COE Bidding - 1st Round July 2019

[Scaredcloud]

So a person earning $100,000 a year should only buy a $30k car?

 

COE car also more expensive than that.

 

 

Why not? It might mean that in current situation a car is out of reach.

So a person (considered single income) is making 100k annually, looking at typical 12+1+1 remuneration package, the person is making approx. 7500 monthly.

 

Is 750 dollar (10% of monthly income) really sufficient to cover all vehicle expenses? (insurance + roadtax + petrol + carpark + toll charges + maintenance, etc.) 

 

One might think 10% is too little a budget allocated to car, but hear hear, a typical Singaporean:

20% goes to CPF

5% on tax

5% on insurance

15%~20% on housing

10%~20% on savings & investments

10% for parents/religion contributions

25% for meals

... and misc entertainment

 

Is 10% allocation really too low?

[bamf]

Think more realistic in car loving Singapore is 30% of monthly salary.

 

30% of monthly salary as Long as can cover all your cost(installment on 5yrloan+insurance+roadtax, carpark,toll,maintenance,etc)

 

So earn 10k/month. Car installment 2k+1k(all other cost)=3k. So can actually afford a 200k car as Long as you can afford the initial deposit. And after 5yrs car no more loan, more than enough trade value to change car.

 

Aggressive but won’t be surprised this is the situation for many.

Edited July 5, 2019 by bamf

[Scaredcloud]

Think more realistic in car loving Singapore is 30% of monthly salary.

 

30% of monthly salary as Long as can cover all your cost(installment on 5yrloan+insurance+roadtax, carpark,toll,maintenance,etc)

 

So earn 10k/month. Car installment 2k+1k(all other cost)=3k. So can actually afford a 200k car as Long as you can afford the initial deposit. And after 5yrs car no more loan, more than enough trade value to change car.

 

Aggressive but won’t be surprised this is the situation for many.

 

Definitely true.

I also understand that this is a car forum hence more love (budget) should be given to cars, especially in this YOLO advocated era. The financial considerations are merely brought up as a fun debate. 

 

I must add that the current "flawed" COE system is the main contributor to this unbalanced situation, a flaw that the government will not fix of course. 

[Ct3833]

cost of car ownership over income will not be a linear  graph when plot against the various income levels.

1. one has to be financially affordable to buy a car.

2. some may stretch a bit because of like, not needs, that is fine as long as he is clear what he is doing.

3. below certain income, it is not viable to buy can in SGP because of the costly car ownership. Again, this is subjective, but people who make about 5k 6 k should not be thinking about car, simply because it is a waste of his hard-earned money even if he will to buy the cheapest B&B car.

4. those who earn 10k  can spend about 20% to 25% of his annual income on car,  that would mean a 100k+- B&B car plus maintenance, parking, petrol etc.

5. but the line wont be linear the income increase, it will tapper off instead as the income rises. One  who earns abut 30k will just needs to spend 10% of his income would be able to  drive a fairly good car. those who earn 50k which are the minority, they may spend much less in % of their income on car but they would end up driving fairly good car. 

Me? lowest band of the group, COE car. Paiseh. 

Edited July 5, 2019 by Ct3833

[13177]

Think more realistic in car loving Singapore is 30% of monthly salary.

 

30% of monthly salary as Long as can cover all your cost(installment on 5yrloan+insurance+roadtax, carpark,toll,maintenance,etc)

 

So earn 10k/month. Car installment 2k+1k(all other cost)=3k. So can actually afford a 200k car as Long as you can afford the initial deposit. And after 5yrs car no more loan, more than enough trade value to change car.

 

Aggressive but won’t be surprised this is the situation for many.

But actual fact how many are earning 10k per month le? 

[HP_Lee]

Tend to agreed, mainly on face matter for the locals. Buy first, money settle later.

 

 

Many people think of status rather than higher running cost. Driving an entry level conti brand is still looks more atas than driving a upper range jap/korean brand for some people lo.    This is why nowadays those entry level conti brand is so common and popular.

 

This are pragmatic bunch like me. Ultimately, is one decision on how to allocate money and expenses. Some care more for retirement while others live life day by day.

 

 

Some people 20k income but want to drive entry level japanese cars too! haha

 

Edited July 5, 2019 by HP_Lee

[13177]

cost of car ownership over income will not be a linear  graph when plot against the various income levels.

