In your honest view, do you think buying a car is a wise (financially)decision in Singapore ? - Seedly
 

SG Budget Babe

Asked by Anonymous

Asked on 14 Aug 2018

In your honest view, do you think buying a car is a wise (financially)decision in Singapore ?

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In Singapore, our transport system is getting more and more robust and convenient.

While owning a car means an entirely different thing in Singapore - the financial status.

If you own a car, it is a liability unless you use it to generate more returns/sales for you, or you have a family and you value family convenience over public transport system.

If not, I would not recommend owning a car in Singapore.

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No.

Costs involved are too high. Often, we forget that beyond the monthly installments, you have to account for petrol, inspection, insurance, parking, maintainence, ERP, and did I mention petrol? Even a 1.6L sedan will likely cost $1500/mth at this point.

Even if you were to get around half of the time by taxis, you actually save the trouble of having to find parking lots, and can even doze off until your destination. With the state of driving in Singapore being this stressful, I'd rather be driven to my destination than drive there myself.

However, there is a possibility that a car may in fact help you since you don't have to rely on PHVs which can be tricky to book during peak periods, your car is always yours to drive as and when you like. So the question would be, compared to a $1000/mth taxi bill, is the $1500/mth you are paying for a car worth the convenience? Some might say yes. There's no right or wrong answer.

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Wallace Chai
Wallace Chai
Level 8. Wizard
Answered 6d ago

It's all depends actually. Most probably you need a car if you have kids or you have to keep travelling from point A to point B (maybe meeting customers). But nowadays with all this ride hailing services, i don't really see the need to having a car.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 20 Sep 2018

Nope, buying a car is for the sole purpose of convenience

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Yanisa Koh
Yanisa Koh
Level 5. Genius
Answered 5d ago

I feel that for regular usage - normal office work and going out on the weekends and in the evenings, it's not really wise. Singapore has one of the most convenient public transport network in the world. It's pretty easy to get around on the bus, mrt and even taxi/private hire vehicles. A car would be wise if your job requires you to be on the move many times in a day.

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It depends on your needs. In general no.

A car is a depreciating asset tagged with a huge set of cost, e.g. insurance, road tax, parking, petrol.

With a well-linked transport system and the rise of tech companies' app, e.g. Grab, it reduces the inconvenience of no transport available.

However, if you have young children or elderly parents, a car definitely serves its purpose well. This alone can trump the financial cost tagged to it.

Here is everything about me and what I do best.

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Eveline Lau
Eveline Lau
Level 6. Master
Answered 6d ago

Nope, a car is depreciates the moment you own it. It's a tool for convenience, that's about it. Even if you do grab rides/hitch with it, most of the money is just to cover the expenses (monthly payment, fuel, insurance, maintenance payment).

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Junus Eu
Junus Eu
Top Contributor

Top Contributor (Nov)

Level 9. God of Wisdom
Answered 6d ago

Definitely not, unless:

  1. You use it as a means to make money, and net-net you are profitable after taking out costs for the car.

  2. You have family members at home (be it elderly or many young kids) who can benefit from the convenience of having a car, instead of having a rely on public transport. That said, it is still a cost.

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Choon Yuan Chan
Choon Yuan Chan
Level 8. Wizard
Answered 6d ago

I have done an analysis before. My answer is a car can make financial sense if you earn $9,000 or more per month. Here is my detailed analysis from my blog:

https://investmoolah.blogspot.com/search?q=car

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VC
Vicki Chng
Level 5. Genius
Answered 6d ago

No. You can cab everywhere and still spend less. Apart from the base price (including COE), there's still your parking, petrol, ERP, maintenance.

A car is a depreciating asset. Sure it's convenient to have, but not a financially prudent choice.

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Isabel Wong
Isabel Wong
Level 5. Genius
Answered 6d ago

No at least not in singapore.

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Mujimoro
Mujimoro
Level 5. Genius
Answered 6d ago

Financially, never a good option.

For convenience only.

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Hwee Kian
Hwee Kian
Level 6. Master
Answered 1w ago

Nope, never a wise financial decision. From the point you buy it, it already start to depreciate. So it's actually a liability in summary.

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Adelyn K
Adelyn K
Level 5. Genius
Answered 1w ago

Financial decision, definitely no.

Even if you use the car to drive Grab and earn a side income, you would still make a loss because of the many expenses that comes with a car.

For practical and convenience, e.g. big family or with small kids or daily groceries, then a car makes for a wiser decision.

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 20 Sep 2018

i do not think that it is a wise decision. a car is a liability. it only depreciates. having a car is like having a huge hole in a bucket of water. you never stop losing money with all the fees that you pay.

however, IF you require a car to, say, meet clients or work with uber, etc, then of course a car is necessary :)

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 8. Wizard
Answered on 20 Sep 2018

No. it's not wise at all unless you're married with kids and have folks to take care, so all the ferrying to preschool/ sitter to and fro, folks to hospital, outings of family, groceries buy and others, with that it might be a bit more justifiable.

Eg.

A Toyota Altis will cost about 1.6k/ month (inclusive of parking, ERP, petrol etc. Ref: https://dollarsandsense.sg/2018-edition-cost-owning-car-singapore-10-years/ ) .

The 1.6k for single would have bring in more returns if is investment or go for studies/ course would have bring back many times more returns.

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The str forward answer is no, due to COE.

But

For Grandma and Parents it will be very convenience to ferry them and save them a lot of waiting time in all kinds of weather.

Like now, such a pouring rain, you can park at a shelter area or carpark to ferry your family rather then getting them wet and running from public transport.

If you have the time and willingness you can do grab hitch or even grab if times and situation allows for some extra income.

Hope my reply helps.

If you feel this reply have Quality, please upvote and check other Quality Reply.

https://seedly.sg/profile/a-kenichi-xi

Thank you.

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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 19 Sep 2018

Depends on what the alternative is. If you must take cab >=4 times a day, then having a car may prove more cost efficient.

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Ck Chai
Ck Chai
Level 6. Master
Answered on 19 Sep 2018

No. Based on general conversation with friends. It is still cheaper to travel with a mix of taxis, bus & MRT vs owning a car that need pay COE, road tax, ins, petrol, parking & maintenance.

You can read some insights in the below article why is it a financial wise decision to go without a car...

https://coolerinsights.com/2015/06/the-day-i-said-goodbye-to-my-car/

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Gabriel Lee
Gabriel Lee
Level 8. Wizard
Answered on 09 Sep 2018

After including all of the usual costs (maintenance, insurance, road tax, parking, petrol, and so on and so forth), you also have to consider potential incidents such as road accidents and fines for traffic offence.

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