i won't buy a car in sg even if my income allows me to comfortably do so. bus and mrt is so convenient in sg. i can reach town in 30mins from punggol, for example. i don't have to worry about parking/jam/breakdown/roadrage drivers. if i'm feeling really tired that day, i'll just book a grab. 30-40$/trip, no problem. i just sit back relax until i reach home. i'll only own car if i'm living overseas like us, aus, nz where getting from place to place is difficult, where bus comes almost every 30 mins, and bus services stops at 430-5pm (in nz) and u have to travel after those hours. or owning a van where i can go on trips/camping and convert the back of my van into a sleeping area. a simple cheap van. if i'm going to fork out 1.5k/mth for a car, i would rather save or invest that same sum. for retirement, or even overseas trip.
Buy a car only if you can pay cash for the full amount without affecting your retirement plans. Few can. Most ppl convince themselves they need a car when they can't afford it.
Before smartphones become mainstream, I would agree that one of the main reasons to own a car is to save time. Before smartphones, the time spent on public transport is mostly just waiting to arrive at destination. However, times have changed, people taking public transport can do some basic work or get entertainment while commuting. While driving will simply be moving from place to place and the time spent driving cannot be used for other purpose.
If you drive, you also need factor in the time taken in traffic jams, finding parking lot, sending car to workshop for servicing/repairs, fetching some freeloader friends.
Glad you didn't commit the fallacy of calculating one's hourly salary to determine if it's worth paying 1.9k to save 16 hours. For most people with fixed income, it simply does not matter and it's just another spending.
Hi Kelvin, excellent examples and your calculation for expenses are for VERY ECONOMY drive style, which mostly matches bring you to office and back, but not to go around for better business. Cannot buy you the time you wish... I have my own statistics for the petrol, ERP and car park. 1- ERP per three-four days is eating 100 SGD if I really buy my time. Because if I drive, I have to go a lot to regain my $$$. 2- Petrol - my expenses are 1000 SGD per month. 3- Car parks - 300 SGD per month, coz I am parking at the BANKS, office towers, and shopping malls. So it definitely depends on the nature of business and lifestyle. But anyway, your videos are fantastic to help all of us to decide a lot of financial steps in SG. Thank you!
other than high cost of owning it, there's also hidden social issue bcuz most of car owners are man and likely pay full ownership cost while SG ladies enjoy the convenience and having much higher savings during retirement.
Buying a car also costs time in terms of opportunity cost. If you invested the 200k instead, that could grow to a significant amount due to compound interest, potentially buying you an early retirement. So I guess it just depends on when you want to save time.
When self driving protocol comes out I will consider owning a car, you technically don't save a lot of time because you can read books and use your mobile phone while commuting on a mrt but you can't do that while driving
@@shenbenjamin26 4yrs time IF COE still so high i will give up my car liao haha. Take grab not cheap also....1 way average $25....1 day 1 trip....1 month $750 haha
If one work need to travel like a property agent then it really make sense. Thot from my place to the nearest bus stop is 10mins walk and I need to rake bus to MRT then bus again I won't want to buy a car now as this will reduce my investment opportunity. Of any of my investment area able to generate enough for paying a car, then I will do it.
I'm Malaysian, 31 yo without a car. My house nearby LRT and since MCO i can say now everything can thru zoom and I'm much happier because I can save money from using Grab! :)
in singapore, if u need to go and spend so much time to calculate how much u need to pay every month to own a car, odds are you arent rich enough/earning enough lol.
ONLY In SG where a Single Pdt can be Taxed 8 TIMES in 8 Different WAYS. COE is An INVISIBLE Piece o paper to basically a Licence/Permit to Purchase a Vehicle in SG. This is only Part of the Multi Level Taxation on Vehicles in SG that makes it THE MOST EXPENSIVE Country for Car Ownership. Vehicles are Slapped with 8 Different Taxations on A Single Product - Import Tax - ARF - COE - Registration - Road Tax - ERP - Petrol Tax - GST It is A Well Devised System to Squeeze the Citizens in Multi Faceted Taxation System. 61% Voted to Be SCREWED
Quite accurate but do consider that almost all drivers use some form of petrol discount card to get 20% savings on their petrol. Also, theres always coe cars at a 50%discount, albeit a higher maintenance cost.