1. one has to be financially affordable to buy a car.

2. some may stretch a bit because of like, not needs, that is fine as long as he is clear what he is doing.

3. below certain income, it is not viable to buy can in SGP because of the costly car ownership. Again, this is subjective, but people who make about 5k 6 k should not be thinking about car, simply because it is a waste of his hard-earned money even if he will to buy the cheapest B&B car.

4. those who earn 10k  can spend about 20% to 25% of his annual income on car,  that would mean a 100k+- B&B car plus maintenance, parking, petrol etc.

5. but the line wont be linear the income increase, it will tapper off instead as the income rises. One  who earns abut 30k will just needs to spend 10% of his income would be able to  drive a fairly good car. those who earn 50k which are the minority, they may spend much less in % of their income on car but they would end up driving fairly good car. 

Me? lowest band of the group, COE car. Paiseh. 

Haa, if like this many people could not or should not own a car liao, cause like must earn 10k then can think of owning a car le?!    Anyway, owning car is really subjective la, no matter how much you earn?!

[Ct3833]

Haa, if like this many people could not or should not own a car liao, cause like must earn 10k then can think of owning a car le?!    Anyway, owning car is really subjective la, no matter how much you earn?!

agree, but dont stretch too much to buy car. it is a waste of money. 

Tend to agreed, mainly on face matter for the locals. Buy first, money settle later.

 

 

 

This are pragmatic bunch like me. Ultimately, is one decision on how to allocate money and expenses. Some care more for retirement while others live life day by day.

you are not pragmatic, you are wise , some maybe otherwise. 

But actual fact how many are earning 10k per month le? 

give and take a bit, maybe 8k 9k? dont forget, once get married, husband and wife combine income say 12k, can buy a car, no issues, and i believe many car owners are married. 

[13177]

agree, but dont stretch too much to buy car. it is a waste of money. 

Buying car in sg confirmed and chopped waste of money, no matter how much you earn lo. So depends on the person where and how he/she want to spend the money to. Like some people maybe dont buy car, but they also spend lots of money on others things, like holiday, eat, clothing or hobby etc.

give and take a bit, maybe 8k 9k? dont forget, once get married, husband and wife combine income say 12k, can buy a car, no issues, and i believe many car owners are married. 

But your 8-9k is gross or nett ah? If gross, dont know if it is common to find many people earning such salary? Maybe must see the person's age, working experience and position etc.

 

This is why so many people could afford a car, maybe even though one person is earning just 4-5k per month, because of combined income, if each person earn 5k, total also have 10k liao. So can afford car and even stay private. But if for single, earning 4-5k some people might also can afford a car la, depends on the person overall expenses. 

 

 

Edited July 5, 2019 by 13177

[Midorima]

Many people think of status rather than higher running cost. Driving an entry level conti brand is still looks more atas than driving a upper range jap/korean brand for some people lo.    This is why nowadays those entry level conti brand is so common and popular.

 

To be honest, those people that I know who drive entry level conti brands, are not looking about status (there are people who actually think brands like Skoda are of lower status compared to Jap cars). They look at the technology and driving feel. Can't be so broad brush that they are looking for status.

 

For simplicity sake, if you look at Skoda Octavia 1.4, the price is vfm, if say you compare with the new mazda3. What about Skoda Octavia RS245? You won't be able to find something of that spec at this price range in Jap cars. Even the Korean Stinger 2l with similar specs is more expensive.

 

Alot of entry level conti brands are gaining traction, and people are buying not because of the status. It is because they are able to give you the continental technology in engines at an affordable price.

 

You can go try driving the cars and you can see a difference in driving feel and enjoyment for a DSG vs CVT. And please no more comments on the DSG gearbox problem which has largely reduced already in recent years, and is contained largely within 1 variant of the gearbox, out of about 9 now.

Edited July 5, 2019 by Midorima

[yishunite]

Why not? It might mean that in current situation a car is out of reach.

So a person (considered single income) is making 100k annually, looking at typical 12+1+1 remuneration package, the person is making approx. 7500 monthly.

 

Is 750 dollar (10% of monthly income) really sufficient to cover all vehicle expenses? (insurance + roadtax + petrol + carpark + toll charges + maintenance, etc.)

