For the past 30 months blogging on this site, I haven’t really talked about cars. Since I am supposed to be “A Frugal One” and given the cost of owning a car in Singapore, you would have expected me (especially in my earlier days) to bash silly car buyers in Singapore.
But well, I haven’t.
Because I know that I desire the experience of owning a car (at least once) in my lifetime.
Hopefully, this doesn’t happen 10 years down the road…
And yes, I am writing about this car conundrum as I am contemplating buying one in the very near future.
Why We Don’t Need One
- Most of the time, I either work from home or walk to my students’ place for lessons.
- It is extremely costly to own a car in Singapore. Relying on public transport and the occasional taxi should only set a couple back by at most $500 a month. However, driving a new but no-frills car for 10 years could easily cost up to $250,000! That could be $200,000 saved over 10 years!
- We seldom have late nights out and the car could be spent idling in the carpark, a big waste of our money.
- There are opportunity costs to the money. Buying a car might result in us delaying financial freedom for a decade.
Why I Am Thinking Of Buying A Car
Having grown up in a household which was never anywhere near owning a car and having driven a max of 10 times since getting my driving license eight years ago, I admit that I know nuts about engines, torque or throttle. But I do know that we are approaching the best time to buy a car in the past 5 years.
Simply put, COE prices are trending down. Yours truly would probably not bite now, but it’s much harder to resist if COE for CAT A goes down below $25,000 (I am not so greedy as to be expecting <$10K).
My main reason for buying a car?
If we are going to have a kid soon, the convenience could come in very handy for the Mrs and if we are not having one, we could easily afford a car.
Just to let you know, the Mrs is not really in favour of owning one.
Questions That I Have
I am no expert in this area so I do have alot of questions with regards to owning a car.
- Using this article as a gauge, It appears that the 50% downpayment ruling has caused demand for 2nd hand cars to spike. Thus, is it true that there is actually no value in buying a 2nd hand car? Is the depreciation of new cars mostly lower than 2nd hand cars right now?
- For someone buying a new car for the first time, is it a folly to be buying from a Parallel Importer instead of an Authorised Distributor?
- Would it really be much cheaper to lease when one “needs” the car, even when prevailing COE is high?
Would appreciate views and opinions on this issue!