Sold my car last year (Altis also) and realised that I saved more time taking public transport to most places compared to driving. When I was driving, time is wasted on walking up to carparks, waiting for car to warm up, traffic jams almost everywhere and looking for places to park at the destination. The best part is of course the money saved from not owning a car, about $2K every month which can be saved up or used for other stuffs like travelling!
Interestingly, I realized I have less time when I own a car. I tend to go places, spend more. Now that I don’t own a car anymore. I spend more leisure time around my neighborhood. Walk the park, learn hobbies, etc.
S$158K for a Toyota? In Australia that amount buys you TWO brand new Mercedes A120 Sedan and you still have around S$30K left over for your next holiday to Tokyo.
158k for Altis. 20 years ago I bought mine for 59k. Coe was 9k. I renewed coe once for 10 years costing 40k? After this, I will not drive. Singapore should charge more for road usage, not ownership. Owning a car doesn’t clog up the roads. Driving it does. With satellite tracking, road usage can be charged accurately according to time of use and distance.
The only reason I can think of owning a car is when you stay in a remote place where public transport is infrequent or non-existent like in the countryside or remote suburb. I used to own a car. Ditched it when I realised that I can't hardly control the unpredictable expenses that comes with car ownership, e.g. tire punctures, car parts spoiling and worse... accidents sometimes not due to your fault. And I couldn't even clocked a few thousand walking steps, started to put on weight and health in general suffered. Now I'm able to save more, convert all this liability expenditure into getting a home and other investments to help me retire early. My health improves as I am able to adopt a healthier lifestyle through walking more, and use the commuting time to read, catch up with family and friends on social media and rest. Live life with a smaller footprint on Earth, you'll be happier.
For 5K should get a foldable bike if you really need to walk a long distance from MRT to Office or Home. Deduction of 1K CPF contribution and 1K monthly savings on the payday itself leaves only 3K for everything else. Such a person buying a car would have to eat and live very frugally.
My husband walks/ride a bicycle to nearby locations or even ride long distance to meet Carousell buyers for small items as he hates to find parking lots. We tried living without a car for a few months but for health reasons as he cannot take vaccine, we bought another so he doesn't have to ride in congested MRT to go to work during the re-opening stage. For the first time in our life, we'd make a good profit in the months right after purchase if we were to sell it. Anyway, always buy second hand cars, it is an asset that depreciate a lot right out of the showroom. We have only 2 new cars in our lifetime in our late 20s and early 30s at the peak of our careers but we have countless used cars. James could consider a 1-3 year old used car if he really needed one to reduce his monthly outlay.
I bought a arguably cheap car (in today's market), $10k 15 months Coe left. My company pays $600 car allowance (cpf deductible) and parking, petrol are on claim basis. But i can make 50cents with every km of mileage claimed because of my car fuel consumption. When looking for a car, its easy to be attracted by dealer's sweet talk and temptation to push your budget. But its important to stick to your budget. I love cars and it's my dream to own one. But i forced myself to be rational and only got a cheap car, without loan for a short term, just to see and experience the ownership journey. Fortunately my monthly cost is kept low as i claim most of my stuff from the company and make a profit from fuel claims. Unfortunately i think i wont be buying another car after this one... Even if i can afford it, the cost just doesnt justify yet. Sincerely hope something can be done to the COE system so that it'll not just be a money game. Just my thoughts
Never ever take out a loan for "wants". If you can't pay it in full. It means that You can't afford it. Go ask your merc and Lamborghini friends who took out a loan. They are in debt.
Before anyone considers a car for "work", let me bring your focus to this 4-year old video from Wendover Productions titled The Economics of Private Jets. He does a calculation taking into consideration how much you are paid per hour. So if time is indeed money, is it justified for the salary you receive? It is not about whether you can afford it. It is the cold hard economics of whether it really saves you the time? You even have to take into consideration time wasted going around a carpark to find a lot to store this machine! You could even save more time because the taxi just takes you there without wasting this time. There is also this new found WFH or hybrid work style that will make owning a car for work in Singapore rather silly. So, does car ownership for work save time for travel within Singapore? The economics do not add up even if you are paid $11,000 or more a month.
