Buying car on $45K inheritance

[Darryn]

For a lot of people, $45k in a lump sum is pretty hard to come by.

 

It is enough to put into a good balanced basket of shares to put it to work for you. One of the biggest problems the "middle class" have is that they often don't have these sorts of lump sums to put to work for them to start earning "passive" income.

 

Given this, my advice would be to put the money into the market - with a good balanced fund or similar.

 

As to "enough for a deposit" - it says a lot that you are not even mentioning the monthly payments.

 

Ok - so can scrape together the $60k for a new car - now the inheritance is gone, quite likely that your monthly payments have gone up - then where will you be 1 year later? The answer is - exactly where you were before you got the inheritance.

 

If you put it into a (relatively) safe money making avenue - 1 year later you will still have the $45k PLUS whatever it has made in the meantime. IN addition - you will have the security of knowing that you know have a "backstop" should you wish to pursue other opportunities - which might mean starting your own business, or allowing your wife to try that new job.

 

Also - it might allow you to pursue additional studies - maybe get a masters degree, or if you haven't already got one - can study for your first degree, bumping your earning potential.

 

 

[Mz3SP0907]

Well said! Bro...

 

For an average wage earner... to save $45K can be quite a challenge... to spend in one go is quite a heartache too...

 

the word really is.... sustainability... in all aspects, unless one is filthy rich...

 

 

  On 12/8/2014 at 5:11 AM, Darryn said:

For a lot of people, $45k in a lump sum is pretty hard to come by.

 

It is enough to put into a good balanced basket of shares to put it to work for you. One of the biggest problems the "middle class" have is that they often don't have these sorts of lump sums to put to work for them to start earning "passive" income.

 

Given this, my advice would be to put the money into the market - with a good balanced fund or similar.

 

As to "enough for a deposit" - it says a lot that you are not even mentioning the monthly payments.

 

Ok - so can scrape together the $60k for a new car - now the inheritance is gone, quite likely that your monthly payments have gone up - then where will you be 1 year later? The answer is - exactly where you were before you got the inheritance.

 

If you put it into a (relatively) safe money making avenue - 1 year later you will still have the $45k PLUS whatever it has made in the meantime. IN addition - you will have the security of knowing that you know have a "backstop" should you wish to pursue other opportunities - which might mean starting your own business, or allowing your wife to try that new job.

 

Also - it might allow you to pursue additional studies - maybe get a masters degree, or if you haven't already got one - can study for your first degree, bumping your earning potential.

 

 

 

[Gildor8]

Hi,

 

Just my opinion....Since you already got a car, it is better to use the current car until 10 years. A stream is a good car to drive and $45k will not get you any much better car but only newer.

 

Also, the timing is not right now as nearer to CNY , it is always going to be higher COE. last but not least, might as well use it to spend on your family, it might just bring your family closer together.

  On 12/7/2014 at 10:28 PM, Obscurest said:

Hi folks,

I need some advice here and I'm not sure does it really helps in my decision making but still wana give a shot and try.

For some reason I inherited a sum of 45k. Tat makes me very excited and first thing that came into my mind is to change to a brand new car. Logically I shld not as I am not rich and this $$ though not a lot but will comes in handy and one day might save my arse if my housing repayment fail if for some reason if me or my wife loses our job. I mean anything can happen. But becos my believe is that if a person got too much to worry about or think about he will never enjoy life as there are too much restrictions in life for life is so short.

1) Shld I just dump all of this 45k on a brand new car and enjoy the luxury of owning a brand new car or shld I restrict myself and keep it for raining days?

2) my thinking was that becos of the ruling, we are force to pay 50% and a 5 to 6 yrs loan, tat means if I reAlly need cash badly, if I sold away the car, I shld lose 50% of my down payment (at least) I won't ended up owe the bank money right?

3) is it the right time to get a car now cos a lot of them days wait till CNY.

A little background info of me:
Currently driving a stream and if I sold away my car I can take back approx 20k so add on to my current 45k is enough for the new ride.

Appreciate your advice on this

Thks

 

[Hydrocarbon]

  On 12/8/2014 at 4:44 AM, Eviilusion said:

there are rich peasants and poor peasants and also smart peasants and stupid peasants. I fall under the stupid and poor peasant.......sad sia!

 

I'm with you.... But I consider myself broke instead of poor..

[Enye]

i pick up 10cts from the ground also get excited so does it mean that i am a bankrupt?

 

and also please don't talk like investments in funds/stocks etc is guaranteed make money

 

i know more people who lost in stocks than people who made money

 

 

 

[Mz3SP0907]

me too... dead broke...

  On 12/8/2014 at 5:52 AM, Hydrocarbon said:

 

I'm with you.... But I consider myself broke instead of poor..

 

I'm one of them... lost money also... unit trust also lost... siow liao

 

so now...never touch teh above liao...

 

CA$H is KING...

  On 12/8/2014 at 6:12 AM, Enye said:

i pick up 10cts from the ground also get excited so does it mean that i am a bankrupt?

