Asked on 13 Mar 2019
I think that buying a car is definitely not an investment vehicle! It is actually a depreciating asset where it loses value rapidly over time. In fact, there is very little chance that automobiles will appreciate in value.
Singapore is one of the most expensive places in the world to own a car, with COE costing $26,309 (Up to 1600cc cars) and $36,961(Above 1600cc cars) this month. The final average price tag of a car is actually more $110,000. We must also not neglect the necesssary expenditures after owning a car. These include road tax, car insurance, parking and ERP charges, petrol and car servicing costs. Moreover, it maybe cheaper to take a Grab than owning a car!! ( https://blog.seedly.sg/owning-a-car-vs-ride-hailing-apps-which-costs-more-in-singapore/ )
If you ever want to own a car for convenience, it would be wise to purchase it using only cash and not credit to avoid interest charges that can be a substantial amount if the repayment horizon is long.
Maybe you want to monetise it, so that it can be an asset to earn you money. However, based on this article by The Straits Times:
"Almost $2,000 a month for a new car, half that for taxis, and $100 for bus/train option"
It's like almost driving full-time, in order to offset the costs before you can even make a profit. In this challenging climate, a car is best used for leisure than a tool to give you an income.
Car, taxi and bus - how the costs stack up