In most countries, a car is a necessity. This applies especially to large countries where people need to take great pains to traverse from one city to the next that may be hundreds of miles apart. Furthermore, for an enormous country, extensive infrastructural developments for an efficient public transportation system are not only costly but time-consuming. Not to mention the strong political will and tenacity required to win over the support of affected residents for a given construction project. Battling against all these odds is no easy feat and the results are self-evident.
In the United States last year, the number of vehicles on the road reached a record level of almost 253 million for a population size of 319 million, roughly equivalent to 4 automobiles for every 5 people. Contrast this ratio with Singapore’s 1 automobile for nearly every 7 individuals in 2014. Such statistics actually do paint a clearer picture than a thousand words. It highlights the fact that owning a car in Singapore is no longer a prerogative, but a luxury.
If a car is now a want instead of a need, how should we value the purchase so as to ensure that we are not overpaying for the convenience and comfort? Shown below is a basic flowchart that may be useful for the first round of consideration by potential car buyers. The key assumption made here is that the monthly fuel cost can be approximated to your transport fare; therefore the costs under review are incremental costs.
Note that this model has not accounted for miscellaneous expenses related to maintenance, repairs, ERP, road taxes and insurance.
Singapore’s Public Transportation aids in the nation’s economic and environmental challenges. Most locals prefer to travel via train or bus just because it is safe, fast, and efficient. On that note, here are the background, tips, and benefits of traveling thru Public Transportation…
BACKGROUND
1. TRAIN OR MASS RAPID TRANSIT (MRT)
As most parts of Singapore are accessible by the MRT, it proves to be an affordable and convenient option. Get cheaper rates by traveling with a concession card (i.e., Child Concession Card, Student Concession Card, NSF Concession Card, and Senior Citizen Concession Card). In fact, Senior Citizen Concession Card get 25% off adult fares all day.
If you are a tourist, you are in luck! The MRT stations are made to be merely walking distance from the notable attractions such as the museums.
2. BUS
The buses provide the most picturesque view of the Lion City at budget-friendly fares ranging from S$1-3. All the children below 7 years old get to enjoy free travel. It is important to know that all commuters are charged based on their total distance traveled (i.e., no transfer costs) whether it is by bus or by train. So, the fares depend on your location and destination.
TIPS
1. MOVE TO THE CENTER OF THE TRAIN
Moving to the center of the MRT does not only help passengers to smoothly go in and out but it will also help you to get a seat.
2. CHECK YOUR BELONGINGS
Always take care of your valuables. Although your lost item can be retrieved, there is a slim chance that the finder may choose to keep it.
3. GET AN ESTIMATE OF YOUR DISTANCE FARE
Use the standard online calculator available here to estimate your travel costs. Find alternative routes to get the cheapest fare.
BENEFITS
1. SAVE CASH
It is no surprise that Public Transportation saves you more money as the price of owning a car here is overwhelming. Adding to that, going by bus or by train can help you beat the petrol price hike and the cost for maintaining a vehicle.
2. SAVE THE ENVIRONMENT
Public Transportation saves our environment as it reduces carbon emissions, petrol consumption, and congestion. Imagine if every family owns a car, given the scarcity of land, congestion will unfold.
Aside from preventing congestion, it is more energy efficient that private cars. According to the Land Transport Authority, the average carbon footprint per 10 km released by bus is 0.19kg while the by train is 0.13kg. This is smaller compared to the carbon footprint released by a private car (1.87kg)!
3. IMPROVE YOUR HEALTH
Access to Public Transportation enables you to walk to and from the bus or MRT station. That is a no-cost way to exercise! Also, it avoids the stress you may get from driving especially during rush hours.
Owning and maintaining a car in any country especially Singapore can get very expensive. This is why pays to know how to save on your car costs.
Insurance and petrol costs may feel like fixed, but you can cut them down without sacrificing your safety and comfort. Try these 6 tips.
1. DRIVE SAFELY AND STEADILY
Being a speedster may cost you a lot on fuel and accidents. Accelerating quickly and kicking on the breaks hastily only wastes fuel. It also makes your brake pads and suspension system wear out faster. So, drive in a steady pace in top gear.
