I see many people intending to pay in full for their car purchases. In this way, they will save on interest for their car loan. Let's see what the total cost of owning a regular jap car (eg Altis) currently.
One time cost of car : $120k
Car road tax & insurance (with 50% NCD) : $2k x 10 = $20k
Gas: $300 pm x 12 x 10 = $36k
Maintenance (twice yearly) : $350 x 2 x 9 (first year maint free) = $6.3k
Car park : $100 x 12 x 10 = $12000 (free if staying in landed or condo)
ERP : $5x22x12 = $1320
Parf rebate on 10 years = $9000
Total outlay over 10 years = $120k - $9k + $20k + $36k + $6.3k + $12k + $1.32k = $186.6k
It will be $12k lower if staying in private property, ie $ $174.6k.
And this is at a time when the Altis is at the highest price. So when
COE price falls, the cost of car ownership will be more affordable. Like my current 4 yr+ Altis was only $60k brand new.
Compared to a household income of $150k - $200k pa ($1.5m - $2m over 10 years), the cost of car ownership is very affordable indeed. It is no surprise then that many mature families have 2 cars or more.
Quote:
Originally Posted by Unregistered
Do you still have loans for all your 3 properties? If you have, you are highly leveraged. What you should do is to sell away one of your condos and use whatever balance cash to clear the loans for the remaining two properties. You can also use any spare cash to pay in full a new car. If you cant afford, then better be prudent and take the bus. Don't depend on your salaries as you may lose your job any time. Your wife's annual income of $80k would not be enough for you as a family. Your job in the private sector is not guaranteed. Take care.
|