And considering the fact that car in SG is a depreciating asset, you will get a diminishing return. So if you are single, you really need to consider whether there is a need to own a car.
Most Singaporean in this generation belong to 2 child families & their parents would likely own at least a HDB worth about half a million plus savings & CPF. What's a 150K vehicle when the day comes when they receive the windfall? Do the majority of this generation fall into this category?
Some people are also driving Grabhitch to and from office as a way to cover the costs of their car. With around $15 per pax per trip, it could go up to a nice amount, at least cover parking + ERP for the day la😁
The car taxes and COE is rebated/refunded and depreciated equally over the 10 years. This is the "paper value" and rather fair, if you think about it. Imagine that the govt refunds this tax you paid! The complainers and those who blame govt always forget this part. btw the real crooks are the car dealers. Have you calculated the profits they make? This part is totally lost and given away.
I will buy a car if I can also afford a chauffeur. Hate taking care of it; hate looking for a parking lot; hate looking for directions; hate taking it to the workshop; hate taking it for inspection; hate topping up petrol; hate not able to drink; hate topping up cash card.........
I took min car loan and tenure of 20k and 2 year loan to siam the admin fee…..all depend on the car dealership tho….C&C must take 70k 7 yrs so I go elsewhere
i like how this video is detailed yet relevant. finally some justification for my gutfeel that people should be earning 10-20k/month before buying a car in singapore. total madness here. getting a property near mrt (which tend to hold its value better too) may make more financial sense than buying a car. but it's definitely more than that, which is why COE prices are still soaring, no lack of demand at all.
Aiyoh , must buy cars like buying stocks . We got a cat A COE car about $30k just before the pandemic became a panic in early 2020 . Years ago we got one for $6k .
I know a lot of Malaysian will rather eat air to own a car, a house, eat nice food without even having any means. Their solution is beg, steal and borrow. Just to try to show off to their friends they are rich! But in Singapore nobody can afford to do that, because in order to own a car you need to have supporting documents like bank statements and salary to support before you can own a car. Is not so easy like you claim. The other thing is you can never compare yourself who only live on $1k a month to have a car, Singapore public transport system is very good enough for people like you. Perhaps you should share some light on that rather then talk about something you cannot afford and claim it is too expensive. Cars in Singapore are only for people who can really afford, even though it is expensive to you, but reality is people are still buying and not complaining. So what is your point here really?
I always have the urge to buy a car because I live quite far away from work. But I think of it this way. It is no longer worth it if the money I spend on a car can buy me one set of the latest iphone every month
Personal tip - buy reliable brands / models at tail end of extended COE lifespan, depreciation will drop to 6-7K per year and monthly expenditure 1K+a bit. Quick hack - buy manual to drop price to 4-5 K depre ;)
@@wardumb big risk….high risk high reward though. Buy such 18yo used car cannot really test drive and what happen if the gearbox up lorry after you bought sia. Can sue the car dealer?
@@JRambonian for sure, there's usually a checklist i go for and ask for servicing history + look for key components based on the history of the model / make you're looking at. Depends but there're like lemon law if you buy from dealer although I wouldn't rely on it. Buying direct from end user brings better deal albeit even riskier. but I guess the best solution is like Kelvin mentioned make sure finances are straight before doing it!
Most Singaporean in this generation belong to 2 child families & their parents would likely own at least a HDB worth about half a million plus savings & CPF. What's a 150K vehicle when the day comes when they receive the windfall? Do the majority of this generation fall into this category?
i won't buy a car in sg even if my income allows me to comfortably do so. bus and mrt is so convenient in sg. i can reach town in 30mins from punggol, for example. i don't have to worry about parking/jam/breakdown/roadrage drivers. if i'm feeling really tired that day, i'll just book a grab. 30-40$/trip, no problem. i just sit back relax until i reach home.
i'll only own car if i'm living overseas like us, aus, nz where getting from place to place is difficult, where bus comes almost every 30 mins, and bus services stops at 430-5pm (in nz) and u have to travel after those hours. or owning a van where i can go on trips/camping and convert the back of my van into a sleeping area. a simple cheap van.
if i'm going to fork out 1.5k/mth for a car, i would rather save or invest that same sum. for retirement, or even overseas trip.
