How to own a new Merc C class?

[Enye]

  On 3/31/2015 at 8:09 AM, Wt_know said:

can someone help me how to own a porky 911

what's the annual income for owning porky 911?

sell my hdb also no enough to buy a porky ... how?

but my mscp got 2 x porky leh ... i wonder what is their salary ...

 

sell 1 of your condos and your f10

 

should be enough

 

still have not reach T2 stage of selling watches yet

 

Edited March 31, 2015 by Enye

[Holdenutessv]

4k... Unless you're not willing to buy anything fancy and eat biscuits or bread as your meals, I guess you could but then again, hardly anyone would do this.

Get rid of the "itch" and have a 08/09 C180K instead and save the rest of the money.

[Ake109]

  On 3/31/2015 at 6:59 AM, Jellandross said:

 

 

just to give you a different perspective. my american colleague's annual package is around $300K++. he said singaporeans are insane by throwing their money into cars that we don't even own for more than 10 years. he is driving a 7-yr-old honda jazz.

 

 

For someone earning $300k+, he is actually better off buying a SGD 300k car in Singapore than the equilvalent USD 50k car in America.

 

Because back home, his salary package of $300k would invite at least 30k more in taxes per year. More than enough to cover the price difference.

 

Of course he smarter, save on tax _and_ buy old Jazz. Best of both worlds.

[Alheych]

  On 3/31/2015 at 2:21 AM, Magfocus said:

I recall there was a guy who earned 3k and bought a C class? It will be good for him to share his experience so far..

 

Finally... someone else in this forum is old enough to recall the thread, I've dug it up:

 

http://www.mycarforum.com/topic/2649122-fresh-graduate-buying-a-car/S

 

http://www.mycarforum.com/index.php?app=core&module=search&do=user_activity&mid=37462&userMode=content

 

Summary: a fresh graduate with $3000 starting salary before CPF sought advice from forumers and claims to have decided on a C-class and set his sights on a Rolls in 15 years. Insulted everyone who replied. The thread ran up to 87 pages.

 

Wow, it's been 5 years already.

Edited March 31, 2015 by Alheych

[Wt_know]

same guy?

5 years salary up $1k to $4k liao?

how many years to go to own R&R

[Nzy]

  On 3/30/2015 at 2:57 PM, Submarine82 said:

Can advise which job able to earn $400k per year?

CFO,COO?

 

Alot la. I have some friends doing MLM buying Merc, BMW and Porsches. My insurance agent used to drive a Maserati.

[Wt_know]

sunshine empire all drive bmw ... lol

 

  On 3/31/2015 at 10:49 AM, Nzy said:

 

Alot la. I have some friends doing MLM buying Merc, BMW and Porsches. My insurance agent used to drive a Maserati.

[Thaiyotakamli]

  On 3/31/2015 at 10:10 AM, Ake109 said:

 

For someone earning $300k+, he is actually better off buying a SGD 300k car in Singapore than the equilvalent USD 50k car in America.

 

Because back home, his salary package of $300k would invite at least 30k more in taxes per year. More than enough to cover the price difference.

 

Of course he smarter, save on tax _and_ buy old Jazz. Best of both worlds.

Its not the way he see car ownership is depreciating asset and end up getting droving a jazz with that salary simply means he dunno how to spend money

[Jamesc]

TS wait no more.

 

You are a master degree holder, you deserve a new C class.

 

First thing tomorrow go down to the showroom

 

and buy one. Don't worry about paying the installment

 

as you will not be earning $4k forever.

 

Getting a master degree mean you are exceptionally smart

 

and its only a matter of time before you will earning big bucks.

 

[Thaiyotakamli]

  On 3/31/2015 at 10:47 AM, Wt_know said:

same guy?

5 years salary up $1k to $4k liao?

how many years to go to own R&R

He must learn from u, within 10 years buy new F10, next 5 years with 911

[Angcheek]

  On 3/31/2015 at 12:03 PM, Jamesc said:

TS wait no more.

 

You are a master degree holder, you deserve a new C class.

 

First thing tomorrow go down to the showroom

 

and buy one. Don't worry about paying the installment

 

as you will not be earning $4k forever.

 

Getting a master degree mean you are exceptionally smart

 

and its only a matter of time before you will earning big bucks.

 

 

Very encouraging and optimistic to life ..... I like ! DP $100K , if he has that kind of money to spare , Mai Tu liao !

[3ply]

Actually 4k salary means take home pay 3.2k monthly after CPF contribution. On top of that, have to pay for petrol, road tax, ERP, parking, car maintenance, car insurance, service car loan, not to mention the usual bills like handphone bill, daily expenses etc.

 

Whatever is left, can save enough to go for masters? Teach me how to leh.

