I'm a fresh grad that just started my first job. Should I get a car? - Seedly
 

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Asked by Anonymous

Asked on 05 Aug 2019

I'm a fresh grad that just started my first job. Should I get a car?

My work requires 4 hours of transportation every day (2 hours each way) as it's at Jurong Island. If I drive, I might be able to save the 2 hours every day. Is it worth it to get a car to save that 2 hours? Or should I just tahan and save up the money?

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I did fiddle with that thought also when I started work many years ago, but eventually I decided that cash is king and I'd be better off having cash than burning it. Nowadays however, I do hear of people utilizing grabhitch which may be a better option than buying a car outright.

A car will probably cost close to $2K/mth to maintain (loans, insurance, maintainence, petrol, ERP, etc), so don't underestimate the cost of having one. I'd say as a rule of thumb that if your annual income is in the top 35% of income earners in Singapore, you may consider one.

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I have a car and I have friends who also pondered that question. Generally if you work at Jurong Island, and your pay should be quite ok, I would say if you like driving and your work hours are irregular “shift work”, getting a car might make sense. And you have have more control over your time.

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 07 Aug 2019

As a fresh grad, your primary objective would be to clear off your study loans (assuming you have them), and not accumulate more loans. This is because you'll likely be making some very heavy purchases within the next few years, such as a house, wedding, etc, and you'll need to save up for these.

You'll also need to consider whether a car is worth it. Are the 2 hours worth the ~$2k that you'll be spending each month? Can you be productive in the 2 hours saved everyday? You can also consider doing something productive during the 4 hours spent on commuting everyday, such as reading self-help books, or researching on investment product :)

Alternatively, you can consider grabhitch, grabshuttleand the likes.

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JW
jiajing wang
Level 4. Prodigy
Answered on 07 Aug 2019

I would have thought renting a room at west might work better than buying a car though..,Anyway, since you are a fresh graduate and fresh into the working life, you could be very enthusiastic about your job which in turn,will result in you doing more OTs, which would make sense for you to get a car since it's a long way drive back home.. Note that bus to jurong Island are not very accessible and the frequency is long. If all these troubled you, then u could really consider getting a car(2nd hand car is fine) and think of ways to maximize your car usage like grabhitch only if you met the requirements

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Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Updated on 07 Aug 2019

Does the company provide transport like company bus? Perhaps can check if there are private buses doing that route. Or are there transport claims allowable?

Getting a car depends on your salary and whether you can afford it.

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Gabriel Tham
Gabriel Tham

06 Aug 2019

Perhaps can find a hitch, colleague that is on the way to give u a lift? Like maybe a colleague stays in west side but if you can get a lift from the west side MRT to jurong island you just need to take the MRT from east to west MRT. https://blog.seedly.sg/buy-car-how-much-should-be-earning/
Ben Ng
Ben Ng

07 Aug 2019

Get a second hand car (COE below 2 years) and probably offer grab hitch in the process. I am sure there will be a pretty high demand for hitch services in that area. Nevertheless, do some Financial Planning and ensure that you are still on track to hit your Financial goals despite owning a car.