Aiyo ownself don't buy can already. Most car buyers don't see a car as just a form of transport nor evaluate their decision solely based on cost and numbers. If one does that in SG, a car will 100% never be justifiable. Has it ever occurred to you that some put a huge premium on: -convenience (shelter from the weather, boot to store stuff like a mobile storeroom, no need to wait for grab or bus etc); -privacy when travelling; -love for cars; -love for driving? The list goes on. What you're saying is no revelation, every car buyer *already* knows that. They buy because they put a value on other benefits that only a car can give. Cheers.
@SGMaleKaren-si3gw then you are honest about it. Many are not and will cite fetching kids, fetching parents when at the end of the day, it is a luxury item. I dare say in Singapore's context, a prestige item. Was an owner. Saw where all that money is going, can't help but think it is a scam every aspiring car owner fell for. Other entities got richer except yourself. Love of driving? 😅 Driving as a commute has to be worse experience ever. Quit the car and made myself richer. It is like Ronnie Chieng's comedy. You want your children to be doctor but you refuse to see the doctor. Make yourself richer but prevent other people from getting your money. Maybe it is the stage in my life. I'm older and perhaps cynical on the value of the least used depreciating asset in Singapore's context.
@@SGMaleKaren-si3gwOne can still do all these for a fraction of the cost in Malaysia or Australia, etc, just not Singapore unless one does not mind "throwing money down the drain" so to speak in exchange for those "privacy" or "storage space".
If you drive for sales job. You likely able to get reimbursement on petrol, car park and ERP or fixed car allowance. Investment return may have a higher return than car loan interest right? Erhem DBS foreign currency FD 5.1% erhem. Plus the PV>FV thing so is it really wise to advise anyone to buy a car by cash? You are also miss the opportunity to build your credit score. Finally if your income is 5k, you probably want to so Grabhitch from time to time to help ease the burden.
Rather than spending $158K on a Toyota, I might as well use it to top up my CPF Enhanced Retirement Sum that gives me $2K plus per month after 62 years old until I die. Why pay so much for a Japanese car it didn’t make sense to most Singaporeans who might not have enough saved in their CPF that pays them enough to live on when they retire. Remember the $158K also becomes zero money after 10 years, whereas if it is saved the opposite effect happens.
I think the full car ownership cost should be under James since he would also be using it for his sales job. People tend to overlook the fact that most people are constantly checking phones or sometimes even resting during commute, and therefore the commute time on public transport is not exactly wasted. Additionally, families or friends may have the expectation for a car owner to ferry them around more frequently which can also take up one's time and energy.
Buying a car is great, and could even be a milestone achievement marker in a person's life. HOWEVER, I strongly agree with Josh that you should avoid taking a car loan simply becaues it is not worth paying so much more for a car with that kind of interest tagged onto your car price. Your end game depreciation cost is so much higher and not worth.
No need to buy common Merz or Porsche car in Spore. When in Europe , rent a Bugatti sport n drive 1 month all round Europe coast line. Remember to take tons of photos to show your friends in Spore n M'sia . You will hv better and memorable experience Cheaper ,too !!
You will be crazy to buy at car with $5k/m salary (take home). If you put 1+k a month into a simple ETF. In 10 years, compounded, you will be looking at a very considerable sum towards your retirement. Don’t be stupid.
