Family income below $7,650? You can't afford a car

[Picanto]

If you're thinking of buying a car but your combined family income is below $7,650, think again.

 

According to a local website salary.sg run by a finance manager, $7,650 is the minimum income needed to afford a car.

 

Most families are not able to afford cars because the cost of car ownership does not only include the price but also the miscellaneous fees such as road taxes, car insurance and servicing, said the website.

 

A small saloon will cost around $50,000. The more aspirational may go for a family MPV, which can go up to $80,000 or more.

 

According to the Singapore Department of Statistics, 38 per cent of the households here own a car. The top 38 per cent highest-earning households also make more than $7,650 a month.

 

Salary.sg said that the 38 per cent of the households which own a car may not be the same 38 per cent that form the highest-earning households in Singapore.

 

But it went on to explain that this group of highest-earning households are most capable of owning a car and therefore, it stands to reason that $7,650 is a reasonable guideline for car ownership.

 

Mr Wu, the person behind the site, told Chinese daily Shin Min that a family should retain 50 per cent of their income as miscellaneous expenses, education fees etc.

 

The other 30 per cent would be taken up by a housing loan.

 

Then, car expenses should not total to more than 20 per cent, he said.

 

BAR TOO HIGH?

 

But is the bar of $7,650 too high?

 

 

The director of a parallel importer company apparently thinks so.

 

He told Shin Min that $7,650 should be the minimum combined income to buy a Continental car like Mercedes-Benz or BMW.

 

But with regards to cheaper cars, monthly expenses should not total more than $1,000.

 

"If the person has a minimum income of $2,000, he can consider buying a car," said the director.

 

And if the cheaper alternative is still too expensive, then the person should consider a second-hand car, added the director.

 

 

[Kspchew]

"If the person has a minimum income of $2,000, he can consider buying a car," said the director.

 

And if the cheaper alternative is still too expensive, then the person should consider a second-hand car, added the director.

 

Should consider B.M.W (Bus, Walk, MRT) with 2k income. No savings plan for retirement?

[Rickster]

Of course the PI would say anything so as to get pple to buy cars.

[Sw20]

Who cares what other thinks if you are in the position to buy a car or not?

it boils down to you.

 

if you think your 2k can buy a car with $400 monthly.... then about $600 monthly a side on running cost... then you have $1000 to spend....

Why not??? Cos some people only take home $1000.....

 

So it boils down to you and your lifestyle...

 

Cheers...

[Joseph22]

This also base on own lifestyle lah.. i believe he is assuming that those in that bracket all leave in condo. if not how do we explan 30% into house loan. me and my wife dont even spend 10% in our hsing loan and all pay via CPF.

[Axela72]

So may I know what is the typical price range of the car can a salary with $7650 purchase?

[Byond]

i think they not yet factor in CPF contribution leh

 

[Picanto]

its just the author's personal opinion. we dun have to agree with what he writes. even if the combined family income is $8000, and if the family have very heavy commitments, then also tough to own and maintain a car.

[Windchoco]

It is all abt comfort level.

 

B4 buy car, just cal how much u will need for car expenses every month, and set that aside for 3 consc. months.

 

If you feel comfortable throughout this next 3 months, then whats the problem?

[Picanto]

It is all abt comfort level.

 

B4 buy car, just cal how much u will need for car expenses every month, and set that aside for 3 consc. months.

 

If you feel comfortable throughout this next 3 months, then whats the problem?

 

 

sometimes things may not turn out as planned.

[Khimwoon]

imho... this gauge is pretty accurate for a safe guide for those wanting to get a normal jap/kor sedan ard 50k to 60k range...

 

cos we all know that with car loan and other fees... a simple car can take up abt 1.2k to 1.5k monthly easily...

 

this is how i going to gauge for my family... in term of a combine take home pay of 7k which is quite reasonable for a normal young couple...

 

1. housing loan - CPF (heng got cpf)

 

2. household misc like electricity, internet bill, phone bill, mobile bill, scv bill, fire insurance etc etc - 20% @ 1.4k

 

3. car - 20% @ $1.4k

 

4. spending money including couple own insurance, entertainment etc - 20% @ 1.4k

 

5. reno loan, electrical stuff instalment - 20% @ 1.4k

 

6. SAVING - 20% @ 1.4k

 

TADA !!!! 100%

 

too many couple forget to factor in saving and other loan like reno loan and aircon instalment etc... end up spend too much on car... tot can afford... end up every day stress...

 

when salary go up... everything also go up...

 

i know my concept sound too perfect... but hei... we need some gauge for self control... and this 20% rule is a good gauge for me

[Axela72]

sometimes things may not turn out as planned.

 

 

You are right. Whose know next mth you strike TOTO

[Stary]

Instead of saying you need $XXX to afford a car, I would rather they say like you should afford only 20% of your salary/month to pay for car and car related expenses.

[Axela72]

If I intend to get a Civic (around 80k to 90k), what should be my salary then?

 

Those present Civic owner should be currently commanding that amount of salary as per your advice above.

[Forummer]

This article is assuming that our cars are paid by hire purchase.

 

But some if not most of us, our cars are mostly paid in full or half.

 

Most of my frens cars are paid in full... They have never heard of hire purchase / loan.

[Intervuurt]

So may I know what is the typical price range of the car can a salary with $7650 purchase?

 

Mr Wu from salary.sg will probably say Chery QQ. Mr Wu is a c--k.

[Windchoco]

sometimes things may not turn out as planned.

 

I mean nothing in life will turned out as planned..

 

So what if u earn 7k / mth ?

 

We all know that unless u r ur own boss or in finance/govt sector, the higher u earn, normally means the more challenging and less stable your job and the harder u could fall.. So the current salary means nothing IMHO..

[Kusje]

Both opinions are stupid.