Simply Sales Talk: Transport allowance
For most sales person, a car is a necessity. I remember how it was compulsory to have a car for me to get my first job. No car, no job.
In 2009, I bought myself a second hand car. It was a luxurious buy for me as a new graduate. At that time, the economy was doing badly due to Lehman brothers so COE was hovering around 5 to 15k. I could only afford the cheapest which is a 2 years old Toyota Vios at 42k with COE at 12k. Unlimited loans that could stretch to 10 years were possible and interest rate were really good at around 1.3%, so that was it.
As my parents put it, I have not started earning money but only know how to spend money first.
Terrible. Monthly savings were pathetic due to the car loan. Most companies give $800 (SME) to $1500 (MNC) of transport allowance that still has to be deducted for CPF. This is one part I don't understand, why deduct my allowance for CPF when it's supposed to pay for the transport?!
Anyway, it's time to change another car as it's nearing 10 years. Sigh.
I complained so much that time about the price of the car and I think I should complain even louder now. COE stands at 43k, interest rate at more than 2.8%, down payment of at least 40% and loan cannot exceed 5 years unless I borrow from individual agents.
The cheapest sedan now cost more than S$90k. Time to bang my head.
The increase in price is solely because of the increased price of COE. I can understand that people are getting more affluent while car prices have stagnated. The increased demand coupled with lower supply the last few years have seen COE climbed to a record high $92,100 (Cat A) in Jan 2013. Prices have softened somewhat but it's still outrageous for middle class people like me. I understand that the government wants to limit the number of cars but for people who has to buy a car for their job, we are being sacrificed!
No choice, have to bite the bullet unless I were to change my career. I am hoping price of COE will continue to drop so I can at least afford a Honda Vezel or Hyundai Elantra. That's the cheapest car that I can find that still gives me some assurance on reliability.
Headache hor?
 |
| How nice if I could own a red car |
In 2009, I bought myself a second hand car. It was a luxurious buy for me as a new graduate. At that time, the economy was doing badly due to Lehman brothers so COE was hovering around 5 to 15k. I could only afford the cheapest which is a 2 years old Toyota Vios at 42k with COE at 12k. Unlimited loans that could stretch to 10 years were possible and interest rate were really good at around 1.3%, so that was it.
As my parents put it, I have not started earning money but only know how to spend money first.
Terrible. Monthly savings were pathetic due to the car loan. Most companies give $800 (SME) to $1500 (MNC) of transport allowance that still has to be deducted for CPF. This is one part I don't understand, why deduct my allowance for CPF when it's supposed to pay for the transport?!
Anyway, it's time to change another car as it's nearing 10 years. Sigh.
I complained so much that time about the price of the car and I think I should complain even louder now. COE stands at 43k, interest rate at more than 2.8%, down payment of at least 40% and loan cannot exceed 5 years unless I borrow from individual agents.
The cheapest sedan now cost more than S$90k. Time to bang my head.
 |
| I think I can only afford trucks in this condition |
No choice, have to bite the bullet unless I were to change my career. I am hoping price of COE will continue to drop so I can at least afford a Honda Vezel or Hyundai Elantra. That's the cheapest car that I can find that still gives me some assurance on reliability.
Headache hor?
Jes
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Car prices and related costs (insurance, repairs, ERP etc) continue to be expensive here in Singapore! It's good that the prices have softened somewhat but it certainly is impacting the middle class like us more!
ReplyDeleteHi TFS,
DeleteIndeed, middle class people are squeezed all over not just in transport. COE so high but still people are buying.. Means people can still afford it.
Another option is to buy a new 10-year COE to extend the life of your car.
ReplyDeleteHi there,
DeleteYes it's definitely possible but I don't think my car, being second hand and having high mileage due to my frequent travel, can last another 5 years :( Thanks for the suggestion though.
Try Nissan Note 1.2 - Made in Japan reliability and spacious and around $90K
ReplyDeleteHi there,
DeleteThe review of it is not better than Vezel but I will definitely consider it. Thanks for the recommendation!
Nissan...QASHQAI
ReplyDeleteHi CP,
DeleteYou driving this car ah? QQ is the rival of Vezel but the design very manly leh hehe.
Hi Jes, no lah, just eyeing it. Looks like a very sturdy dung beetle :D
DeleteYou going for the Vezel? Seems like got issues with parts/recall.
Hi CP,
ReplyDeleteTrue but more like a family car though. If you want your image to stick as a single, carefree sales person then it's not for you :P
Yeah so far I think Vezel is affordable and reliable. I heard of the recall so hope the newer batch will not have any problems anymore.