Edited March 31, 2015 by 3ply

[Forte3737]

  On 3/31/2015 at 12:03 PM, Jamesc said:

TS wait no more.

 

You are a master degree holder, you deserve a new C class.

 

First thing tomorrow go down to the showroom

 

and buy one. Don't worry about paying the installment

 

as you will not be earning $4k forever.

 

Getting a master degree mean you are exceptionally smart

 

and its only a matter of time before you will earning big bucks.

 

U be his guarantor

[Dumb]

My japun car expiring in Jul 2016. I also like to get a C or E class but the thought of parts and maintenance puts me off even though I could pay in full anytime.

[Mr_b20]

  On 3/30/2015 at 1:56 PM, Submarine82 said:

Hi All,

 

I am driving Hyundai Getz now. Its COE is due in one year time.

I am 33 years old and earning $4k per month.

 

I am car enthusiast and I wish to own a new Merc C class in the near future.

 

Do you think it is possible to own a new Merc C class at my current salary level?

If not, what should I do?

 

Any kind soul please advice me...

 

car enthusiast and wanna go for c class??

i think u badge whore more than car enthusiast

[Mercury1]

You are the man you took more time to breakdown in detail then the OP himself. Great show of pragmatism vs idealistism

 

 

 

 

  On 3/31/2015 at 4:58 AM, efssc said:

 

Let me try.

 

First question; anything is possible, but I think it will be a very bad decision to go ahead with a new C Class at your current income level, one that will haunt you for years.

 

With that out of the way, let's tackle the hard part.

 

I read through your posts and gathered the following info;

 

1) You earn $4k monthly, increment around 4% ($150) with no mention of supplement wages, I will assume you only have the basic 13th month.

 

2) You're 33 and mentioned you're already letting out 1 room, but at 33 you cannot buy HDB as a single so I assume you have a family. No mention of wife's or any other salary so I'll base on only your income.

 

The thing is not how much you need to earn, but rather, how much you can save?

 

Finances

I assume your $4k salary is before CPF, so after CPF that leaves you $3.2k to bring home. If you have a young family you probably need to spend at least $2k ~ $2.5k if you live frugally, that leaves you $700~$1200 of savings per month. I take average $1k per month, multiply by 12 months + you save 50% of your 13th month = 12 x $1k + 0.5 x $3.2k = $13.6k a year, I will round that down to $13.5k.

 

Time Frame

Your Getz has one more year to go, after which you plan to extend your COE by 5 years (since you already have this plan I assume the 5-year COE cost has been catered for), that gives you 6 years.

 

Cost of Car

A quick ref on SgCarmart shows the lowest cost C-Class, a parallel imported C180 1.8 Sport Coupe costs about $170k. But car prices fluctuates, so in 6 years assuming 3% inflation that translates into about $205k (and this is pretty optimistic, reality can be so much harsher), that in turn translates into a downpayment of $103k and a monthly installment of around $2k (5 year loan @ 2.5% interest)

 

Scenario 1 - Pure Savings

As mentioned earlier you have 6 years. If I take $13.5k / year x 6 years with a compound 4% increment per year, your total savings at the end of year 6 = around $89.5k, not quite enough for the $103k downpayment.

 

Scenario 2 - Investing

Building on Scenario 1, assuming you invest your yearly savings for an annual return of 4% (invest at the end of every year) instead of simply letting it sit in a bank, your total investment value at the end of year 6 increases to around $98.5k, slightly better but still a little short of the $103k.

 

Projected Salary and Expenses

Also by the 6th year, your project salary (at 4% annual increment) will be at slightly below $5.1k, or $4k take home, while your expenses (at 3% inflation) will increase to around $2.4k ~ $3k, leaving you with not enough to service that $2k monthly installment, and we have not even factor in the addition costs of running a C-Class vs a Getz.

 

Working Backwards

Monthly installment = $2k, + another $1.2k for running costs (again, optimistic), + $3k for your family expenses, that brings your total project expenses in 6 years to $6.2k, lets round it up to $6.5k for a little buffer, that means your gross pay needs to be around $7.7k~$8k (new CPF cap at $6k, or $1.2k contribution).

 

You'll need a job that pays you $6k NOW with a 5% annual increment in order for you to achieve $8k in 6 years.

 

Also a $6k job will allow you to save $2k a month (frugal living), bringing your potential savings in 6 years to $179k or your potential investment returns to $194k, more than enough for that downpayment and then some (something for kid's college funds maybe?).

 

But having said all these, even if it can be done, please don't do it, coz you'll be sacrificing a lot in life just for a car (especially the part where you will be spending more on your car than you will on your family, that's just so sad ).

 

This has become a super-long post, hence I will end it here, anyway this is just a very rough estimate / projection, pop questions if you like to discuss further.

 

[Submarine82]

  On 3/31/2015 at 1:53 AM, Civic6228 said:

 

Please do not over react lah ....