There are a million cars in Singapore. Most own for the convenience.
u do know motorbikes exist right….?
Buy a car only if you can pay cash for the full amount without affecting your retirement plans. Few can. Most ppl convince themselves they need a car when they can't afford it.
Before smartphones become mainstream, I would agree that one of the main reasons to own a car is to save time. Before smartphones, the time spent on public transport is mostly just waiting to arrive at destination. However, times have changed, people taking public transport can do some basic work or get entertainment while commuting. While driving will simply be moving from place to place and the time spent driving cannot be used for other purpose.
good. Do that
I used to own a car but after careful calculations its cheaper for me to grab/gojek/taxi 3 times a day ($20 trips) than owning a car.
Most of us living in Singapore actually don't even need a car. Just use grab and gojek or if need to, rent a car.
Ya lo, SG got other ride hailing app also mah
If you drive, you also need factor in the time taken in traffic jams, finding parking lot, sending car to workshop for servicing/repairs, fetching some freeloader friends.
Glad you didn't commit the fallacy of calculating one's hourly salary to determine if it's worth paying 1.9k to save 16 hours. For most people with fixed income, it simply does not matter and it's just another spending.
Hi Kelvin, excellent examples and your calculation for expenses are for VERY ECONOMY drive style, which mostly matches bring you to office and back, but not to go around for better business. Cannot buy you the time you wish... I have my own statistics for the petrol, ERP and car park. 1- ERP per three-four days is eating 100 SGD if I really buy my time. Because if I drive, I have to go a lot to regain my $$$. 2- Petrol - my expenses are 1000 SGD per month. 3- Car parks - 300 SGD per month, coz I am parking at the BANKS, office towers, and shopping malls. So it definitely depends on the nature of business and lifestyle. But anyway, your videos are fantastic to help all of us to decide a lot of financial steps in SG. Thank you!
other than high cost of owning it, there's also hidden social issue bcuz most of car owners are man and likely pay full ownership cost while SG ladies enjoy the convenience and having much higher savings during retirement.
Would be good to work out what is a break even point (of COE) between owning a Toyota Altis car vs taking grab everywhere
Buying a car also costs time in terms of opportunity cost. If you invested the 200k instead, that could grow to a significant amount due to compound interest, potentially buying you an early retirement. So I guess it just depends on when you want to save time.
When self driving protocol comes out I will consider owning a car, you technically don't save a lot of time because you can read books and use your mobile phone while commuting on a mrt but you can't do that while driving
More for convenience if u have young kids and elderly
@@JRambonian you can still take grab. It's definitely way cheaper
@@shenbenjamin26 4yrs time IF COE still so high i will give up my car liao haha. Take grab not cheap also....1 way average $25....1 day 1 trip....1 month $750 haha
Great insights on car ownership costs in Singapore, Kelvin!
If one work need to travel like a property agent then it really make sense. Thot from my place to the nearest bus stop is 10mins walk and I need to rake bus to MRT then bus again I won't want to buy a car now as this will reduce my investment opportunity. Of any of my investment area able to generate enough for paying a car, then I will do it.
That's quite a conservative rule. I don't think a lot of the car owners you see on the road earn $20k a month.
Thanks Kelvin for sharing the Time Opportunity part, I'm salaried but I think me and my partner's time are worth $2k per month
Moral of the story: Don't get a car. Mrt stations are everywhere
Could you do a video on peak hours and off peak hours car rental? How much will that cost and is it really better?
I'm Malaysian, 31 yo without a car. My house nearby LRT and since MCO i can say now everything can thru zoom and I'm much happier because I can save money from using Grab! :)
in singapore, if u need to go and spend so much time to calculate how much u need to pay every month to own a car, odds are you arent rich enough/earning enough lol.
ONLY In SG where a Single Pdt can be Taxed 8 TIMES in 8 Different WAYS.
COE is An INVISIBLE Piece o paper to basically a Licence/Permit to Purchase a Vehicle in SG.
