Steptronic Supercharged February 24, 2012 Share February 24, 2012 (edited) One of our members suggested that one should not buy a car worth more than 50% of annual household income. Most of us widely accepted it as a thumb rule for sound financial stability.To start with, my present car is much more than 50% of our household income.. . Those do not want to tell the %, just join the poll as it is confidential!You may do one SK and one pre-SK series cars.Just to give an example, if my car is 100k, and household income is 200k. then the percentage is 50% Edited January 22, 2015 by Ragingbull ↡ Advertisement Link to post Share on other sites More sharing options...
Eng40765 1st Gear February 24, 2012 Share February 24, 2012 One of our members suggested that one should not buy a car worth more than 50% of annual household income. Most of us widely accepted it as a thumb rule for sound financial stability. To start with, my present car is much more than 50% of our household income.. . Those do not want to tell the %, just join the poll as it is confidential! You may do one SK and one pre-SK series cars. One should not buy a house more than 50% of household income, let alone a depreciating car. 10% is my call. Max! Link to post Share on other sites More sharing options...
Odessus Clutched February 24, 2012 Share February 24, 2012 One should not buy a house more than 50% of household income, let alone a depreciating car. 10% is my call. Max! Let me guess. Chery QQ OPC for you? Heh... Link to post Share on other sites More sharing options...
Spring Moderator February 24, 2012 Share February 24, 2012 Wow this is tough bro!! To not buy a house of more than 50% houshold income is near impossible!! 4 rm HDB flat already more than S$300k, so how many households having S$600k ie $50k monthly income!! 4 Link to post Share on other sites More sharing options...
Curahee 1st Gear February 24, 2012 Share February 24, 2012 If i earn 100k per yr, i buy a 120k car but i only get a loan of 30k, 90k downpayment, like that consider ok? Link to post Share on other sites More sharing options...
Spidey10 Supercharged February 24, 2012 Share February 24, 2012 One should not buy a house more than 50% of household income, let alone a depreciating car. 10% is my call. Max! bro, 10%??? can't even pay for the COE leh??? no need to think already... Link to post Share on other sites More sharing options...
Vid Hypersonic February 24, 2012 Share February 24, 2012 One of our members suggested that one should not buy a car worth more than 50% of annual household income. Most of us widely accepted it as a thumb rule for sound financial stability. To start with, my present car is much more than 50% of our household income.. . Those do not want to tell the %, just join the poll as it is confidential! You may do one SK and one pre-SK series cars. Just to give an example, if my car is 100k, and household income is 200k. then the percentage is 50% That's a reasonable and realistic representation. If the loan is taken to at least 7 or even max 10 years, the repayment per year is much lower than your annual household income. For 10 years at maybe 2.5% interest, you have a debt of $125k. Servicing this loan per month is $1042 per month. If annual household income is $200k, then you have $16,667 per month. Using 6.25% of that to pay the loan is easy. 1 Link to post Share on other sites More sharing options...
Eng40765 1st Gear February 24, 2012 Share February 24, 2012 Let me guess. Chery QQ OPC for you? Heh... No I drive more than that. Not that I earn alot but mine is second hand and its pre SK Jap make. So cheaper then are lower than at present. And there are many such options out there in the 2nd hand market. If I buy a house, it doesnt depreciates much even if it does depreciates, so its worth the 50% household income because its an investment. I think Singapore average household income is about 10K per month. Even at a car price now of about SGD150k per car, monthly instalment over 10 years assuming zero downpayment should be only about SGD1300 per month, thats only 13% of income. No offence but those who pay 50% of income for their rides in the singapore COE system either has money dropping down or no committment - kids. Even at 13% income on car, thats a lost of 140K over 10 years when COE expires. You know can buy what with 140K? definitely not a car. Link to post Share on other sites More sharing options...
Detach8 5th Gear February 24, 2012 Share February 24, 2012 (edited) Eng40765, I think you get it wrong. It's not installments as % of household income. It's price of the actual car as % of annual income. E.g. To buy a VW Jetta $120K, u need to earn $20K/mth or $240K/yr. BTW what is SK!? Edited February 24, 2012 by Detach8 Link to post Share on other sites More sharing options...