 

He only wished lah ....

 

I also wished to buy the Bentley and a nice sea facing home in Sentosa .... nothing wrong ... wish only.

 

But if i wrote, I want to .... then it is a different case altogether ....

 

"If you say you are a dreamer, it's ok .... you are not the only one"

 

Finally someone spotted.

I just wish to buy. Not want to buy.

 

I know 4k salary is impossible to buy now.

How about future?

This is the reason why I am asking how to own a new merc here.

 

If I keep working as a software engineer, it seems difficult to achieve this target.

At most I can promote to software manager, which earn $6k only.

So i hope someone can enlighten me.

Eg: Which field should I change for higher salary in the future?

How to increase my current income?

[Submarine82]

  On 3/31/2015 at 4:58 AM, efssc said:

 

Let me try.

 

First question; anything is possible, but I think it will be a very bad decision to go ahead with a new C Class at your current income level, one that will haunt you for years.

 

With that out of the way, let's tackle the hard part.

 

I read through your posts and gathered the following info;

 

1) You earn $4k monthly, increment around 4% ($150) with no mention of supplement wages, I will assume you only have the basic 13th month.

 

2) You're 33 and mentioned you're already letting out 1 room, but at 33 you cannot buy HDB as a single so I assume you have a family. No mention of wife's or any other salary so I'll base on only your income.

 

The thing is not how much you need to earn, but rather, how much you can save?

 

Finances

I assume your $4k salary is before CPF, so after CPF that leaves you $3.2k to bring home. If you have a young family you probably need to spend at least $2k ~ $2.5k if you live frugally, that leaves you $700~$1200 of savings per month. I take average $1k per month, multiply by 12 months + you save 50% of your 13th month = 12 x $1k + 0.5 x $3.2k = $13.6k a year, I will round that down to $13.5k.

 

Time Frame

Your Getz has one more year to go, after which you plan to extend your COE by 5 years (since you already have this plan I assume the 5-year COE cost has been catered for), that gives you 6 years.

 

Cost of Car

A quick ref on SgCarmart shows the lowest cost C-Class, a parallel imported C180 1.8 Sport Coupe costs about $170k. But car prices fluctuates, so in 6 years assuming 3% inflation that translates into about $205k (and this is pretty optimistic, reality can be so much harsher), that in turn translates into a downpayment of $103k and a monthly installment of around $2k (5 year loan @ 2.5% interest)

 

Scenario 1 - Pure Savings

As mentioned earlier you have 6 years. If I take $13.5k / year x 6 years with a compound 4% increment per year, your total savings at the end of year 6 = around $89.5k, not quite enough for the $103k downpayment.

 

Scenario 2 - Investing

Building on Scenario 1, assuming you invest your yearly savings for an annual return of 4% (invest at the end of every year) instead of simply letting it sit in a bank, your total investment value at the end of year 6 increases to around $98.5k, slightly better but still a little short of the $103k.

 

Projected Salary and Expenses

Also by the 6th year, your project salary (at 4% annual increment) will be at slightly below $5.1k, or $4k take home, while your expenses (at 3% inflation) will increase to around $2.4k ~ $3k, leaving you with not enough to service that $2k monthly installment, and we have not even factor in the addition costs of running a C-Class vs a Getz.

 

Working Backwards

Monthly installment = $2k, + another $1.2k for running costs (again, optimistic), + $3k for your family expenses, that brings your total project expenses in 6 years to $6.2k, lets round it up to $6.5k for a little buffer, that means your gross pay needs to be around $7.7k~$8k (new CPF cap at $6k, or $1.2k contribution).

 

You'll need a job that pays you $6k NOW with a 5% annual increment in order for you to achieve $8k in 6 years.

 

Also a $6k job will allow you to save $2k a month (frugal living), bringing your potential savings in 6 years to $179k or your potential investment returns to $194k, more than enough for that downpayment and then some (something for kid's college funds maybe?).

 

But having said all these, even if it can be done, please don't do it, coz you'll be sacrificing a lot in life just for a car (especially the part where you will be spending more on your car than you will on your family, that's just so sad ).

 

This has become a super-long post, hence I will end it here, anyway this is just a very rough estimate / projection, pop questions if you like to discuss further.

 

Much appreciated for your analysis. I plan to change field in order to achieve my target.

Do you have any suggestion on this?

  On 3/31/2015 at 6:37 AM, Nigel8210 said:

maybe TS can consider CLA instead of C

personally I went from Madza 3 (2nd hand) to New Altis to New Camry to New C

took me 15years to realise this dream

I would say, one step at a time, be prudent

car is a car, in spore, its almost always depreciating

property of your own more important, at least in the long run

Mind to share how you able to achieve?

What is your occupation now?