During the past 18 years in my working career, I encounter query from my co-workers, friends and relatives on why I don’t own a car. They mentioned the benefits of owning a car. The benefits include the convenience of moving from the point to point, status and many others options. I used to be influenced by such opinions due to peer pressure. However, I am glad that I did not take up such suggestion to own a car due to the cost incurred from owning a car. In the place which I resides in, one needs to buy a Certificate Of Entitlement (“COE”) in order to own a car and the amount is from $30,000 to $100,000 depending on the supply and demand. More details are as follows:
Apart from COE, there are other related cost such as the petrol, parking charges, toll charges and road taxes which are quite significant. Some details of the breakdown are as follows:
https://www.toyota.com.sg/finance/pricelist-passenger – Purchase Price Of A Sedan Car including COE
The cost of owning a car in Singapore can be $1,00 to $3,000 per month, depending on the type of model one choose.
Based on the above consideration, I decided not to own a car and prefer to rely on the public transport such as Mass Rapid Transit (“MRT”) or buses for my daily commute. I will only take a taxi when it is after the midnight in which the MRT and buses are not available or in rush of time or exceptional/urgent circumstance.
The saved money from not owning a car, is channelled into my investment portfolio which will in turn generate dividend on a continuous basis for a lifetime. This enables me to lead a relaxing lifestyle presently without worry of the minimalist lifestyle expenses covered by the dividends.