How much spent on a car is wise
-
How much spent on a car is wise, including installment, petrol, insurance ... and sending? I mean how much percentage of the whole family cash incoming (excluding CPF part)
I know different people can have different guidelines. Just curious where the mean is. -
dunno about family ... but average per month +petrol -parking(private estate) +public parking +installments +all nonsense you can think of .... about $1300
-
How much should we spend on fuel alone? $150?
-
can't live with that ... at least $250 for meOriginally posted by hotxyz2002:How much should we spend on fuel alone? $150? -
i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home. -
3k so after cpf, u will have 2.4. 1.2 to ur car, 1.2 home. so how much do u save per month? and anyone else supporting ur family wif u?Originally posted by rumie:i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home. -
OMG!! Half of your salary.Originally posted by rumie:i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home.
My god. -
what ... i spent like 90% of my salary man ...Originally posted by Lingos:OMG!! Half of your salary.
My god.
-
OMG..Originally posted by johncooper:what ... i spent like 90% of my salary man ... -
Preferably close to nothing.
-
i guess u dun haf other commitments, or someone else is taking care of them for u?Originally posted by johncooper:what ... i spent like 90% of my salary man ... -
Yeah no offence, but when you move out of home how are you gonna continue this? That's huge!
-
50%, yes, it's a lot. but what's the big deal? i tot that's normal?
so what's the "safest amount"? 30% of take-home pay?
if on average a person spend $900/mth (for everything) for a new car, and this $900 is equaivalent to 30% of his take home pay, then:
30% -> $900
1% -> $30
100% -> $3000 (after CPF)
80% of full pay -> $3000
1% -> $300/8
100% -> 3750 per month.
So does that mean a person has to earn $3750 FIRST, in order to drive a decent car?
What's the big fuss... -
well i cannot continue like this ... but suffer abit more i will pay off my 3 years loan leowOriginally posted by Lingos:Yeah no offence, but when you move out of home how are you gonna continue this? That's huge!
-
Hm.. do you buy insurance, give parents money?Originally posted by wuming78:3k so after cpf, u will have 2.4. 1.2 to ur car, 1.2 home. so how much do u save per month? and anyone else supporting ur family wif u?
-
Hi, do you buy personal insurance, give parents......
if yes, like that... no need saving liao.....Originally posted by rumie:i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home. -
It seems like more people take 30% of take home pay as a guide line. May I check it is refering to one person's pay or count in you spouse?
-
Hi Rumie:Originally posted by rumie:i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home.
Did you include the insurance and road tax inthe $906 installment? Otherwise there will be close to $200 more in monthly spending. Am I right? -
yes, you're right. i haven't counted the road tax and insurance yet, i usually rely on the 13month "bonus" to pay it. but i DO have extra/side income of about $250/mth which i save part of it to cover.
i do agree that if you're not earning much, don't buy a car.
in fact, the side/extra income that i have is necessary for me if i want to live by better.
you can say that i don't really need the car if that's the case, and i don't have to earn that extra money just to cover.
but to me (and i believe it's the same for many here), that a car is more than just a transportation tool. hence, i do enjoy driving a car even though i know i have to work harder for it.
-
Hi Rumie,Originally posted by rumie:i spent about $1200/mth on my car.
$906 for installment.
$200 for petrol.
$65 for parking at hdb carpark.
$rest are for cashcard (parking + erp)
occasionally (avg2-3 mths), i spent extra on car maintenance and servicing, but i estimate that on average, i only spent $1200/mth.
i earned abt...erm, $3k/mth, so after CPF, the $1200 will be about 50% of what i take home.
Mind if I ask what car are u driving? How much is the car? N the number of years u are repaying the loan...
Cheerz! -
personal insurance, no.Originally posted by CarDreamer:Hi, do you buy personal insurance, give parents......
if yes, like that... no need saving liao.....
give parents, yes.
i'm married. my wife's not working.
not living by ourselves yet, so no commitment to family. no kids yet too.
my wife and i still pursing our dreams, so commitment is little.
savings, yes, very slow i've to admit but there's still savings.
i just turned 26 this year. worked for half a year.
am i saying too much here??? -
i'm driving just a mazda323 1.6A.Originally posted by ricardo79:Hi Rumie,
Mind if I ask what car are u driving? How much is the car? N the number of years u are repaying the loan...
Cheerz!
the car costs $73000 at that time.
i paid minimum (not zero) for the downpayment, big mistake. my advice is not to do that. try reading up a bit in this forum and you'll see people's advice on how much should pay.
the loan is over 7 years, that's why paying so much @ $906.
this is mainly the problem.
insurance for my case is $1400/year. don't ask why so little, it's pretty obvious. i have to drive the car real carefully. -
Would you mind to explain a bit more details on the downpayment part. Why it is not good with Zero downpayment? How much downpayment you think is most optimized?Originally posted by rumie:i'm driving just a mazda323 1.6A.
the car costs $73000 at that time.
i paid minimum (not zero) for the downpayment, big mistake. my advice is not to do that. try reading up a bit in this forum and you'll see people's advice on how much should pay.
the loan is over 7 years, that's why paying so much @ $906.
this is mainly the problem.
insurance for my case is $1400/year. don't ask why so little, it's pretty obvious. i have to drive the car real carefully. -
correct me if i'm wrong. here's an example:Originally posted by LLukeShen:Would you mind to explain a bit more details on the downpayment part. Why it is not good with Zero downpayment? How much downpayment you think is most optimized?
suppose a car needs $120,000.
and a person pays a downpayment of $20,000. which means the person still needs to pay $100,000.
this person borrows a loan from the bank. the longer the repayment length (usually it's 5, 7, 10years), the higher the interest.
for 7years loan @ 2.6% per annum, this interest rate is calculated for the $100,000 with the following (agar-agar) formula:
Total amount to pay over 7 years
= $100,000 x (2.6 x 7) + $100,000
= $118200
The monthly repayment will be
= $118,200/(7x12)
= $1407
Of course, it'll be slightly lesser than this but it's an alright approximation.
Now, suppose for the same car of $120,000 this person takes a 0-downpayment (if he's lucky in able to do that).
Then for the same 7years loan @ 2.6% per annum,
Total amount to pay over 7 years
= $120,000 x (2.6 x 7) + $120,000
= $141,840
The monthly repayment will be
= $141,840/(7x12)
= $1688
That's a difference of about $250/mth. SOunds little, yes. But it WILL matter a lot when you start worrying about the monthly petrol, road tax and insurance...
So as you can see, the more the downpayment initially, the lesser you'll have to pay per month.
So it'll be better if you take on a 10yrs loan right? since the repayment period will be extended to 3 more years...
WRONG!!!!!!!
because, unless you can tahan driving your car for very long, you'll have the urge to change your car.
but, if you do change your car sooner then a certain period, you'll have to fork out extra money because you're still servicing your interest from the loan.
from what i heard, for 7years loan, you should not sell your car until the end of the 3rd year or you'll have to fork out the extra money.
for 10years loan, i heard its at the 5th year.
that's why someone here mentioned that he must tahan till he's able to sell his car without making any loss. -
i dunno what's the optimum downpayment. think there's no such thingy. talk to the car agent and he'll be able to calculate for you till a value you'll be comfy with. don't be shy about asking more.
i've seen on other thread in this forum that this person bought a Honda City (cost @ $75000 or something), downpayment is about $9k over 7 years, and his monthly is about $740.