$5000 is enough for one person . Personally, i don't think it is enough for a couple. I track my spending every month, My minimum spending per month as a couple is around S$5000 to S$6000 a month. Maybe I have a helper at home. Some month we spend more than S$9,000 a month like paying our integrated shield plan insurance which cost around S$4200(premium for the policy plus rider for one person) . Some month we buy an apple studio monitor which cost me S$2300. Some months I pay for my Evolve MMA gym yearly subscription which costs around S$3900 , By the way, I take public transport, I only pay S$64 a month on fixed monthly transport fare for senior citizen
We are blessed that we can buy from PI n Agent . I buy from Swee Seng for my Toyota Sienta in June 2016 for $98800 when COE at $47k ! Cheaper ,advance Engine, Japan made quality & CEVS rebate of $10k . Better than Indonesia made Sienta . My private WS allowed me to bring my own Engine oil for simple servicing. Labour cost of $35 & oil filter of $15 b4 GST. Spark plug of Denso Iridium need to chge every 80k km ! If u intend to buy from PI in the future, i can be your adviser . I intend 2 revalidate my COE b4 Aug 2026 😊
Yup n i can see people like James who is in sales needs to own a car, Josh didn’t take into considerations that James’s company will pay for business travel allowances…
S$5 K salary is not a dream Job. Even fresh poly graduate around age 20 in retail can earn S$4K to S$5K a month.(Salary plus allowance plus commission). as an optometrist. If you have full optometrist license, a poly graduate can earn more than S$5 K a month> Yes That is what Owndays is paying . S$4200 salary plus S$800 allowance plus commission.
He can't afford the car. To buy a car like this you need to have an investment that can generate the funds to pay for the financing and the outgoings for the car. Until such time the car is not affordable.
The time versus the actual earnings might not even be worth it. Might as well focus on his day job and try earn more money from there. If he has a fixed paying job, then perhaps he should try re-evaluating his worth and whether or not the company is paying him a justified amount (have to be realistic when one does this).
This $5K topic still need to discuss? Parent allowance Primary school Kids tuition fees House mortgage Utilities, broadband & hp bill, scc conservancy fee, Annual or bi-annual holiday Eat out Weekly shopping in Mall. If you are single, that is enough.
For 6k gross pay, don’t even dream about it.. at today’s prices, I’d say above 10k income is prudent to commit and concurrently sustain other life expenses.
@@joshconsultancy Sorry just saw ur reply Currently july 24, honda shuttle will be the most vfm car. Though i dont really like the design Actually u can own a car in sg for few yrs or make a profit out of it. Similar to stock n shares, just buy at the right time
I have 20k+ and i still do an older car. Just buy those cars left with 2-3yrs COE (7-8yrs old cars) and once 10yrs is up, just change another. This way you can really save on the depreciation versus buying a new car (and you get to try out many cars, I've changed more than 30 cars since 2004 when i bought my first car, which was a Honda Accord, sometimes I even buy cars left the 6-7mths, just because the depreciation is so much cheaper)
Sold my car last year (Altis also) and realised that I saved more time taking public transport to most places compared to driving. When I was driving, time is wasted on walking up to carparks, waiting for car to warm up, traffic jams almost everywhere and looking for places to park at the destination. The best part is of course the money saved from not owning a car, about $2K every month which can be saved up or used for other stuffs like travelling!
Interestingly, I realized I have less time when I own a car. I tend to go places, spend more. Now that I don’t own a car anymore. I spend more leisure time around my neighborhood. Walk the park, learn hobbies, etc.
Then it may be case of a limitation of choice simplifies lifestyle?
S$158K for a Toyota? In Australia that amount buys you TWO brand new Mercedes A120 Sedan and you still have around S$30K left over for your next holiday to Tokyo.
Yup its true =)
It's a singapore car tax
158k for Altis. 20 years ago I bought mine for 59k. Coe was 9k. I renewed coe once for 10 years costing 40k? After this, I will not drive. Singapore should charge more for road usage, not ownership. Owning a car doesn’t clog up the roads. Driving it does. With satellite tracking, road usage can be charged accurately according to time of use and distance.
The only reason I can think of owning a car is when you stay in a remote place where public transport is infrequent or non-existent like in the countryside or remote suburb. I used to own a car. Ditched it when I realised that I can't hardly control the unpredictable expenses that comes with car ownership, e.g. tire punctures, car parts spoiling and worse... accidents sometimes not due to your fault. And I couldn't even clocked a few thousand walking steps, started to put on weight and health in general suffered. Now I'm able to save more, convert all this liability expenditure into getting a home and other investments to help me retire early. My health improves as I am able to adopt a healthier lifestyle through walking more, and use the commuting time to read, catch up with family and friends on social media and rest. Live life with a smaller footprint on Earth, you'll be happier.
