Asked by Anonymous

My dad wants to buy me my dream car(a jap convertible). He bought my siblings a car each & its tempting to accept it, but it means I have to pay for parking & fuel which costs at least $200 a month ?

I'm 21. This would affect my monthly savings for some long term goals that i am working towards to. Currently saving/investing about 60% of my income. However I think in the future i will never be able to afford this car on my own, so it feels like this will be my only shot of ever owning this car. Should I indulge in this luxury or reject it? He refuses to use the $ to fund my goals (housing) instead of the car as he has already set aside some $ for that but doesnt wanna add anymore to it.

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  • HC Tang
    HC Tang, Financial Enthusiast, Budgeting at The Society
    Level 8. Wizard
    ‧
    Answered on 14 Feb 2019

    Hi. It's so nice and smart of your dad to have plan for cars and house for y'all in times like this. I'm sure you have inherited the good qualities by being sensible also.

    On the other hand, the cost of owning the car will be much more , there's ERP as you use , maintenance and repair and it would have cause at least another $150 to $200 on top of the $200. It's very wise and sensible of you to consider this extra cost of ownership. I think there's 2 way you can consider this :

    1) Thank him, enjoy the car and help him with the car to do errands and stuff. You can make good use of the car, if these extra cost is concern, use it to get some side income to subsidies the extra monthly cost such as being GrabHitch daily etc.

    2) Talk to him and find out why He wouldnt allow you to use the $ instead on funding other things. He must have his reason and next you can share your concern and that maybe you could use this instead on getting first house , ask him to teach you how to invest and budget for it. Use it instead as your investment fund. This not only make even better use of the $, allows you to learn how to grow this $ better, manage finances even better and have more father and son bonding time.

    What's better than learning how to increase and accumulate wealth from your own father and what's not more proud for a successful father to teach his sensible son how to manage and increase wealth ? πŸ˜€

    Cheers and Enjoy either choice, it's good πŸ˜ƒ

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  • Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    Level 5. Genius
    ‧
    Answered on 14 Feb 2019

    Wow, your dad really got it all planned out for you!

    As for the car, these are some expenses you would have to take note:

    1) Fuel

    2) ERP

    3) Parking

    4) Servicing

    5) Car Insurance

    6) Road Tax

    7) Misc stuff like Air Refresheners

    8) IM ASSUMING HE WOULD BE PAYING FOR THE LOAN INSTALMENTS

    Depending on how often you drive, the related cost could come up to about ~$800 but that could be easily subsidised if you diligently do grabhitch everyday (Max of 2 trips) and also start to do some RYDE trips (but not very easy to get matches since lesser people using that platform). Since its a convertible, i guess you can only take one person at a time, so grabhitch x2 can come up to about S$25 of net income for you per day. If you are able to take on more passengers in your car, you can easily double that amount!

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  • Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Level 6. Master
    ‧
    Answered on 13 Feb 2019

    Ask if he can give you cash instead so that you can use the money to make more money. But your dad is pretty nice to you to set aside money for your car and house.

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    • Question Poster
      He has already given me some cash to do that too, but he will not add more cash to that as he says the economy is going to hit recession soon and does not trust me enough yet as I’m still young. Yeah he is great! He wants me to have the car to enjoy my youth,but I myself am not sure if I should β€œenjoy” it to that extent!
      13 Feb 2019