Fresh graduate: Buying a car? Options

[Danielgsx]

A fresh graduate with a starting pay of $3000 before CPF, is it advisable for him to buy a car? If so, what make is advisable? Thanks.

[Verve]

what quality of grad will think of buying car with 3k gross income

simple math

3k take home 2.4k

less car approx 1.2 -1.5k

can forget about everything else liao

[MadDog70]

3K is not sufficient to buy a car unless he is willing to eat bread for every meal.

[Danielgsx]

So what is the level of salary do you think one should have before he should consider buying a car?

[Chinablue]

more than enough for an OPC car.

for normal plate can try those like chery QQ?

This post has been edited by Chinablue: Feb 26 2010, 08:56 PM

[Danielgsx]

What if the graduate places priority on getting a car, loathes to take the train, and has no other commitments such as gf, 3k do you still think it is advisable to get a honda civic hybrid, no downpayment, payable in 5 years loan?

[MadDog70]

4k should be comfortable for a small ride while not compromising your current lifestyle.

I learnt this from experience, also earning 3k that time, bought a ride (some more dad helped to pay 40% deposit).
Car expenses are so high that I have to re-think if I want to buy something that worth $50 only.
I sold it 8 months later and was very relieved after that.

[Melvinwcc]

what quality of grad will think of buying car with 3k gross income

simple math

3k take home 2.4k

less car approx 1.2 -1.5k

can forget about everything else liao

A really "Smart" one!

[MadDog70]

Please work out the cost of owning a car first before deciding to buy a car.
You will be surprised how much you have to pay.
Initial deposit, monthly loan, road tax, motor insurance, ERP, car park expenses, maintenance, repairs.
You can easily find this info here .
Then deduct your monthly expenses, savings, then ask yourself if you can live with it.

[Chinablue]

What if the graduate places priority on getting a car, loathes to take the train, and has no other commitments such as gf, 3k do you still think it is advisable to get a honda civic hybrid, no downpayment, payable in 5 years loan?

hybrid around 82k
if interest is based on 2.18% with zero dp and 5yrs loan.
your mthly instalment will be $1515.63 excl other factors like insurance, road tax, servicing, petrol, parking, fines, repairs.

if you are happy with it, just do it.

[Macrosszero]

Honda Civic Hybrid is $82800.

Based on http://www.honda.com.sg/cars/calculator.asp and your info

Your monthly instalment is $1532.

Your take home pay is $2400.

It means you have $868 left for everything else. Season parking, petrol, ERP, coupon parking, servicing, insurance, road tax, those are the car related costs, those average $700-800 a month.

It means that you have less than $100 left per month, for savings, for food, for going out, for housing.

In short, don't buy a car unless your job is giving you a transport allowance substantial enough to at least offset your car's basic expenses like petrol.

[Danielgsx]

I have done that actually, 3k-20%cpf=2.4k

car cost=1.5k (Monthly installment for 5 years)
road tax + insurance = $200 per month
Petrol=$50 per month
Parking=$300 per month (Raffles place season + HDB season)
Total cost=$2050

I think I can live with $350 per month.

[Danielgsx]

I've been taking public transport since young, no family car since Day 1 I'm born. Taking public transport primary sch, sec sch, JC, NS, Uni. Now seriously getting quite sick of it alrdy. Also I think the public transport standards kind of absurd nowadays, and I think it will only get worst in the next 5 years with increased population growth and foreign talent import.

Also we need to consider the opportunity costs that you can potentially save by buying a car: Everyday wait + walk 15 min (conservative estimate) * 2 =30 min (To and from) for public transport plus time saved from taking public transport VS car. 1 month 20 working days save 10 hours. 1 year save 120 hours. 5 years save 600 hours, which is 25 days of your life.

[Loony]

I have done that actually, 3k-20%cpf=2.4k

car cost=1.5k (Monthly installment for 5 years)
road tax + insurance = $200 per month
Petrol=$50 per month
Parking=$300 per month (Raffles place season + HDB season)
Total cost=$2050

I think I can live with $350 per month.

From ur desc，u r working in CBD. Did u factor in the ERP already?
50 dollar for petrol is a bit not realistic if u r driving everyday to work.

[Danielgsx]

And the frustration saved for taking public transport.

[Tleslie]

dun forget the contribution from parents..
nowadays, many parents do that.
"my poor child needs to get up so early and get squeeze in public transport to go to work. so stress..."


This post has been edited by Tleslie: Feb 26 2010, 09:18 PM

[Macrosszero]

I have done that actually, 3k-20%cpf=2.4k

car cost=1.5k (Monthly installment for 5 years)
road tax + insurance = $200 per month
Petrol=$50 per month
Parking=$300 per month (Raffles place season + HDB season)
Total cost=$2050

I think I can live with $350 per month.

How about ERP? Getting into Raffles Place everyday can cost you several dollars depending on which area you live. And you'd have to do that 20-24 times a month.

Despite being a hybrid, you will need at least 2, more likely 3 tanks of fuel a month, which is $70-80 a tank.

You are a fresh graduate, so you should check your insurance quote. You may not get much change for $2000 given that it is a Honda, and you have 0% NCD.

You have left no room for having an accident, either paying for the insurance excess or settling privately the other party's damage.

How about parking summons or traffic offences?

You have absolutely no room for unexpected expenses, of which there are many when you drive a car.

[Danielgsx]

Thanks, based on the replies so far, it appears that one needs to have a take home pay of $5000, meaning a salary of $6000 before one should even consider buying a Japanese car. That means 30+ years old before one can have a car.

[Voodooman]

$220 a month for season parking at Raffles Place is not realistic. Market rate is around $300 now.

[Wintersonata]

How about ERP? Getting into Raffles Place everyday can cost you several dollars depending on which area you live. And you'd have to do that 20-24 times a month.

Despite being a hybrid, you will need at least 2, more likely 3 tanks of fuel a month, which is $70-80 a tank.

You are a fresh graduate, so you should check your insurance quote. You may not get much change for $2000 given that it is a Honda, and you have 0% NCD.

You have left no room for having an accident, either paying for the insurance excess or settling privately the other party's damage.

How about parking summons or traffic offences?

You have absolutely no room for unexpected expenses, of which there are many when you drive a car.

I have done that actually, 3k-20%cpf=2.4k

car cost=$1500 (Monthly installment for 5 years)
road tax = $60 per month
Insurance = $200 per month (0% NCD & young driver, $2.5k consider very low liao)
Petrol=$100 per month
Parking=$300 per month (Raffles place season + HDB season)
ERP = $100 (on the low side, $5 per working day, didnt even include parking for hawker centers and shopping malls)
Servicing & repair = $100 (Servicing range from $200 - $500 depending on mileage, hybrid even more expensive)
Total cost = $2360


Can you live with $40 per month? LOL...