Friday 12 May 2017

True Cost of Car Ownership in Singapore (My Case Study)

I bought my current ride in March 2009 and this work horse has been serving me well for the past 8 years 2 months.

Perhaps it's due to the expiring COE, it suddenly occured to me how much in fact is the total cost of my ownership of the car.

Hence I did a quick calculation to find out.

Of course due to various reasons, the calculated figure would not be 100% accurate. However it is 'more or less there' and serves as a guideline to find out the ownership cost.

1. Car price including interest: $45,000

This was the second lowest price historically for this model and I was lucky to get it at this price mainly due to two reasons.

COE price was low.
Korean won was weakening at that time.

Therefore I decided to seize the opportunity and purchased the car.

This mentality is somewhat similar to my stock investment mentality - I do not time the market. Instead I move in for the purchase once my perceived fair value for that stock has reached.

2. 10 year road tax: $7,200

3. 10 year insurance: $10,000

My insurance premium for the first few years of driving was about $1,200 per annum. Now is about $800.

4. 10 year servicing: $5,000

First three years of servicings were complimentary. After that I did the regular servicings in other workshops outside. Each servicing range from $108 - $128 depending on which package I chose. I send my car for servicing about 4 times a year.

On top of these I also went for the occasional comprehensive servicing which costs more.

5. 10 year ERP: $6,000

6. 10 year season parking: $10,800

7. 10 year petrol: $38,400

My mileage is averaging 14 - 15 km/l of petrol. And my monthly petrol bill is between $280 - $320.

8. Repair: $3,000

The car has no major issue in the first 5 years. After that I only changed 2 major components which were giving me problem - the aircon compressor and cooling coil.

Cost of both came up to about $1,200. Hopefully nothing more from now on.

9. Tyres: $5,000

4 tyres cost about $500 and I changed just about every year.

10. Misc: $2,000

I changed my rims once along with a set of new tyres for about $1,200 when my ride was still new.

To summarise the total cost of my car ownership, it costs me S$132,400 !! to use the car for a miserly ten years in Singapore.

This is enough to pay for the down payment of a condo unit.

Not that I am a strong advocate for cars. I usually take the public transport with my wife during the weekends.

However due to the nature of my job, a car has became a need, not a want in my case.

1 comment:

  1. That’s what I was looking for. I am talking about all topics bundled in this blog. They all are really very useful for me as well as for my team. We are definitely going to use its highlighted information.ร่ม บัง แดด แบบ คลุม รถยนต์