Car 01 (May 08 - Dec 12)

[Musicwhiz]

Wonder what's the average cost of owning a car these days ? Some of my friends have expressed desire to own a car, though fuel prices and ERP rates have been escalating.

Perhaps someone can share their experiences and costs of owning a car ? That would be helpful indeed. Thanks

[iam802]

Just some suggestions and observations (I am by no means a qualified advisor)

The key cost concern currently will be fuel prices. Example, 2 years back, a full tank of grade 98 fuel will cost about $90. Now, even after moving to a lower grade (95), it cost about $120 (or more). Will it move higher?

On the other hand, there are alternative. CPG(?) tanks are available but refuelling is not convenient.

'Bio-diesel' cars are on trial now. I am not sure when the government will approve it or change the tax structure. I have particiapted in a survey very recently, and the information presented suggest lower pricing for diesel cars.

As far as ERP is concern, there is no running away. I believe LTA has a blueprint for more ERP gantries. The govt. is trying to balance people's desire to own car , road usage and revenue

The little bits adds up to a fairly big expense. if you ask me, try to limit the running cost to, maybe, 10-15% of monthly salary ?

[kennynah]

Wonder what's the average cost of owning a car these days ? Some of my friends have expressed desire to own a car, though fuel prices and ERP rates have been escalating.

Perhaps someone can share their experiences and costs of owning a car ? That would be helpful indeed. Thanks

hi mw :

my take...if the car is a tool for livelihood, then it is a cost of business. if this cost is justifiable, then why not. if the car is for luxury, then it is an expense, to be seen like any other expenses; which is, can afford, why not, if cannot afford, then why take on this burden. some people spend $1k/month feasting at top end restaurants. who is to say that is wiser than wanting a comfortable ride.

erps, petrol, maintenance, etc...to me, are just distractions that clouds the decision making process of whether to buy a car..

enjoy your weekend.

[Musicwhiz]

Hi kennynah,

Thanks. So basically it all boils down to - is a car a WANT, or a NEED ?

[HengHeng]

well it is a choice of lifestyle if you "want" it , you can come out alot of cock and bull excuses to make it a "need"

[ehchang]

well it is a choice of lifestyle if you "want" it , you can come out alot of cock and bull excuses to make it a "need"

guess not everyone can do that.
I have wanted a car for some time, but still cannot come up with any excuse to make it a need.
I calculated the cost of owning a mid-size car to be about 1000/= a month for 10 years assuming I stretch the loan for 10 years, and including road tax, insurance, parking, petrol, maintenance. so until now still cannot ignore this : why waste on one car when $1000 a month can buy me a lot of 'happiness' every month.

[Musicwhiz]

Problem is that Singapore cars are brand new and thus depreciate extremely quickly. Added to that the additional "costs", I personally feel it more than outweighs the benefits. However, I still see many young couples buying cars, which leaves me to conclude that either they are earning a lot, or else they are in a lot of debt.

Too bad we cannot use the capital allowances (from the tax depreciation of the car) to offset our personal tax bills !

[millionairemind]

CNG—car drivers may have to pay additional tax from 2010

SINGAPORE : A lack of refuelling stations is not the only concern worrying drivers who are considering switching to Compressed Natural Gas (CNG). Drivers of CNG vehicles may have to pay an additional tax from 2010.
Sales Manager Isaac Tan drives 35,000 kilometres a year — much of it for his job.

Earlier this year, he bought a new car and planned to convert it for CNG use, to save fuel costs and the environment.

But he changed his mind at the last minute, because of costs — even though buyers of hybrid and CNG vehicles benefit from the Green Vehicle Rebate. This gives the buyer a 40 per cent discount on the car’s Open Market Value until 31 December 2009.

Mr Tan said, "I was surfing... the LTA website, ONE.MOTORING, and I realised there is this Special Tax involved on CNG. Right now, the government has waived it until 31 December 2009, but beyond that it’s unclear."

Recovering fuel duty and discouraging the use of polluting vehicles are reasons for the Special Tax.

Currently drivers of petrol vehicles pay duty of 41 cents per litre of intermediate grade petrol every time they top up their tanks.

So the owner of a 1,500cc petrol car who drives the average 21,000 kilometres a year spends about S$3,550 on petrol, of which about S$660 is petrol duty.

But duty is not charged on diesel or CNG at the filling station.

And diesel engines create more pollution. For example, the latest EURO IV diesel engines create five times more of the pollutant called PM2.5 than a petrol—driven car.

Special tax for EURO IV diesel vehicles is pegged at S$1.25 per engine cc. So the owner of a 1,600cc diesel vehicle pays S$2,000 a year in Special Tax.

The owner of a 1,600cc diesel vehicle who drives the average 21,000 kilometres a year would spend about S$1,900 a year on diesel.

But CNG vehicles produce cleaner emissions than petrol vehicles, so are exempt from Special Tax until 31 December 2009.

The Land Transport Authority (LTA) has not yet decided whether to extend the exemption. But it said if Special Tax is imposed on CNG cars, it will not necessarily be the same as that on Diesel IV vehicles.

Mr Tan said: "The way the government is setting the policies — or not setting the policies, rather — is not helping the public. And in fact, if they really want to encourage the public to go to greener vehicles, then they should set the policies right in the first place."
LTA said it will announce its decision on the Special Tax for CNG cars in due course. So for now, drivers considering a CNG vehicle will have to live with the uncertainty of higher taxes in future or wait until a decision is made. — CNA/ms

[Musicwhiz]

I am surprised to find out that there are "conditions" to owning CNG cars, and that such concessions will expire after FY 2009.

This makes it uneconomical for people to own CNG cars as their liability may increase more from FY 2010 onwards, which defeats the purpose eh ? I wonder if there is any good alternative to petrol cars, perhaps hydrogen or solar cars ?

[millionairemind]

Our 2 kars To walk to MRT stations/bus stop...