General rule of thumb is yearly salary or 20% of gross household income so income shld be around 160k
For 5K should get a foldable bike if you really need to walk a long distance from MRT to Office or Home. Deduction of 1K CPF contribution and 1K monthly savings on the payday itself leaves only 3K for everything else. Such a person buying a car would have to eat and live very frugally.
$5k gross, $4k nett after cpf deduction, should not even consider a car.
In this example is $5000 nett which is $6250 gross. It’s also going to be tight
My husband walks/ride a bicycle to nearby locations or even ride long distance to meet Carousell buyers for small items as he hates to find parking lots. We tried living without a car for a few months but for health reasons as he cannot take vaccine, we bought another so he doesn't have to ride in congested MRT to go to work during the re-opening stage. For the first time in our life, we'd make a good profit in the months right after purchase if we were to sell it. Anyway, always buy second hand cars, it is an asset that depreciate a lot right out of the showroom. We have only 2 new cars in our lifetime in our late 20s and early 30s at the peak of our careers but we have countless used cars. James could consider a 1-3 year old used car if he really needed one to reduce his monthly outlay.
Me happy sticking to my BMW. Bus, Mrt, walking
😄
Hidden charges also car parking fines. Worst if kenna accident. (If own fault) next year premium will increase. Basically owning a car sucks u dry.
Agree on many other hidden costs
I bought a arguably cheap car (in today's market), $10k 15 months Coe left. My company pays $600 car allowance (cpf deductible) and parking, petrol are on claim basis. But i can make 50cents with every km of mileage claimed because of my car fuel consumption. When looking for a car, its easy to be attracted by dealer's sweet talk and temptation to push your budget. But its important to stick to your budget. I love cars and it's my dream to own one. But i forced myself to be rational and only got a cheap car, without loan for a short term, just to see and experience the ownership journey. Fortunately my monthly cost is kept low as i claim most of my stuff from the company and make a profit from fuel claims. Unfortunately i think i wont be buying another car after this one... Even if i can afford it, the cost just doesnt justify yet. Sincerely hope something can be done to the COE system so that it'll not just be a money game. Just my thoughts
Good sharing
Never ever take out a loan for "wants". If you can't pay it in full. It means that You can't afford it. Go ask your merc and Lamborghini friends who took out a loan. They are in debt.
Before anyone considers a car for "work", let me bring your focus to this 4-year old video from Wendover Productions titled The Economics of Private Jets. He does a calculation taking into consideration how much you are paid per hour. So if time is indeed money, is it justified for the salary you receive? It is not about whether you can afford it. It is the cold hard economics of whether it really saves you the time? You even have to take into consideration time wasted going around a carpark to find a lot to store this machine! You could even save more time because the taxi just takes you there without wasting this time. There is also this new found WFH or hybrid work style that will make owning a car for work in Singapore rather silly. So, does car ownership for work save time for travel within Singapore? The economics do not add up even if you are paid $11,000 or more a month.
Aiyo ownself don't buy can already. Most car buyers don't see a car as just a form of transport nor evaluate their decision solely based on cost and numbers. If one does that in SG, a car will 100% never be justifiable.
Has it ever occurred to you that some put a huge premium on:
-convenience (shelter from the weather, boot to store stuff like a mobile storeroom, no need to wait for grab or bus etc);
-privacy when travelling;
-love for cars;
-love for driving?
The list goes on.
What you're saying is no revelation, every car buyer *already* knows that. They buy because they put a value on other benefits that only a car can give. Cheers.
