$30K car too expensive for US households with median income

[Nostalgia]

Only median income households in 25 largest US cities can afford a new car.

 

http://www.autoblog.com/2013/03/03/househo...rage-new-car-p/

 

To quote

"The rule states that a buyer should be able to offer a down payment of at least 20 percent, incur financing for no more than four years and endure a principal, interest and insurance totaling up to no more than 10 percent of household income. "

 

Where does applying that rule on Singaporean households put us?

[Thaiyotakamli]

why nobody show the world how expensive our cars and how the price movement greater than apple stock?

[Kiadaw]

In different places, different standards applies. Everything becomes affordable when you space out the time to pay. Because living & cars are so expensive, people do not think much about paying thousands of dollars for a new handbag, SLR etc.

 

In some other places, you will get a big scolding if you buy your gf or wife a new LV, for wasting money, unless you are really rich.

[Trex101]

Only median income households in 25 largest US cities can afford a new car.

 

http://www.autoblog.com/2013/03/03/househo...rage-new-car-p/

 

To quote

"The rule states that a buyer should be able to offer a down payment of at least 20 percent, incur financing for no more than four years and endure a principal, interest and insurance totaling up to no more than 10 percent of household income. "

 

Where does applying that rule on Singaporean households put us?

 

It's all relative to where you are, in Spore if COE drop to 20k ppl will say it's so cheap but over in Aussie, you can buy a brand new small car for A$13k and no one here shout that it's cheap.

 

http://theage.drive.com.au/new-car-compari...0301-2f9qq.html

[Kspchew]

Factor in personal oz tax? Still cheaper?

[Trex101]

Factor in personal oz tax? Still cheaper?

 

If you factor in free healthcare, no 10yr COE lease, no ERP.... yah of course it is cheaper. A$13k is drive away price, it's your forever.

 

And what does personal tax get to do with car price here?

Edited March 3, 2013 by Trex101

[Katz2282]

If you factor in free healthcare, no 10yr COE lease, no ERP.... yah of course it is cheaper. A$13k is drive away price, it's your forever.

 

And what does personal tax get to do with car price here?

 

There's toll which can be more pricey than ERP, but still much much cheaper overall.

 

Yeah, what's tax got to do with it? Taxes are not higher than the MSM in Sg makes it out to be or govt wants you to believe, best part is you can claim quite a large tax return depending on your circumstance.

[Wt_know]

a toyota altis in singapore $140K-ish can buy a porsche carrera in usa liao la ... no point to compare

 

location and density make the final call ... just like usa so big ... USD$200K can get a big house with garage and what-have-you

but USD$200K in New York City get you an apartment that smaller than pigeon hole

Edited March 4, 2013 by Wt_know

[Solar]

If you factor in free healthcare, no 10yr COE lease, no ERP.... yah of course it is cheaper. A$13k is drive away price, it's your forever.

 

And what does personal tax get to do with car price here?

 

i believe he's referring to indirect tax + direct tax, overall tax paying the gahmen.

but yes, in the long-term, australia is cheaper with the welfare provided to the people.

one heart bypass is enough to wipe off your entire savings.

 

one of my engineer's uncle in australia did a bypass many years back. foc.

depending on severity, you get to 'cut queue'.

 

[Chucky2007]

Car is yours forever but maintenance can be quite expensive, especially labour. High labour costs are one of the biggest drivers for DIY everything. In SG, people are still very used to going to workshops for any basic fixes, or going to a contractor for any basic home fixes. If they tell you just taking a look at your fuse box cost you $50-80 (doesn't include any fixes yet), people's mindset will start to change.

My younger brother bought a accord for A$2k (18year old car) in 1998 while studying in Australia. He spent A$1k+ repairing the car. And drive the car for 3 years and sold it off at 1.5k when e left Australia. Still cheaper than paying 15k for a similar car in SG and spending $500 cheaper labour cost in SG. Some expat made a calculation that in SG, personal income tax is low that's true, but factor in car ownership, then its as high, or if not higher than overseas.

[Solar]

My younger brother bought a accord for A$2k (18year old car) in 1998 while studying in Australia. He spent A$1k+ repairing the car. And drive the car for 3 years and sold it off at 1.5k when e left Australia. Still cheaper than paying 15k for a similar car in SG and spending $500 cheaper labour cost in SG. Some expat made a calculation that in SG, personal income tax is low that's true, but factor in car ownership, then its as high, or if not higher than overseas.

 

i sold a mazda for A$500 then, also around the same time

okay, to be fair.. sibeh lok kok, tyres botak, aircon only blow air.. not cold and no heater

[Blueblack]

Our experience is service the car there cost like buying another car

Here I change timing belt and some plus plus cost me S$1K, there just the labour cost me 4K.

[Kangadrool]

My younger brother bought a accord for A$2k (18year old car) in 1998 while studying in Australia. He spent A$1k+ repairing the car. And drive the car for 3 years and sold it off at 1.5k when e left Australia. Still cheaper than paying 15k for a similar car in SG and spending $500 cheaper labour cost in SG. Some expat made a calculation that in SG, personal income tax is low that's true, but factor in car ownership, then its as high, or if not higher than overseas.

 

Don't need factor in car ownership, it's already higher than them. Our CPF is like social security albielt you only "get what you sow" versus Ang Moh countries which is in one big common pool for all for dig.

[Pisces69]

why nobody show the world how expensive our cars and how the price movement greater than apple stock?

 

 

Oh when those foreigners come here n wan to buy car....then ty get a nice shock.

 

Some cant believe our cars cost so much. When i used to tell them e prices i get a good laugh when i see their faces. Sometimes ty think i dun understand what ty asking. Hahaha.

 

Some ask fr new bmw end up get toyota starlet. Hahaha.

[Kangadrool]

Oh when those foreigners come here n wan to buy car....then ty get a nice shock.

 

Some cant believe our cars cost so much. When i used to tell them e prices i get a good laugh when i see their faces. Sometimes ty think i dun understand what ty asking. Hahaha.

 

Some ask fr new bmw end up get toyota starlet. Hahaha.

 

Not only that, had a CFO level Ang Moh come here, wanna buy car, he commented "sibei complicated".

 

I think he will be more shocked if he managed to figure out the profit margin is at least 20K for a 2L car versus 2K in his home town.

Edited March 4, 2013 by Kangadrool

[Pisces69]

Don't need factor in car ownership, it's already higher than them. Our CPF is like social security albielt you only "get what you sow" versus Ang Moh countries which is in one big common pool for all for dig.

 

Our cpf u dun even get what u sow.

 

After gharmen deduct/hold back abt $200k fr medisave...special account n minimum sum u only get back a small fraction of what u put in all those years.

 

Its like we give gharmen to make more money n ty keep profits fr themselves. Legalised robbery.

[Kangadrool]

Our cpf u dun even get what u sow.

 

After gharmen deduct/hold back abt $200k fr medisave...special account n minimum sum u only get back a small fraction of what u put in all those years.

 

Its like we give gharmen to make more money n ty keep profits fr themselves. Legalised robbery.

 

Ya, I know. It's just "accounting, recording on books" against your NRIC number.

[Pisces69]

Not only that, had a CFO level Ang Moh come here, wanna buy car, he commented "sibei complicated".

 

I think he will be more shocked if he managed to figure out the profit margin is at least 20K for a 2L car versus 2K in his home town.

 

 

Ya ty always confused by our "system".

 

The most complicated is why a 10 year old car (COE car) cost so much more than a 9 year old car. Hahaha.

 

Some tell me buying car here more complicated than Rocket Science. Hahaha.