Everyone knows owning a car is expensive in Singapore. So how much does it cost to maintain and keep a car in Singapore?
Let’s assume the cost to own a popular car, Honda Vezel,
Cost of Honda Vezel: $92,000 (Basic Model)
Installment: Based on 70% loan @ 2.28% interest: $889 a month
Down Payment : $27,600
Estimated Parf rebate at the end of 10 years: $8000.
Road Tax: $682 ($6820 for 10 years,or $56.83 per month) Source: https://vrl.lta.gov.sg/lta/vrl/action/pubfunc?ID=EnquireRoadTaxByEngCap
Based on my experience as a frequent driver, it is estimated to be $240 a month, after taking in account of all possible discounts. I pump at SPC which gives the most discount using SPC card and POSB everyday card.
If you drive to town everyday, depending on the route taken, it can range from $50 a month to $100 a month.
HDB multi storey carpark: $110 per month
Or HDB open carpark: $80 per month.
For condo residences, it is already paid for in the maintenance and sinking fund.
For landed residences, it is free to park along the roadside.
Estimate for additional parking cost: $100 per month.
Average insurance cost is about $1,200 a year based on your age and experience. It works out to $100 per month.
Repair and Maintenance Cost
Repair and maintenance cost: It is estimated to be $400 a year (or $33 a month) unless there are major repair costs involving gear box and engines.
Total running Monthly cost: $889 + $56.83 + $110 + $100 + $100 + $240 + $100 + $33 = $1628.33 a month.
Including your downpayment of $27,600, your monthly cost is $1628.33 + ($27,600 – $8,000)/10/12 = $1,791.66 a month
Does it make sense for me to own a car?
The ownership of a car is primarily to save time. A car can help to save precious time, especially when you need to make multiple trips a day. You are likely to save close to 1 to 2 hours every day by driving to fulfill your tasks.
Assuming it helps to save you 30 hours a month (1 hour a day for 30 days), the hours saved cost you $59.77 per hour.
If you are someone who likes the convenience of a car, you have to make in excess of $10,000 a month to afford it comfortably. (Assuming you have existing mortgage installments of $4000, leaving you another $4000 to plan for your other expenditure needs.)
There are other unexpected costs associated with car ownership, ie excesses from accidents and major repairs which are not factored in. This will also drive up the cost of owning one.