How much does your car suck your net income?

[Zanter]

We all know a car sucks a lot of money. A regular car can easily cost us $1500 a month. A nicer car >$2000. Most of this money is irrecoverable and we are essentially renting a car despite our illusions of ownership. We would be considered lucky we dont have to top up the finance company just to sell away our cars!

 

If instead of having a car, we put the same $ in any investment over the years, I think most of us would be rich! (Yeah we all know who is the blood sucking benifactor ). Eg 1.5k a month =18k a year or $180k in 10 years!!!! Yet they are thinking of charging us more for our cars!

 

So how much does your car suck from you every month in terms of percentage of your net income or take home pay? Net income is what you get after CPF deductions.

[Rickster]

I think we need to set a standard for car ownership cost. The monthly cost should include:

 

- Installment

- Road tax (pro rated)

- Insurance (pro rated)

- Season parking (office/home)

- Outside parking

- ERPs

- Servicing (pro rated)

- Petrol

[Libox88]

I calculated and I think it will be around 15-20% of my net income but hey I am just just driving a 1.0M OPC

[Galantspeedz]

- Depreciation est 550/ mth

- Road tax (pro rated) 150/mth

- Insurance (pro rated) 75

- Season parking (office/home) 0

- Outside parking est. 20

- ERPs 0

- Servicing (pro rated) 30/mth

- Petrol 350 - 400

 

So total is est 1.2k/mth driving CL1. Considering i got so many 0 i think damn expensive liao.

Edited January 18, 2008 by Galantspeedz

[Zanter]

U may not have to pay any instalment but you have to factor in your depreciation?

[Toyo]

because yr petrol expenses is high

[Galantspeedz]

but if that is the case, instalment amt may not equate to depreciation leh.....

 

ok lar i factor in depreciation lor

[Galantspeedz]

eh yar... no thanks to the cartel..... and cuz need to pump 98 leh

[Akula]

Installment $2200+

Road Tax $195 ( pro rated )

Insurance $90 ( pro rated )

Season parking $170

Outside parking $15 ( estimated )

ERP $10 ( estimated )

Servicing Free

Petrol $300 ( estimated )

 

Total of nearly $3000 in all

[Mustank]

- Depreciation est 500/ mth (/10 yr)

- Road tax (pro rated) 80 /mth

- Insurance (pro rated) 100/ mth

- Season parking (office/home) 150

- Outside parking est. 20

- ERPs 70 / mth

- Servicing (pro rated) est. 30/mth

- Diesel 300 /mth

 

total: $1220 /mth

[Zanter]

Yeah true. Some instalments dont even cover the true depreciation like many will find themselves having to top up finance co due to this. Interest & penalty charges will add up as well.

 

Often when we buy cars we calculate based on 10 year depreciation, however, we'd rarely drive the same car for 10 years. The depreciation for the 1st 3 year can be quite siong. eg Cefiro purchased at 100k 3 years ago is now only worth scrap value or like 50+ k only. Those that take 10 year loans or rebates die c*ck standing

[Miles]

Look at it another way.

 

If you dont drive and yet maintain the same life style you have (which means you take taxi everywhere,.. assuming you dont have issues getting one in the first place).... how much do you think you will spend on transport a month?

 

Of course, you will not spend so much money if you choose to compromise your quality of living. But that's another arguement all together.

 

To get the best of both world, ie. maintain current life style yet reduce your monthly outlay for transport --> get a cheap car that's cheap to run and cheap to maintain. You probably could pay up in full without installment and just pay for fuel, roadtax, ins, maintenance, carpark and ERP; which will lower the % of what you spent compared to your income.

 

I remembered reading somewhere which says you should not be spending more than 30% of you income on your car/transport. But survey in Singapore shows most ppl are spending 40-50% of their income on cars.

[Mustank]

- Depreciation est 500/ mth (/10 yr)

- Road tax (pro rated) 80 /mth

- Insurance (pro rated) 100/ mth

- Season parking (office/home) 150

- Outside parking est. 20

- ERPs 70 / mth

- Servicing (pro rated) est. 30/mth

- Diesel 300 /mth

 

total: $1220 /mth (accural method)

 

total: $720 (cash method)

 

i hope to drive 20 yrs.....i think it is cool to drive a lao pig karp

 

i think it is a dream of many to die cccokc stand.....no wonder wan bao always report: lao wong bao pi ya long [laugh]

[Zanter]

You have raised a valid point but the fact is that Sg is a v small place. In many countries, even you wanna get food or go Supermarket you have to drive 1-1.5hrs, & thats considered near.

 

I think in Sg most places can be considered reachable by public transportation. So either Sporeans are prepared to pay a huge premium like 50% of their salary to save that 30mins-45min difference compared to public transport, OR there are other reasons to have a car, like status, have car have , freedom, etc cos a 50% hit to disposable income is huge!

[Miles]

true... its definitely easier to get that dream girl of yours if you drive, than if you have to rely on public transport, even if its taxi.

 

but then again, spending 50% of your income in 2-3 supercars if your monthly income is minister grade is not that bad actually...

[Zanter]

Well for for Minister they cannot have , otherwise will have to say, " My mistake is to stay at the same room at the same hotel!" . So that is why they have to be paid 1.7 million minimum a year mah

[Gearoil]

We all know a car sucks a lot of money.

 

Just felt the need to correct your statement.....a car does not suck a lot of money....only another human being ( specially of the female gender ) do so!!!

[Miles]

hmm... if it's as what you say, why are the ones being sucked called suckers?