ng
    Ze Wei Ng
    Level 3. Wonderkid
    Answered on 18 Sep 2018

    A car is a depreciating asset so sometimes I myself wonder if there is a need to get a car.. Unless there's dire job requirements which require for you to be constantly on the road. Otherwise you can derive much savings from public transportation! Car lite SG:-)

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