Personal Finance
Is A Car Affordable?
By Early Retirement SG  •  January 21, 2021
Everything is affordable. Always depends on the earning power right? The cost of owning a car in SG is around $1200 per month, plus minus. Pure expense. It's not like you get to keep the car and use it for long term. At $1200, it's relatively affordable. Until you look at income levels. Singapore's median income in 2019 was $4,563 – or roughly $3,331 per month after employer CPF contributions are taken into account. In 2018, this was $4,437 – or roughly $3,239 per month after employer CPF contributions. -https://dollarsandsense.sg/singapores-average-household-income-different-salaries-earn/ So... $1200 is almost 36% of take home pay after CPF. Or 26% of total pay. That's really A LOT. Imagine. You work 10 years, 2.5 years are for the car if you are single. Else, dual income, then maybe not so bad. For us in the US, we leased a car. So the monthly cost currently is less than US$700. Which is also pretty expensive. However, after the lease, we are given the option to buy...
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By Early Retirement SG
Male, born in 1982. Graduated with a degree majoring in Banking & Finance, Financial Adviser for a period of time resulting in in-depth knowledge of insurance products and marketing techniques of the industry ...
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