This is only Part of the Multi Level Taxation on Vehicles in SG that makes it THE MOST EXPENSIVE Country for Car Ownership.
Vehicles are Slapped with 8 Different Taxations on A Single Product
- Import Tax
- ARF
- COE
- Registration
- Road Tax
- ERP
- Petrol Tax
- GST
It is A Well Devised System to Squeeze the Citizens in Multi Faceted Taxation System.
61% Voted to Be SCREWED
Hybrid Altis 1.8l is more ex
New ABT 200k
1.6na is cheaper ABT 155k
I’m driving a similar car, same average drive distance per month. Before discount is around $600sgd per month on petrol
Quite accurate but do consider that almost all drivers use some form of petrol discount card to get 20% savings on their petrol. Also, theres always coe cars at a 50%discount, albeit a higher maintenance cost.
You missed out factoring in those sales jobs where company sponsor about 900 to 1200 per month for car ownership.
Overtime it is a WANT not a NEED
How about Car Fines and Saman plus demerit points leh?
Hi kelvin… can u make a video on how to calculate the intrinsic value of a stock using the different tools
Imagine you invest $1991 in QQQ every month instead for the next 10 years. Then wait for a good time to sell after that....
And considering the fact that car in SG is a depreciating asset, you will get a diminishing return. So if you are single, you really need to consider whether there is a need to own a car.
I loved you accent 😀 and your confidence too. But it sounds funny 😂😂😂
Most Singaporean in this generation belong to 2 child families & their parents would likely own at least a HDB worth about half a million plus savings & CPF.
What's a 150K vehicle when the day comes when they receive the windfall?
Do the majority of this generation fall into this category?
As always, great video. It's more easy to just show other this video than to explan to them.
Some people are also driving Grabhitch to and from office as a way to cover the costs of their car. With around $15 per pax per trip, it could go up to a nice amount, at least cover parking + ERP for the day la😁
Might as well don’t drive sia whahaha
People buy car for convenience but those that drive grabhitch buy it for more inconvenience
The car taxes and COE is rebated/refunded and depreciated equally over the 10 years. This is the "paper value" and rather fair, if you think about it. Imagine that the govt refunds this tax you paid! The complainers and those who blame govt always forget this part. btw the real crooks are the car dealers. Have you calculated the profits they make? This part is totally lost and given away.
can also do another video of buying a used toyota since they are much more reliable even at 20 years old
Got car no need to carry all your stuff with u everywhere u go. How come no one mention this?
I will buy a car if I can also afford a chauffeur. Hate taking care of it; hate looking for a parking lot; hate looking for directions; hate taking it to the workshop; hate taking it for inspection; hate topping up petrol; hate not able to drink; hate topping up cash card.........
Just use a ride hailing service lah
Would appreciate if you covered motorbikes for us riders too!
A car friend tell me if he is driving slower than the bus why should buy a car.
great content! thank you!
i bought without car loan to cut down the interest rate charges. got slapped with a extra "admin fee" for paying in full. The car market is dark
Yup... happened to me 4yrs ago too. Somehow the car industry wants u to borrow for a certain number of yrs n probably make a commission.
This is quite standard practice lol I believe the car company would have informed you prior anywya
@@MaxJoseph999 Yes, they did in advance
I took min car loan and tenure of 20k and 2 year loan to siam the admin fee…..all depend on the car dealership tho….C&C must take 70k 7 yrs so I go elsewhere
For the time calculation, also need to include walking to car, finding a parking space haha
Hi Kelvin, you have not add the fines yet.. In SG, every driver will get fines at least once.. haha..
i like how this video is detailed yet relevant. finally some justification for my gutfeel that people should be earning 10-20k/month before buying a car in singapore. total madness here. getting a property near mrt (which tend to hold its value better too) may make more financial sense than buying a car. but it's definitely more than that, which is why COE prices are still soaring, no lack of demand at all.
owning a car is like giving government more taxes in sg. it's definitely a smart way for gov to tax on your convenience
In my own opinion to Owning car, need at least 1.4 Million networth or $20k income per month.
If everyone shares the same view, there will be much lesser cars on the road. But massive human jam at all mrt stations and bus interchange/stops.
