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How much would you loan if you earned 8k a month?

Vega

By Vega,
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Vega

Vega

Turbocharged

there is a current discussion of What car would you buy if you earned 8k a month?

 

but i would like to tweak it to how much would you loan for a car give the same example of a family man, early 30s, stays in a HDB, one kid, wife still works, but I guess he still has a smallish loan outstanding on his HDB.

 

please share your input.

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Vega

Vega

Turbocharged
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& how much would the car cost?if buy a picanto maybe no need loan at all.

 

it doesnt matter how much the car cost. this discussion is more about once you determine what should be the max loan one can take up with this income, he/she can zero in which car to get at that loan package. eg, if the max loan is 20% of his take home pay, $1420 per month can get him mostly a 1.6L Jap car. if the % is higher, most likely a 2.0L Conti car. so the question is, at $8K per month, what is the loan he should be taking without overstreching.

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Rickster

Rickster

5th Gear

there is a current discussion of What car would you buy if you earned 8k a month?

 

but i would like to tweak it to how much would you loan for a car give the same example of a family man, early 30s, stays in a HDB, one kid, wife still works, but I guess he still has a smallish loan outstanding on his HDB.

 

please share your input.

 

 

I would loan 100% [thumbsup] [thumbsup] [thumbsup] [thumbsup]

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Peaceracer

Peaceracer

1st Gear

I wouldnt wanna take loan is possible. Or if i take, it would be minimal.

 

Good times may not last long and when it finally comes to an end, there's no income but the the heavy car loan will still be sucking you dry. Thn, no choice gotta sell car, prob at a loss.

 

If i got not enough $$, i would jus wait till i hav b4 i get e car.

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Jerms

Jerms

Clutched

wah.. this place becoming like EDMW isit? might as well create how much do you save if you earn 8k, how much you spend if you earn 8k, how much you drink if you earn 8k so on.....

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Adrianli

Adrianli

Hypersonic

Lets see,

 

100% loan with 4% interest rate.

 

$8000 x 12mths = $96,000

 

$96,000 x 10yrs = $960,000

 

$960,000 x 0.96 = $921,600

 

 

That means he can afford any car price within the range of $0 - $921,600. Time to go have a look at Ferraris and Lambo!!! [thumbsup]

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Billcoke

Billcoke

2nd Gear

there is a current discussion of What car would you buy if you earned 8k a month?

 

but i would like to tweak it to how much would you loan for a car give the same example of a family man, early 30s, stays in a HDB, one kid, wife still works, but I guess he still has a smallish loan outstanding on his HDB.

 

please share your input.

 

I think your question is, for someone with $8K monthly salary, is it better to pay the car full in cash, or take up a car loan?

 

But going back to your question on how much loan to apply, that would depends on many factors.

 

1. Where are all his spare cash? lock up in other investments?

2. If he is into investment, can his portfolio out do his car loan interest rate?

 

Some people can be cash rich, but yet take up a small loan for a purpose.

 

 

 

 

 

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Gearoil

Gearoil

1st Gear

there is a current discussion of What car would you buy if you earned 8k a month?

 

but i would like to tweak it to how much would you loan for a car give the same example of a family man, early 30s, stays in a HDB, one kid, wife still works, but I guess he still has a smallish loan outstanding on his HDB.

 

please share your input.

 

Usually ppl learnt from others.

 

An egoistic person first put up a post demostrating that he has the means to employ someone at a salary of $8k per month.

 

Now you used that as a base and ask another pointless question.

 

Gotta loan ...means CAN"T AFFORD IT....CAN'T AFFORD IT..... MEANS BETTER DON'T BUY! :D

 

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Yeshe

Yeshe

Turbocharged

Lets see,

 

100% loan with 4% interest rate.

 

$8000 x 12mths = $96,000

 

$96,000 x 10yrs = $960,000

 

$960,000 x 0.96 = $921,600

 

 

That means he can afford any car price within the range of $0 - $921,600. Time to go have a look at Ferraris and Lambo!!! [thumbsup]

 

wrong, 4% per annum, so 10 yrs will be 40%.

lastly, no need to eat pay income tax insurance road tax petrol fines parking quickie ? [lipsrsealed][sly]

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Throttle2

Throttle2

Supersonic
(edited)

wah.. this place becoming like EDMW isit? might as well create how much do you save if you earn 8k, how much you spend if you earn 8k, how much you drink if you earn 8k so on.....

 

 

why are we so stuck on $8k per month.....quite miserable leh.....

 

at least $18k per month , then can talk more...

 

oops i only $2.8k per month better shut up.

Edited by Throttle2
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Adrianli

Adrianli

Hypersonic

wrong, 4% per annum, so 10 yrs will be 40%.

lastly, no need to eat pay income tax insurance road tax petrol fines parking quickie ? [lipsrsealed][sly]

 

Oops, sorry, never did tis type of calculation b4.

 

Re-calculate

 

$960,000 x 0.6 = $576,000

 

 

So he can afford $0 - $576,000 car. Every other expenses will be from wife income. [thumbsup]

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Arowana1

Arowana1

1st Gear

there is a current discussion of What car would you buy if you earned 8k a month?

 

but i would like to tweak it to how much would you loan for a car give the same example of a family man, early 30s, stays in a HDB, one kid, wife still works, but I guess he still has a smallish loan outstanding on his HDB.

 

please share your input.

 

actually, this kind of discussion never ending one. there are a lot of factors involved so there will always be differences in views. unless u fix a scenario, then ask yes or no.

 

e.g. 8k /mth salary

potential variables

-is car the only luxury? or there are other indulgences?

-smoking?

-drinking?

-ktv?

-holidays?

-hawker or restaurant type?

-support parents?

-child enrichment?

-on medication or long term medical condition?

-mamak or saloon for haircut?

-self investment or keep under pillow type?

-drive a lot?

a dollar here, a dollar there adds up to the car affordability, the money in hand, the money saved, etc... all that can influence the amount of loan to take

 

juz like me, cannot afford a car one. but i eat bread everyday, go visit parents in malaysia as holiday. money saved is used to pay for car [drivingcar] even then, not enuf so take 100% loan over 10 years [sweatdrop]

 

ok, not everything above is true, juz nothing to do in the office, feel like posting

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Longg8

Longg8

Clutched

why are we so stuck on $8k per month.....quite miserable leh.....

 

at least $18k per month , then can talk more...

 

oops i only $2.8k per month better shut up.

 

8k is alot lei......haiz..low income earners like me...appreciate every single extra dollar that i earn....

 

what to do? life in sg is tough..esp for ppl like me =(

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