 

and also please don't talk like investments in funds/stocks etc is guaranteed make money

 

i know more people who lost in stocks than people who made money

 

 

 

 

[Solar]

while you are thinking or don't know where to use it on...and afraid it'll go up in smoke... put it in a sgd deposit (not those 'structured deposit). the rates are getting a bit better nowadays. http://www.moneylobang.com/best-deposit-rates.php

45k is about just nice 'protected' by the SDIC imposed by MAS (up to 50k actually) should sh!t hits the fan.

 

if you want, roll the interest you earned back into the initial deposit.. after some time you'll find yourself having much more than the initial 45k you put in there.

 

[Credor]

TS... If that $45k is your hard earned sweat $..... Would u still use it to change a car?

After all, $ is yours.... You call the shot.

Anyway, most bro here have already advise u to put $ to a better usage. :)

[Sp4wn]

  On 12/8/2014 at 6:21 AM, Mz3SP0907 said:

me too... dead broke...

 

I'm one of them... lost money also... unit trust also lost... siow liao

 

so now...never touch teh above liao...

 

CA$H is KING...

 

 

same la. lost $ before, the then-gf scold me like siao.

 

till today, no more interest. i tried to log into my brokerage account a few weeks ago just to see if got anything left behind that i forgot ... but my account was disabled haha ...

[Jamesc]

  On 12/8/2014 at 4:00 AM, Hydrocarbon said:

 

Buy car.. Who cares if got enough money to eat next year? Car more important! One of my associates, leased a car at 1.6 or 1.7k a month, then lost job, still got money travel to Europe and buy branded stuff for his GF... Credit Card solves all problems! Huat ah!!

 

If no more money, just hope another windfall of 45K comes along to help you out..

 

 

TS just has to work how how many relatives he has and how much they can leave him.

 

As long as he doesn't help speed up the process its ok.

 

[Fastfive1]

Dude just buy a new car. YOLO right?

 

Nah I kid. Please plan your expenses carefully

[Ake109]

  On 12/7/2014 at 10:28 PM, Obscurest said:

Hi folks,

 

I need some advice here and I'm not sure does it really helps in my decision making but still wana give a shot and try.

 

For some reason I inherited a sum of 45k. Tat makes me very excited and first thing that came into my mind is to change to a brand new car. Logically I shld not as I am not rich and this $$ though not a lot but will comes in handy and one day might save my arse if my housing repayment fail if for some reason if me or my wife loses our job. I mean anything can happen. But becos my believe is that if a person got too much to worry about or think about he will never enjoy life as there are too much restrictions in life for life is so short.

 

1) Shld I just dump all of this 45k on a brand new car and enjoy the luxury of owning a brand new car or shld I restrict myself and keep it for raining days?

 

2) my thinking was that becos of the ruling, we are force to pay 50% and a 5 to 6 yrs loan, tat means if I reAlly need cash badly, if I sold away the car, I shld lose 50% of my down payment (at least) I won't ended up owe the bank money right?

 

3) is it the right time to get a car now cos a lot of them days wait till CNY.

 

A little background info of me:

Currently driving a stream and if I sold away my car I can take back approx 20k so add on to my current 45k is enough for the new ride.

 

Appreciate your advice on this

 

Thks

 

Wah so many replies so fast! This topic really gets people's attention.

 

I would say, don't buy the new car. 45k + 20k = 65k. Unless you want top up, 130k will get you a basic car, which your Stream already is. So you get a newer car, but since you say you can get back 20k, it means your Stream is fully paid up?

 

Save the money and invest in some good dividend paying stocks like REITs and when your stream finally run out of COE, then you buy a new car not too late. I mean, 3 yrs later (assuming Stream COE expire then), you can be :

 

1.) Driving a 3 yr old car

2.) Driving a new car

[Hydrocarbon]

  On 12/8/2014 at 7:04 AM, Jamesc said:

TS just has to work how how many relatives he has and how much they can leave him.

 

As long as he doesn't help speed up the process its ok.

 

 

For some, should speed up the process I think.. (Not talking about TS family / relatives).. Haha.. I think on the whole..

 

[Luckydrawcar]

You have mentioned it urself can keep for rainy days.

 

Again if this sum of $45k is only s small proportion of your overall savings then i would say yes go ahead n pamper urself if u will be happy.

 

But if u dnt have much savings to begin with then please continue driving ur stream n instead save the $ up for rainy days.

[Othello]

Life is short, just do it. Get yourself a new car and make yourself happy

[Chucky2007]

  On 12/8/2014 at 8:34 AM, Othello said:

Life is short, just do it. Get yourself a new car and make yourself happy

this is also true.

[Tzc]

err 45k is not alot in singapore you can spend it within a nite on gals plus booze.

 

it's best you keep the money wisely or do some really sound investment

 

or buy just those bros here a meal with some food that have given so many good advices from page 1 till now

[Pocus]

45k, ah sounds like a lot but actually it a not really a lot considering the cost of living here.

 

If I have 45k all a sudden I'd probably lax my lifestyle for a month or 2 and splurge on good meals or pamper myself some gadgets or holiday.

 

But buying a car? Easy come easy go man.... and you end up spending more.