SINGAPORE: “We are spending almost S$1,000 a month on transport. Is it better to get a car instead?” This is the question a family of three asked in an online forum on Wednesday (Feb 19), sharing their reason for contemplating getting their own vehicle.
“As the title says, we’ve been contemplating whether to get a car or not but our family’s transportation expense has been almost S$1,000 per month for the past three months due to our work and personal travelling. Our modes of transport are usually Grab, MRT and bus,” the post read. “Does it make sense to have a car at this point?”
To give readers more context, the family shared their financial background. “[We are] a family of three with an infant, and a combined monthly income of S$10,000 after CPF,” the post read.
Many users responded to the post, sharing some financial insight with regard to how much it costs to own a car in Singapore. Many argued that S$1,000 a month is still much cheaper than having a vehicle.
“The cost of owning and maintaining a car is higher than S$1,000 per month. More realistically, between S$1,500 to S$2,000 per month,” said one. “You need to consider: 1. Insurance and road tax (yearly), 2. Maintenance and servicing every six months, 3. Petrol, depending on your usage. 40L can last me around 450-500km. S$90+ after discount., 4. Car loan, depends on how much you are taking, 5. Season parking in HDB is S$80 for surface carpark, and S$110 for sheltered, 6. Season parking in the office, depends on location. S$150 onwards?, 7. Normal parking when you go out, 8. ERP.”
To this, the family responded, “Wow okay that’s actually more than expected. Our loan instalment budget is at S$700 to S$800 a month after a downpayment of 30 to 50 per cent. Of course, with that budget, only a car with a leftover of about 3 to 5 years of COE left.”
“To be honest, a combined monthly household income of 10k after CPF is not really a lot,” said another. “I assume that you still need to service your mortgage, pay for the upkeep of your parents, and also save up for your kid’s future education fund. Buying a car at this point will reduce a significant chunk of your savings each month. You still need to factor in the maintenance costs, car parking fees, annual road tax, and petrol costs which all add up. Even when you take Grab, I think it is still cheaper in the long run.”
However, one commenter who saw things in a different light said, “Go for the car, the time you save can be used to earn more money. Especially during peak hours, go for a used Japanese car, worst case scenario, just sell it.”
See also: Man, 27 y/o, has net worth of $260k, thinking of quitting job to travel