How Much Do You Need To Earn Per Month To Afford These Cars In Singapore?

Owning a car in Singapore can sometimes feel like a luxury, given the exorbitant prices we have to contend with - no thanks to factors such as rising fuel prices (which we have temporary solutions for!), a COE structure that somehow seems too robust to take a deep dive any time soon, and the introduction during Budget 2022 of an extra tier of ARF for vehicles with an OMV of more than S$80,000.

If you have a budget in mind, this shortlist of cars might serve as a benchmark of the types of cars you can narrow down on. You might be as surprised as us on what cars we can or cannot afford based on monthly incomes!

We acknowledge that there are countless methods to structure our finances to accomodate our priorities. For this research, estimated monthly loan repayments will be based on an average interest loan rate (2.28% for new cars), and assumes a loan period of 5 years. As this shortlist involves only new cars, it presumes that you’ve already saved up sufficient funds for the vehicle’s downpayment, which is 30% or 40% depending on the value of the vehicle’s OMV. We've also discounted the possibility of forking out a larger amount for the downpayment, which will have an impact on monthly loan fees and length of loan. And it speculates that the buyer does not have an exisitng vehicle to trade in, to offset the overall cost of the new car purchase.

Equally important will be the fact that we have varying comfort levels when it comes to how much of our monthly income we want to set aside for our car’s loan. Pending approval from banks, we’ll base this calculation on 25% of our monthly income. This research also excludes other costs such as road tax, insurance, and running costs (fuel bills and charging fees for EVs).

Monthly income: S$7,000 / Price: S$133,999

Gone were the days where the HR-V sat comfortably under S$90k before the pandemic struck. Now in its third generation, the “base” DX model costs S$30+ grand less than its sibling with hybrid tech, but we’ll still have to fork out a monthly loan repayment of S$1.7k over 5 years.

Monthly income: S$8,000 / Price: S$155,999

Based purely on aesthetics, the Mitsubishi Eclipse Cross might polarise opinions. But we cannot challenge its best-in-class practicality at a price placed at the more “affordable” end of the spectrum, at least in Singapore’s context. Willing to splash the cash in exchange for its excellent cruising capability and more-than-adequate 2nd row legroom?

Monthly income: S$12,000 / Price: S$263,000

Slotting in at more than a quarter of a million bucks, the Polestar 2 does not come cheap in Singapore’s context at least. Should you choose this over the Tesla Model 3? We might have the answer for you, but you’ll need to be earning a comfortable five-figure salary to enjoy this refreshing European flavour.

Monthly income: S$23,000 / Price: S$514,658

The numbers are getting tougher to swallow, but let’s see - a Porsche Taycan Cross Turismo 4S costs a sliver over half a million dollars. With its rugged appeal and electrifying pace, is it enough to justify its price?

Monthly income: S$30,500 / Price: S$685,940

We’re reaching ridiculous pricing categories here, but the Audi RS e-tron GT might be a tempting proposition for the country’s top 1 percent. Positioning cars with these price tags in our shortlist really puts things into perspective, but we’re certain that their wealth managers will dish out the best advice to finance this purchase. Are you ready to hustle?

Credits: Gerald Yuen