Hi everyone. I started this thread to get a second opinion from more expert car owners on the costs of owning a car.
In my case, I would like to own a car and finance it with Grab driving, and also earn some side income. Currently doing self-sustaining investments, so don’t mind driving to burn all my spare time and also to ferry my family around.
It is my hope that this thread can also guide new aspiring PHV drivers.
- Buying Honda Jazz 1.3 from AD, no loan ($74,999 at Kah)
- Driving 6 hours for Grab a day, 8 hours on the road, $5/hour fuel
- Gross takings for 1 hour of Grab is average $32 (Before commission+expenses)
- Medisave is still your own money so don’t need to count contributions as expenses
Daily Cost of driving PHV (Worst Case Scenario)
- Car Cost ($74999/10 years, $7499.9 PARF) = $18.49
- Insurance Price ($2000/year) = $5.48
- Maintenance Fees ($1000/year) = $2.74
- Road Tax ($578/year) = $1.58
- Additional Costs (Accidents, Wear and Tear) ($4000/year) = $10.96
- Carpark Fees ($110 HDB season, $6/day Misc) = $9.62
- Fuel Costs (8 hours/day @ $5/hr) = $40
Total Daily Costs: $88.78
Estimated Daily Earnings
- Gross Takings (6 hours, $32/hr) = $192
- After 20% commission = $153.6
- Taxable income = $56064
- Income tax paid = $400
Nett Daily Income (After all deductibles) = $63.72
Worst Case Scenario Monthly Income (6 hr/day for 30 days) = $1911.72
Key Questions to be answered
- Is the $32/hr average gross takings by PHV drivers realistic? Assuming the most newbie technique - to aim for incentives.
- Would renting a car be a better option?
Edited by TayBoonSiang, 24 June 2018 - 01:01 PM.