how much?

blowfish SG

hi pals, just doing a survey, you think a person earning $1.7k per/m can afford to pay $800 p/m instalment for cars?

am thinking whether to buy a car as it really convenience. but i afraid not enough.
so pal out there with cars, can tell me how much is enough?
i know it depends on individuals but just like to know.

best appreciated if ppl can stated how much u earned and instalment cost.

Praetorian111 SG

1.7K basic pay? I assume it is.... so 1.5K

normal sukuki swift, toyota starlet.... nissan pressa or a normal reduced COE car will fit best into ur buget... if not get a new 1L or 1.3 L car..... shld be able to.... of course the fuel wise.... mhhhhh 3 -4 days $40 shld be enuff.... from work to home.... Smile go and test drive cars first... but dun commit urself..... ask the dealers abt the loan rates and maybe work out the amount urself....

Si|verGa| SG

erm dat many cars where u pay only ard 500 to 600 per mth mah.. buy hose coe car or wad lor.. anyway u say it 4 transport nt 4 outlook or racing rite? hmmm

kohanson SG

Is it 1.7k/month gross or after CPF cut.. If you are to pay 800 p/m, you still have to think of Fuel, insurance, road tax, parking, ERP.. Fuel alone can cost you 200 dollars per month. For insurance, it will have to depend on how old you are and how long you have driven.. and parking maybe at least 100 per month..

tiggersgd SG

why not think about 2nd hand cars or cars lower than 600 p/m? if you buy first hand, you'll definitely lose quite a lot if you cannot afford anymore (due to other commitments etc)...also, take this time to see if having a car really suits your lifestyle and expenses...it is not cheap to have a car but definitely worth every cent you pay for your own transport.

don;t hurry....consider and work out your sums first. Wink

kean1010 SG

comfirm can own a car with $1.7k/mth.
but the problem now lies in which how much u left with.

eg. $1.7k-pay $500-installment $200-petrol $100-parking
u left with $900 to spend.
but not forgetting u need to eat, other bills and entertament fees.

and road tax, insurance every year.

but if $1.7k is what a single guy is earning, he sure can support a car. but if let say u have a family to support i would rather u take BMW-buses, Mrt and walking

bmw_lover SG

don’t buy it… i once heard that you should only spend 1/3 of your pay on a car… this is to cover for any emergency that might happen during the ownership of your car… touch wood if smth happen and u have to sell ur car your financial status would not be affected so much.

wuming78 SG

where did u hear tt from? and isit 1/3 of gross or take home?

y720 SG

take home...becos that's the money u can use wat.

bmw_lover SG

yep 1/3 of the take home pay….

choppers SG

i think your bank loan cannot be approved as well.. think your loan amt cannot exceed 1/3 of your basic salary….

hotxyz2002 SG

I think if you need a car purely for transportation purposes, then I would suggest you go for a second hand, 1.0cc car. You don’t have to go for those new, expensive cars. As already mentioned here in this thread, you would still have to allocate for insurance fees, road tax, season parking fees, maintenance and petrol. Do consider all these factors before you sign on any agreement to purchase a car. The deals advertised nowadays definitley look ‘affordable’ but you reallly have do do your sums to ensure you don’t find yourself in a sorry financial state later on.

flash9933 SG

One of my friend who is working as new car agent also told me that the bank will generally loan up to 1/3 of your gross salary.

You will be scan in the central bureau at the MAS on whether you got any bad debts. Heard from him that if you got bad debts or court case, the chances are slim. As such, you have to pay more d/p.

If you calculated loan amount of installment is less than $650 per month, chances is you will be approved of your loan.

wuming78 SG

u mean the loan repayment amount per mth shouldnt be more than 1/3 of the mthly take home?

ok.. tts not so bad.

flash9933 SG

The "1/3 of gross salary" is commonly use by the banks as a gauge, not a mandatory rule like in application of credit card. Some bank will also give higher loan and it all depend on your financial status. In the central bureau, the banks will know your financial status. It is at their risk to loan you an amount that is more than you can cope, which is unlike finance company which can give you high loan at higher interest and some required guarrantor.