@SGMaleKaren-si3gw then you are honest about it. Many are not and will cite fetching kids, fetching parents when at the end of the day, it is a luxury item. I dare say in Singapore's context, a prestige item. Was an owner. Saw where all that money is going, can't help but think it is a scam every aspiring car owner fell for. Other entities got richer except yourself. Love of driving? 😅 Driving as a commute has to be worse experience ever. Quit the car and made myself richer. It is like Ronnie Chieng's comedy. You want your children to be doctor but you refuse to see the doctor. Make yourself richer but prevent other people from getting your money.
Maybe it is the stage in my life. I'm older and perhaps cynical on the value of the least used depreciating asset in Singapore's context.
@@SGMaleKaren-si3gwOne can still do all these for a fraction of the cost in Malaysia or Australia, etc, just not Singapore unless one does not mind "throwing money down the drain" so to speak in exchange for those "privacy" or "storage space".
If you drive for sales job. You likely able to get reimbursement on petrol, car park and ERP or fixed car allowance. Investment return may have a higher return than car loan interest right? Erhem DBS foreign currency FD 5.1% erhem. Plus the PV>FV thing so is it really wise to advise anyone to buy a car by cash? You are also miss the opportunity to build your credit score. Finally if your income is 5k, you probably want to so Grabhitch from time to time to help ease the burden.
Fx FD has fx risk.
Search for the returns without leverage to ensure patience in the approach 👌🏻
Rather than spending $158K on a Toyota, I might as well use it to top up my CPF Enhanced Retirement Sum that gives me $2K plus per month after 62 years old until I die. Why pay so much for a Japanese car it didn’t make sense to most Singaporeans who might not have enough saved in their CPF that pays them enough to live on when they retire. Remember the $158K also becomes zero money after 10 years, whereas if it is saved the opposite effect happens.
True true. Vote noted
I think the full car ownership cost should be under James since he would also be using it for his sales job. People tend to overlook the fact that most people are constantly checking phones or sometimes even resting during commute, and therefore the commute time on public transport is not exactly wasted. Additionally, families or friends may have the expectation for a car owner to ferry them around more frequently which can also take up one's time and energy.
Buying a car is great, and could even be a milestone achievement marker in a person's life. HOWEVER, I strongly agree with Josh that you should avoid taking a car loan simply becaues it is not worth paying so much more for a car with that kind of interest tagged onto your car price. Your end game depreciation cost is so much higher and not worth.
Thank you for your support. Once it is full price paid instead of hidden behind a loan, affordability is really tested...
No need to buy common Merz or Porsche car in Spore. When in Europe ,
rent a Bugatti sport n drive 1 month all round Europe coast line.
Remember to take tons of photos to show your friends in Spore n M'sia .
You will hv better and memorable experience
Cheaper ,too !!
LOL NICE! =)
I reckon at least Gross income 10k per month would be safe or share with family to buy together.
Vote noted. I’ve posted a poll also on our telegram group t.me/pi21k
Tried to join telegram chat. Did a typo for the math and got banned
Think the near future distance travel rate are the best outcome with COE price reduction
As a new car buyer never consider a new car. Reasons are obvious.
People will do it when they want to do it. Some people need to learn the hard way. Go ahead James! Goooooooood Luuuuccckkk! YOLO right? 😂😂
As a father, my yearly expenses is $80,000 a month. So, I need to earn $100,000 a year
You will be crazy to buy at car with $5k/m salary (take home). If you put 1+k a month into a simple ETF. In 10 years, compounded, you will be looking at a very considerable sum towards your retirement. Don’t be stupid.
$5000 is enough for one person . Personally, i don't think it is enough for a couple. I track my spending every month, My minimum spending per month as a couple is around S$5000 to S$6000 a month. Maybe I have a helper at home. Some month we spend more than S$9,000 a month like paying our integrated shield plan insurance which cost around S$4200(premium for the policy plus rider for one person) . Some month we buy an apple studio monitor which cost me S$2300. Some months I pay for my Evolve MMA gym yearly subscription which costs around S$3900 , By the way, I take public transport, I only pay S$64 a month on fixed monthly transport fare for senior citizen
Good sharing Sebastian
Never take any loans to buy something that depreciates and with hidden and running costs
We are blessed that we can buy from PI n Agent . I buy from Swee Seng for my Toyota Sienta in June 2016 for $98800 when COE at $47k ! Cheaper ,advance Engine, Japan made quality & CEVS rebate of $10k . Better than Indonesia made Sienta . My private WS allowed me to bring my own Engine oil for simple servicing. Labour cost of $35 & oil filter of $15 b4 GST. Spark plug of Denso Iridium need to chge every 80k km ! If u intend to buy from PI in the future, i can be your adviser . I intend 2 revalidate my COE b4 Aug 2026 😊
Cost of owning a car in Singapore really very high...