 

One might think 10% is too little a budget allocated to car, but hear hear, a typical Singaporean:

20% goes to CPF

5% on tax

5% on insurance

15%~20% on housing

10%~20% on savings & investments

10% for parents/religion contributions

25% for meals

... and misc entertainment

 

Is 10% allocation really too low?

30% of annual income for car purchase... so to buy a Mazda 3 you(r household) should be earning $200k/year?

 

Lol if I make 200k/year I pay off my HDB in 4-5 years max. Why cannot afford a bigger car?

[Rskc]

To be honest, those people that I know who drive entry level conti brands, are not looking about status (there are people who actually think brands like Skoda are of lower status compared to Jap cars). They look at the technology and driving feel. Can't be so broad brush that they are looking for status.

 

For simplicity sake, if you look at Skoda Octavia 1.4, the price is vfm, if say you compare with the new mazda3. What about Skoda Octavia RS245? You won't be able to find something of that spec at this price range in Jap cars. Even the Korean Stinger 2l with similar specs is more expensive.

 

Alot of entry level conti brands are gaining traction, and people are buying not because of the status. It is because they are able to give you the continental technology in engines at an affordable price.

 

You can go try driving the cars and you can see a difference in driving feel and enjoyment for a DSG vs CVT. And please no more comments on the DSG gearbox problem which has largely reduced already in recent years, and is contained largely within 1 variant of the gearbox, out of about 9 now.

I agree. Not everyone buys entry conti for status.

 

Jap cars are reliable but really that is about it!! Not talking about wrx or type R etc, just normal b&b cars.

 

I had owned a 2nd hand fiat stilo 4 doors. Bought it at decent price. Fiat is nothing to shout about but it is 10x more fun than any other jap b&b car! Even my wife still talks about it now and then even I sold years ago.

[Scaredcloud]

30% of annual income for car purchase... so to buy a Mazda 3 you(r household) should be earning $200k/year?

 

Lol if I make 200k/year I pay off my HDB in 4-5 years max. Why cannot afford a bigger car?

But you can, can’t you?

The question is should you? Nevertheless if one is making 200k a year with 4-5years of outstanding HDB mortgage, one should be capable of making the right decision.

 

Don’t get me wrong, I have no intention in depriving joy and happiness. This is a car forum after all, I trust that everyone here have at least a tiny bit of interest in driving a good and fun car. If at any moment in life driving a more expensive car brings more joy than anything else then please, by all means.

[Rskc]

Many people think of status rather than higher running cost. Driving an entry level conti brand is still looks more atas than driving a upper range jap/korean brand for some people lo. This is why nowadays those entry level conti brand is so common and popular.

There is nothing great about conti status unless you are driving top of the range like S class, 7 series or X7. It is just so common even for merc and bmw on Singapore roads nowadays.

 

For those that say pay premium for jap car for reliability, I only wanna say that, imho, after owning jap, korean, italian, german cars, the argument is flaw cos the premium you for some jap brands

Edited July 5, 2019 by Rskc

[bamf]

Don’t think so much.

I just think how many new cars I can drive in my lifetime.

 

Nowadays sportsman also can get heart Attack.

Assuming I live another 40/50years, that’s 4or 5 new cars to drive for 10yrs. In fact maybe after 70 yrs old, got money to drive nice and fast car, but cannot see traffic light properly...

 

As Long as can pay installment, support family comfortably, don’t rob don’t steal, just buy lah. So I decide just upgrade. If not wait until 60plus then drive nice car?

[Jamesc]

My bad, I should have added "household".

 

 

 

 

Or Swift, or Avante...

 

Household makes sense now.

 

30% of household sounds good to me.

 

[bamf]

Household makes sense now.

 

30% of household sounds good to me.

 

Continue being conservative and unrealistic. Sad when household earn 300k/year can’t even afford a forester.

 

If follow this guideline, I think not many cars on the road. Many not even enough demand to cover COE quota.

 

Better guideline would be 80% of household income. 100% max if want to stretch and don’t spend so much on holidays, branded bags etc. If household earn 250k/annum, driving a 200k car is not unreasonable at all.

Edited July 6, 2019 by bamf

[Wildfaye29]

Wow I must be uncle scrooge.

 

Household income 300k pa and drives a sub 80k car.