Detach8 5th Gear February 24, 2012 Share February 24, 2012 BTW I think this poll is not accurate. Some people may not earn a lot monthly but have a cash excess that they don't intend to invest or do anything with it, hence they buy an expensive car. One simple example is strike toto. To me is it weighing your debt risks. If you buy something that has higher value that the amount you loan, you are safe. For a car this is easy because the govt will certainly return you your "paper value" which is essentially tax rebate unlike property although being an asset has a floating market value. So if you are capable of downpaying to an extent you only need to loan on the paper value of your ride and the resulting monthly payment doesn't kill you, then I think that's fair enough. Link to post Share on other sites More sharing options...
Eng40765 1st Gear February 24, 2012 Share February 24, 2012 Eng40765, I think you get it wrong. It's not installments as % of household income. It's price of the actual car as % of annual income. E.g. To buy a VW Jetta $120K, u need to earn $20K/mth or $240K/yr. BTW what is SK!? Sorry - I got it all wrong, ignore my postings! Link to post Share on other sites More sharing options...
Eng40765 1st Gear February 24, 2012 Share February 24, 2012 Eng40765, I think you get it wrong. It's not installments as % of household income. It's price of the actual car as % of annual income. E.g. To buy a VW Jetta $120K, u need to earn $20K/mth or $240K/yr. BTW what is SK!? SK refers to number plate, pre SK = low COE....... Link to post Share on other sites More sharing options...
Ossy77 Neutral Newbie February 24, 2012 Share February 24, 2012 One of our members suggested that one should not buy a car worth more than 50% of annual household income. Most of us widely accepted it as a thumb rule for sound financial stability. To start with, my present car is much more than 50% of our household income.. . Those do not want to tell the %, just join the poll as it is confidential! You may do one SK and one pre-SK series cars. Just to give an example, if my car is 100k, and household income is 200k. then the percentage is 50% Based on your signature of 523i and brand new 523i is $216k, TS is base on 50%, TS is earning $430k annually. Link to post Share on other sites More sharing options...
Cdior 1st Gear February 24, 2012 Share February 24, 2012 No I drive more than that. Not that I earn alot but mine is second hand and its pre SK Jap make. So cheaper then are lower than at present. And there are many such options out there in the 2nd hand market. If I buy a house, it doesnt depreciates much even if it does depreciates, so its worth the 50% household income because its an investment. I think Singapore average household income is about 10K per month. Even at a car price now of about SGD150k per car, monthly instalment over 10 years assuming zero downpayment should be only about SGD1300 per month, thats only 13% of income. No offence but those who pay 50% of income for their rides in the singapore COE system either has money dropping down or no committment - kids. Even at 13% income on car, thats a lost of 140K over 10 years when COE expires. You know can buy what with 140K? definitely not a car. The most important thing to me is car. The rest r not important. I can eat hawker every meal, skip annual tour, live in hdb instead of condo. Use all e cheapest stuff in e household. I cannot live without performance car. Link to post Share on other sites More sharing options...
Longg8 Clutched February 24, 2012 Share February 24, 2012 35%. PRE SK. you have to be earning at least 200k now to keep it 50%....a normal jap car cost 100k. Link to post Share on other sites More sharing options...
Old-driver 5th Gear February 24, 2012 Share February 24, 2012 Why calculate so much? Can afford buy, cannot afford BMW. Pump price up worry. COE up scared. ERP increase comprain. Link to post Share on other sites More sharing options...
Mustank Hypersonic February 24, 2012 Share February 24, 2012 I see the coe i really appreaciate my pigkarp. Die die must maintain it!!!!! Link to post Share on other sites More sharing options...
Steptronic Supercharged February 24, 2012 Author Share February 24, 2012 If i earn 100k per yr, i buy a 120k car but i only get a loan of 30k, 90k downpayment, like that consider ok? It is just to consider Car vs income. So, in this case, 120%! ↡ Advertisement Link to post Share on other sites More sharing options...
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