Yup n i can see people like James who is in sales needs to own a car, Josh didn’t take into considerations that James’s company will pay for business travel allowances…
Yes that’s why I hope to raise more awareness to prudence on it. Valid point on company allowance for car for certain job roles
It’s prudent to take a loan of 100k .Already share this video with my son
It is not prudent to take a personal loan . The effective interest rate is more than 6%
Went up 3k for cat A, did he manage to buy at before the rise ?
Dealers control the selling price
Nope...definitely not enough. Unless u want to be rich....rich is debt that is...lol...
Your vote noted. Join our telegram group t.me/pi21k
we’re running a poll on it too 👌🏻
28 for 5k it a dream job not all will get this salary when at age
S$5 K salary is not a dream Job. Even fresh poly graduate around age 20 in retail can earn S$4K to S$5K a month.(Salary plus allowance plus commission). as an optometrist. If you have full optometrist license, a poly graduate can earn more than S$5 K a month> Yes That is what Owndays is paying . S$4200 salary plus S$800 allowance plus commission.
He can't afford the car. To buy a car like this you need to have an investment that can generate the funds to pay for the financing and the outgoings for the car. Until such time the car is not affordable.
James in real life would be driving grab to soften the expense. lol.
Strongly discourage that to James. Stay tuned, I’ve a new sharing on it soon
The time versus the actual earnings might not even be worth it. Might as well focus on his day job and try earn more money from there. If he has a fixed paying job, then perhaps he should try re-evaluating his worth and whether or not the company is paying him a justified amount (have to be realistic when one does this).
This $5K topic still need to discuss?
Parent allowance
Primary school Kids tuition fees
House mortgage
Utilities, broadband & hp bill, scc conservancy fee,
Annual or bi-annual holiday
Eat out
Weekly shopping in Mall.
If you are single, that is enough.
What abt parents' allowances ?
For 6k gross pay, don’t even dream about it.. at today’s prices, I’d say above 10k income is prudent to commit and concurrently sustain other life expenses.
Vote noted. Join our telegram group there, at least $10k income is surprisingly leading in our polls…
I’m in.. great channel Josh. A class above other young SG TH-camrs that haven’t quite earned their feather.
Get a 2nd hand car so it’s cheaper, of course stick with the bread and butter brands like Toyota.
I won't even consider altis. Overpriced
There are cheaper car available
What would be your pick?
@@joshconsultancy
Sorry just saw ur reply
Currently july 24, honda shuttle will be the most vfm car. Though i dont really like the design
Actually u can own a car in sg for few yrs or make a profit out of it. Similar to stock n shares, just buy at the right time
U said car A COE “$85,000 only”. This show that U r rich 😜
😜 anchoring biases at play
U need to earn $10000 to buy a car
$80 a day? Take Grab la
Yup thats why with hidden cost it is very expensive
5k buy 3rd hand
8k buy 2nd hand
10k buy 1st hand
Lol but 3 and 2 hand not much diff in price. Depreciation may be higher than brand new sometimes also
I have 20k+ and i still do an older car. Just buy those cars left with 2-3yrs COE (7-8yrs old cars) and once 10yrs is up, just change another. This way you can really save on the depreciation versus buying a new car (and you get to try out many cars, I've changed more than 30 cars since 2004 when i bought my first car, which was a Honda Accord, sometimes I even buy cars left the 6-7mths, just because the depreciation is so much cheaper)