Cost Of Car Ownership

[globalcookie]

Happened to listen to Class 95 and there is this caller who said he doesn't have a savings.

So the financial advisor on air asked him how much he earns and spends. Of which, he said,
- car installment being $800
- Gross income $5,000

I estimate car ownership cost would add another $500 monthly consumption (petrol, parking, maintenance, etc) and another $200 to road tax and insurance, thereby average cost totalling $1,500 per month.

In the caller's case, he spends 30% of his gross income on car.

Question : How much are you spending on your car per month?

There was a period in my life where I spent more than 50%, and another stage being 33%, before it started coming.... and eventually 0% on car now after giving a very serious thought on a good bro's advise on the affordable percentage. I'm thankful to his words. It changed me.

If the need arise again, I'll get a car, but for now, I'm happy without.

[BTGH]

I would say max 20% because that is pure cash that's going out every month.

[Ong88]

10-15% to transportation costs.

Anything more, overspending.

Car costs more than 15%, take taxi/uber.
Taxi eat up more than 15%, take bus/mrt.
And if bus/mrt use up more than 15%, please walk or bicycle.
Walk cost more than 15%, stay home please.

[globalcookie]

Originally Posted by Ong88

10-15% to transportation costs.

Anything more, overspending.
...
Walk cost more than 15%, stay home please.

The good bro showed up.

I gave that 15% a good thought. Than asked myself why would I want to pay more for a depreciating liability, car as I would for an asset, housing (monthly installment being $1100).

Bro u forgotten, can still e-scooter before walk.

(No wonder I've been staying home a lot for e last 1 month)

[john ng]

for me no more than 10%... how i figure it is, a car saves me abt 1.5hrs per day. roughly 6% of 24hrs... but i need 8hrs of sleep and 1hr of admin everyday, so effectively only left with 15hrs... the 1.5hrs saved is 10% lor...

[AlvinLeong]

Chiong ah!!!!

Balloon scheme ah!
COE renewal loan ah!
$0 downpayment ah!
LCR car ah! new Vezel, new Attrage, new Sienta, new Ex lancer......

[kenghua]

One of the "motivations" for guys to own a car, is to go after the ladies. If real-life is a game, I guess it probably increases the chances of getting laid or get one.

Personally, I don't see the need to own one. To me, it's a luxury item, not a necessity. Probably something to do with being a loner who don't socialize, hate to be around crowd, forever-alone guy. I only think of the money I could save, for retirement, by not owning a car.

Got my class 3 licence in 2004 and been using it to exchange building security passes. (not driving) hahah.

[onlyyouknow]

For me, a car provides convenience and mobility. Some places in Singapore are just not very accessible. But cost of owning a car is a lot more because of high COE. If in another country I think car is the best choice of transport.

[xersion]

17% for me...

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[globalcookie]

Originally Posted by john ng

for me no more than 10%... how i figure it is, a car saves me abt 1.5hrs per day. roughly 6% of 24hrs... but i need 8hrs of sleep and 1hr of admin everyday, so effectively only left with 15hrs... the 1.5hrs saved is 10% lor...

your computation is based on time.

Yes both time n money are good measurements. Finances needs to permit. Some ppl are constrained w a real need thus percentafe of income isn't their first concern.

Originally Posted by xersion

17% for me...

Combined income than that is almost halved. Realistically,a car is based more on e individual's income.

For me, my bike fuel cost less than bus fare.