How much must i be earning?
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Now ppl, i know this question is rather stupid as it really depend on how u spend your money and such.
But generally, i just would like to have a feel of the opinions here.
1st question: Is it wise to take up car loan to finance buying a car (which is
suppose to be an asset tt is forever depreciating in value) and
thus being in debt for say 5 -10 yrs more?
2nd question: If one decided to take up a car loan, for say an avg car like
Nissan Sunny.
what do u guys think one's salary should be (at least) per
month in order to finance the car and also not feel tight on
other living expenses? is 2k (gross) enough? 3k? or at least 5k?
Just wanna have a feel of opinions here only...
thanks. -
to me, a car is a liability, so i must have enough money to support it.
personally i would want at least 3K + income from spouse -
I'll rather spend the money on business. -
I would go for a pay of minimum $4k with total vehicle liability per month not more then $1k to be able to continue to have savings, spending power, etc....
U should not end up paying for the vehicle and having to stinge on other areas of your living. That would be pretty miserable
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4k should b enuff...
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how much is a skyline gtr r34?
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Car is a liability.Originally posted by incredible:Now ppl, i know this question is rather stupid as it really depend on how u spend your money and such.
But generally, i just would like to have a feel of the opinions here.
1st question: Is it wise to take up car loan to finance buying a car (which is
suppose to be an asset tt is forever depreciating in value) and
thus being in debt for say 5 -10 yrs more?
2nd question: If one decided to take up a car loan, for say an avg car like
Nissan Sunny.
what do u guys think one's salary should be (at least) per
month in order to finance the car and also not feel tight on
other living expenses? is 2k (gross) enough? 3k? or at least 5k?
Just wanna have a feel of opinions here only...
thanks.
Unless u rent it out.
Ur flat is also a liability. U dump money into it and u never seems to finish paying it...
Sunny? Depends on how much downpayment u wanna pay up. Anything about 30K, u should be comfortable with 4-5K gross per mth..
HAhaha.....but is that wat u really want?!
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Car is a liability in Singapore and the expenses is not just the car loan but maintainence and running cost as well. A very general rule of thumb is that a 1.3-1.6CC car would cost monthly S$1.5K and a 2.0CC car would be minimum $2K. Doesn't really matter how much you earn but how much disposable income is left for cars.Originally posted by incredible:Now ppl, i know this question is rather stupid as it really depend on how u spend your money and such.
But generally, i just would like to have a feel of the opinions here.
1st question: Is it wise to take up car loan to finance buying a car (which is
suppose to be an asset tt is forever depreciating in value) and
thus being in debt for say 5 -10 yrs more?
2nd question: If one decided to take up a car loan, for say an avg car like
Nissan Sunny.
what do u guys think one's salary should be (at least) per
month in order to finance the car and also not feel tight on
other living expenses? is 2k (gross) enough? 3k? or at least 5k?
Just wanna have a feel of opinions here only...
thanks.
Ideally, if you can pay the car price full in cash, that's the best as you minimise your interest payments. However, most people don't have the type of money and so, the best bet is to minimize the cost of owning a car is to;
- pay at least 30% downpayment
- buy a 2nd hand car that is at least 2 years or more old
- make sure your declared car price less pro-rated COE is less than $55K
- go for 5 year loan instead of 7
- get a reliable car that has cheap maintenance cost (like corolla or lancer)
- get a car with low petrol consumption
You best bet is a corolla G9 - not the nicest looking one but certainly the most practical! -
Pay 100%?Originally posted by stektan:Car is a liability in Singapore and the expenses is not just the car loan but maintainence and running cost as well. A very general rule of thumb is that a 1.3-1.6CC car would cost monthly S$1.5K and a 2.0CC car would be minimum $2K. Doesn't really matter how much you earn but how much disposable income is left for cars.
Ideally, if you can pay the car price full in cash, that's the best as you minimise your interest payments. However, most people don't have the type of money and so, the best bet is to minimize the cost of owning a car is to;
- pay at least 30% downpayment
- buy a 2nd hand car that is at least 2 years or more old
- make sure your declared car price less pro-rated COE is less than $55K
- go for 5 year loan instead of 7
- get a reliable car that has cheap maintenance cost (like corolla or lancer)
- get a car with low petrol consumption
You best bet is a corolla G9 - not the nicest looking one but certainly the most practical!
U heard of cashflow anot?! -
i would say a personal rule of thumb would be to spend max 30% of your take home pay on your car. so if you take home $3000, spend the max of $900 on your car, that includes petrol and other miscellaneous stuff. In any case of emergency that you might need to sell your car, then you will not slump into a financial crisis. just my 2 cents.
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Hi,
If you do not really have alot to spend on your car every month, it is more advisable to get a 2nd-hand one. Less depreciation.
If you want to know the car prices for 2nd-hand cars, can go here for a look.
http://www.sgCarMart.com
Very comprehensive, and detailed updated info there.
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alot of people these days pay just 10% downpayment.
and take a 90% loan...they get stuck with the car for like forever(10 years)
cause anytime they sell or get accident(scrap) they lose minimum 10k for small car to around 20k for large car. simply cause their installment cannot cover the depreciation.
if u take home pay is 3k for instance...spend max 15% on car maintainence. meaning get a small car. a proton or something cheap. so your installment and petrol consumption per mth is $450 and below.
downpayment is 10% of your cash in bank. meaning if u have 50k in bank...put down 5k for your car downpayment. this is possible for a small car that cost 49,999.
dont do something dumb and spend 30% of your income just so you have a bigger car to maintain and in the end if u cannot support the car...the bank will repossess it. and if u had taken a 10year loan...after the bank has repossessed the car they will send debt collectors to claim the balance for the money u owe them.
spend 30% of your income on housing installments. that is wise and not a car.
so if u make 3k...spend 1k on your housing installment. pay off the loan ASAP. interest can KILL. -
Same thinking hereOriginally posted by Parka: I'll rather spend the money on business. -
As others said, car is a huge liability in Singapore.
But I will just add. If you have cash and you intent to buy flat and car, then use the cash to pay car. Car interest is A LOT higher than housing interest. -
And minimum spending per month on car is $1K at the lowest end. So, you do the sum yourself. Plan $1.5K if you are unsure.
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ahhaha...frankly, thats realistic to be spending 1.5K on car.Originally posted by Qitai:And minimum spending per month on car is $1K at the lowest end. So, you do the sum yourself. Plan $1.5K if you are unsure.
so u guys go figure how much u should be earning...