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

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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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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John
John

07 Mar 2020

Why u answer No in the first place and then at the end of your answer you wrote thereis no right or wrong answer so contradicting
Elijah Lee
Elijah Lee

07 Mar 2020

No is my own honest view as that is what the question asked. But for others, there may be a value to it, as I have explained in my last paragraph.

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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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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Junus Eu
Junus Eu
Level 9. God of Wisdom
Answered on 05 Dec 2019

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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Wallace Chai
Wallace Chai
Level 9. God of Wisdom
Answered on 05 Dec 2019

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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MT2020
MT2020
Level 7. Grand Master
Answered on 06 Mar 2020

If a car can help you to generate income or if you work in a sales industry where you need to travel to different locations to meet clients, then yes. If not, our public transport system are just as good to bring you from one place to another.

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SO
Sj Oh
Level 5. Genius
Answered on 06 Mar 2020

No.

The transport system will get better and better.

Perhaps try calculating the cost of taking Grab with car and make a comparison.

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Andy Sim
Andy Sim, HR Professional at a Financial Institution
Level 7. Grand Master
Answered on 06 Mar 2020

As what the others have mentioned, there are too many costs to buying a car till it makes no sense financially to own a car. Moreover it's a depreciating asset to hold.

But that being said, I'd consider getting a 2nd hand car next time when I have kids which I can use to ferry them to and from places. That will probably be the only reason why I'll own a car.

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Rais M
Rais M
Level 7. Grand Master
Answered on 05 Mar 2020

Cars in Singapore are very expensive due to COE. Besides the cost of purchasing the car and its monthly installments, there are also so many other costs to take note of. For example, repair and mainteance, car park, insurance, fuel, beautification of the car, etc. And what if you had an accident, regardless if it is your fault or not. There's another set of cash out flow.

While it may be convenient to own a car as you could potentially save time from getting from point A to B, many actually forgot about the challenges faces when there is a jam or finding parking lots. On average, I would believe it makes no difference in time saved over the long term.

In fact, with Singapore transport network, I would believe it is very convenient to get to almost everywhere.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered on 05 Mar 2020

My honest view is, that i was shocked a bit, how all these SG kind if fees, taxes and licenses add up to immense costs, and then You have to dispose if your car finally by regulation (rare in capitalism). However all this was/is a goid thing to decrease pollution, waste and traffic jams. This is rationing, which will also someday be implemented in different sectors (cars, health care, plane rides to far countries) in other countries. From a democratic view it could be criticized that only the rich can afford all this in currently in the future (like before the industrial revolution), but all the mass wealth the western style countries enjoyed now for decades nowadays is not sustainable. As much as we all of course like the capitalism economic system, we should reduce a bit out consumerism and try to get more value out of social relations and intact nature.

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Yanisa Koh
Yanisa Koh
Level 6. Master
Answered on 06 Dec 2019

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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Eveline Lau
Eveline Lau
Level 6. Master
Answered on 05 Dec 2019

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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Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 05 Dec 2019

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 6. Master
Answered on 05 Dec 2019

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 6. Master
Answered on 05 Dec 2019

No at least not in singapore.

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Mujimoro
Mujimoro
Level 5. Genius
Answered on 04 Dec 2019

Financially, never a good option.

For convenience only.

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Hwee Kian
Hwee Kian
Level 7. Grand Master
Answered on 04 Dec 2019

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 on 04 Dec 2019

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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