A car isn't for everyone - especially in Singapore. While that statement may piss you off a little bit, that's just the way the system is rigged. The hideously inflated cost of owning a car is meant to discourage the vast majority of Singaporeans from owning a car.
Why? Well, officially prices are at crazy levels to prevent Singapore's roads from becoming too overly congested (and to get you to take public transport).
You buy the car with a 30 percent downpayment and take out a five-year car loan. End of story? No my friend - that's not even the true cost of a car.
But take note, your cost of ownership will be even more expensive than that!
Why? Because this costing doesn't even include any future increase in COE, road tax, fluctuations in fuel cost, fines, accidents, rising maintenance costs and ERP/parking rate hikes!
Here is a breakdown of the various costs involved:
| Item | Initial Cost | Annual Cost | 10 Years |
| Downpayment (with 70% loan) | $30,600 | N/A | $30,600 |
| Monthly loan repayment | $1,355 | $16,260 | $81,300 |
| Road Tax | First car paid by dealer | $742 | $6,678 |
| Comprehensive motor insurance | N/A | $1,760 (average cost) | $11,440 |
| Petrol (98 Octane) | $120 per tank | $2,880 | $28,800 |
| Maintenance | N/A | $1,280 (average cost) | $12,800 |
| Parking (Home, Work at industrial park) | $220 | $2,640 | $26,400 |
| Total | $178,648 |
Buying a car is a huge decision that can have a major impact on your financial situation. Think about the total cost of a car and picture that money in an investment portfolio with eight percent returns each year.
Unless you absolutely NEED a car and you have a job that can support the expense, it's really much better to put that money aside to grow your retirement funds.
Do you think a car is worth that much of your money?
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*This article was updated on 28th March 2018.