Sometime want grab also no car want fetch…
What's your target income before u plan to own car? U have kids n wife to fetch tuition, etc
Probably when i can earn at least $15k-20k a month
Can you make a video on $6000 budget. Plz 💗💗
Living on 6k budget?
@@KelvinLearnsInvesting yes. Please
Buy a car only if you need it.
Waste of money.
Stay near mrt.
Aiyoh , must buy cars like buying stocks . We got a cat A COE car about $30k just before the pandemic became a panic in early 2020 .
Years ago we got one for $6k .
I know a lot of Malaysian will rather eat air to own a car, a house, eat nice food without even having any means. Their solution is beg, steal and borrow. Just to try to show off to their friends they are rich!
But in Singapore nobody can afford to do that, because in order to own a car you need to have supporting documents like bank statements and salary to support before you can own a car. Is not so easy like you claim. The other thing is you can never compare yourself who only live on $1k a month to have a car, Singapore public transport system is very good enough for people like you. Perhaps you should share some light on that rather then talk about something you cannot afford and claim it is too expensive.
Cars in Singapore are only for people who can really afford, even though it is expensive to you, but reality is people are still buying and not complaining. So what is your point here really?
He have to create new content every 2-3days!
why the hatred towards malaysian tho? not even relevant here...
Only buy a car when you can afford it and had young kids. if i dun have kids, i will probably just stick to grab and public transport.
And if u know the trick u can own a car for free for few yrs every decade
Omg, I can cheapskate lifestyle too. I think majority in SG are within 1.2k pm per pax??
Also also contingent cost, when gets into an accident.
Genius video
Am really making good deals this days I came prepared for crypto currency this season.getting more profit ever since Luna last raise
Hello if you don't mind am just a mouth old in the crypto world can you give me more hints on crypto and how to profit from it
You have to study more on it before any risk taken , I recommend bryaaanwalkerfx
Bryaaanwalkerfx👇
On IG
Thanks for the tips I will leave him a message shortly
I always have the urge to buy a car because I live quite far away from work. But I think of it this way. It is no longer worth it if the money I spend on a car can buy me one set of the latest iphone every month
Change job or change house haha
Having a company car is the best la... 😂
Chao chao 10k
Personal tip - buy reliable brands / models at tail end of extended COE lifespan, depreciation will drop to 6-7K per year and monthly expenditure 1K+a bit.
Quick hack - buy manual to drop price to 4-5 K depre ;)
Not worth when COE is so high now. Either don’t drive or buy new car imo. I do not even want to renew my own car whereby i know the condition haha
@@JRambonian oh don't buy just renew one, there are those left 2 years at the back end, drive it send scrape when life's up
@@wardumb big risk….high risk high reward though. Buy such 18yo used car cannot really test drive and what happen if the gearbox up lorry after you bought sia. Can sue the car dealer?
@@JRambonian for sure, there's usually a checklist i go for and ask for servicing history + look for key components based on the history of the model / make you're looking at. Depends but there're like lemon law if you buy from dealer although I wouldn't rely on it. Buying direct from end user brings better deal albeit even riskier.
but I guess the best solution is like Kelvin mentioned make sure finances are straight before doing it!
@@wardumb when you send for scrape do you get some money back?
The numbers are significantly inflated due to the sky-high COE prices currently. Imagine having to earn ~7.5k just to drive a bnb Altis lol. Smh.
ya ya ya, i own a car...... chng
one very good reason is you only live once.
many are in self denial. they have 100 reasons why they need the car.
Without watching the video first, i'll say 7000/month
Really meh 7k per month enough. Personally I think it's not enough without car.
Think he meant for dual income family, 7000 per month per spouse/working adult
@@iiskingsley Then okay lor. If household income is 14k PM then can easily afford a car.
$7k not enough wor
Singapo
First!
How many Toyota drivers earn 20k 🥲
You can buy a car to drive GRAB , so it becomes you money making machine
Most Singaporean in this generation belong to 2 child families & their parents would likely own at least a HDB worth about half a million plus savings & CPF.
What's a 150K vehicle when the day comes when they receive the windfall?
Do the majority of this generation fall into this category?