Family income below $7,650? You can't afford a car

[MarrickG]

If you're thinking of buying a car but your combined family income is below $7,650, think again.

According to a local website salary.sg run by a finance manager, $7,650 is the minimum income needed to afford a car.

Most families are not able to afford cars because the cost of car ownership does not only include the price but also the miscellaneous fees such as road taxes, car insurance and servicing, said the website.

A small saloon will cost around $50,000. The more aspirational may go for a family MPV, which can go up to $80,000 or more.

According to the Singapore Department of Statistics, 38 per cent of the households here own a car. The top 38 per cent highest-earning households also make more than $7,650 a month.

Salary.sg said that the 38 per cent of the households which own a car may not be the same 38 per cent that form the highest-earning households in Singapore.

But it went on to explain that this group of highest-earning households are most capable of owning a car and therefore, it stands to reason that $7,650 is a reasonable guideline for car ownership.

Mr Wu, the person behind the site, told Chinese daily Shin Min that a family should retain 50 per cent of their income as miscellaneous expenses, education fees etc.

The other 30 per cent would be taken up by a housing loan.

Then, car expenses should not total to more than 20 per cent, he said.

BAR TOO HIGH?

But is the bar of $7,650 too high?

The director of a parallel importer company apparently thinks so.

He told Shin Min that $7,650 should be the minimum combined income to buy a Continental car like Mercedes-Benz or BMW.

But with regards to cheaper cars, monthly expenses should not total more than $1,000.

"If the person has a minimum income of $2,000, he can consider buying a car," said the director.

And if the cheaper alternative is still too expensive, then the person should consider a second-hand car, added the director.

http://www.asiaone.com/Motoring/Owners/Buying+Guide/Story/A1Story20091214-185860.html

 

[singveld]

rip off singapore.

 

[SotongMee]

This article is right got $7,650 combined family income should not think of owning a car in Sinkie land.

On the postive end can psycho yourself to be positively motivated to drive a merz benc so can work hard hard to earn more than $7,650 a month.

rip off singapore.

 

[scroobal]

Circa 2002, MAS made the biggest mistake by deregulating car financing. There are many families that are paying the price for it. A few years later, DBS, a GLC initiated the cash rebate car finacing scheme which placed many people in debt. Elderly parents/ retirees had to sell their own asset to rescue their adult children from these debts.

 

[hockbeng]

Circa 2002, MAS made the biggest mistake by deregulating car financing. There are many families that are paying the price for it. A few years later, DBS, a GLC initiated the cash rebate car finacing scheme which placed many people in debt. Elderly parents/ retirees had to sell their own asset to rescue their adult children from these debts.

It is the banks who lobbied for easy financing.

That way can increase the debt pie.

They borrowed cheap money and loaned it to the masses to buy cars -> earn more interest income --> higher bonuses --> higher bankers pay --> higher ministers pay.

 

[Cestbon]

Circa 2002, MAS made the biggest mistake by deregulating car financing. There are many families that are paying the price for it. A few years later, DBS, a GLC initiated the cash rebate car finacing scheme which placed many people in debt. Elderly parents/ retirees had to sell their own asset to rescue their adult children from these debts.

Nothing wrong with the deregulating finance. Blame it on consumer who cannot afford want to buy car. Actually I quite happy to see them suffer be cow/horse for their car. Stupid parents to bail their children from car debt.

 

[drifter]

This article is gonna to cause car mart business drop ..lol .

 

[kulgai]

At $7,650 combined income, don't even think abt having a car. It's barely enough to get by. That parallel importer is talking thru his arsehole when he said a car can be considered if income is $2k

 

[soIsee]

Circa 2002, MAS made the biggest mistake by deregulating car financing. There are many families that are paying the price for it. A few years later, DBS, a GLC initiated the cash rebate car finacing scheme which placed many people in debt. Elderly parents/ retirees had to sell their own asset to rescue their adult children from these debts.

Why should MAS or the gov spoon feed the Sinkie, on what they can or cannor spend?

What is there to regulate, on who should not should not buy a car?

ANYONE WANT TO DIE, IS THEIR OWN BUSINESS , RIGHT?

 

[SIFU]

At $7,650 combined income, don't even think abt having a car. It's barely enough to get by. That parallel importer is talking thru his arsehole when he said a car can be considered if income is $2k

that same asshole also say earn $7650 can consider buying merz or bmw...

 

[soIsee]

that same asshole also say earn $7650 can consider buying merz or bmw...

The same asshole might to right indirectly, becos he declared legally that he earned $7650/mth and he jolly well can own a BIG BEEMER but he didn't say that he also earned another $7650/mth but for that, he didn't legally decalre that!

 

[SIFU]

The same asshole might to right indirectly, becos he declared legally that he earned $7650/mth and he jolly well can own a BIG BEEMER but he didn't say that he also earned another $7650/mth but for that, he didn't legally decalre that!

waiting for some thai/jap loser to come in and say cars in thailand/japan very very cheap and every household can easily afford 2 to 3 cars...

 

[tonychat]

To earn some level of money in order to own a car is a joke. I have a US friend who just bought a car and happily vroom her way...

and she is still a student.. Who says you need to earn some level of money to own a car, oh yes,, only in sinkieland. WAHAHAHHAHA... suckers...

 

[SIFU]

CB kia tonychat lai liao... u r so damn predictable...

thailand best lah.. i am sure every family have 2 to 3 cars.. yes ?? no??

u no need earn $$ to buy car becos u depend on the hard-earn $$ that your prostitute ladyboy wife bring in to buy 1 for u.. LOL..

 

[HellAngel]

So based on the article, most HDB dwellers should not be driving a car as the cap for HDB application is household income of $8000.

 

[Perspective]

Nearly 40% has family income of $7600? I think some calculations have to be wrong somewhere.

 

[scroobal]

Agree with you. The figures struck me as odd.

Nearly 40% has family income of $7600? I think some calculations have to be wrong somewhere.