2. SEARCH THE BEST REBATE CARD FOR YOUR PETROL
With several petroleum companies in Singapore, you may wonder which company offers the cheapest petrol. Money Digest made things easier for you by comparing the credit cards that offer petrol discount in the market today. To see the full table and complete list, click here.
3. SHOP FOR CAR INSURANCE REGULARLY
It really pays to compare prices and switching your car insurance company (every year or every two years) to get the best deal. Get quotes from several companies and let the experts diagnose your car to save more. You may also want to raise your deductible to save more in case an accident or a major repair occurs.
4. GET RID OF THE SECOND CAR
If one car is enough and you are using your other car only to commute to work, consider public transportation or carpooling instead.
5. DITCH THE CAR WITH HIGHER ENGINE
To avoid accidents from happening, prevent them. Statistically cars with a higher engine are more likely to crash. More so, the bigger the engine of the car, the higher is its amount on insurance policies.
6. GET SERVICES FROM A REVIEW WORTHY GOOD MECHANIC
If you are not sure why your car is acting strangely, do not diagnose and solve the problem by yourself. Saying “it needs a new battery” might urge a shop to install one even if that is not the problem. This will only cost you more. Let the experts handle it.
Image Credits: Bob n Renee via Flickr
Now, your job is to find a good mechanic and a nice repair deal by getting estimates from three or more repair shops by gathering referrals from friends and surfing online for reviews. Try Yelp.com or Singapore car forums.
Aside from your wedding or your house, a car is one of the biggest investments you will make in your entire life. You do not want to pay more that what the car is worth or get stuck in paying your car loan. This is why it is paramount that you do it right.
1. TIME IS ESSENTIAL
Due to working hours, circumstance, and quota system, the best time to shop for a car is on the last weekdays of the month.
Most car shoppers visit the store during weekends where salespeople are usually busy. To ensure undivided attention, purchase a car early in the week. It is best to purchase later within the day, as salespeople are anxious to get home so they will spend less time negotiating. Lastly, best deals are at the end of the month especially if the dealers are just a few sales away from reaching their quota to meet their incentives.
2. BUY THE OLDER MODELS
Instead of buying a new model of car and losing a great deal of money, purchase a car that is at least 1 to 2 years older. Some may even take second-hand or used cars into consideration.
3. RESEARCH TO BE ENLIGHTENED
Determine how much you want to spend and whether you want to buy a brand new or secondhand car. This will give you a view of how long you have to save to replace your current car (if applicable). Research on the real value of your car options to see if you are getting a good deal.
4. RESIST THE UNNECESSARY
Dealers may make you pay more that you have intended so be firm and him or her that you mean business. Since they work on commission, they may offer you warranty, road service packages, and so on. If it is not needed, say no and stick to it.
Image Credits: JOHN LLOYD via Flickr
Don’t allow yourself to feel uncomfortable and pressured into anything you are not interested in. If you go with a certain number in your head, stick to it. Now is not the time to stray from your budget.
Do you know the feeling when walking from the closest MRT station towards your house and it simply takes forever? Driving around the island of Singapore is a true pleasure. One hardly ever encounters a traffic jam and generally gets quickly to any desired place. There isn’t any problem with pollution or a high car density. However, driving and owning a car in Singapore can be a costly undertaking. It is not only the car and its license that is expensive, but also the car insurance can weigh heavy on one’s finances. No matter how much money one has – there isn’t any chance that one can lower the government-imposed charges for the usage of the car. Therefore, it is even more important that one finds a beneficial deal for the car insurance.
The first trick to safe money is the oldest one in the book – drive safely. However, many people are not aware of the system that car insurances around the world use. If one has a car accident, the rate one has to pay monthly or yearly is instantly increased. If you are driving safely around Singapore over a long period of time, your car insurance will remain the same or even shrink slightly. Those people, who tend to crash their car, will not only pay for the reparation, but also for the continuously increasing car insurance. Many car insurances offer a no-claim discount (NCD). This allows for a 10% discount for every year in which you haven’t claimed anything. If you for example have only a minor dent in the car, you may want to consider not claiming it from your insurance, as you can possibly save more with the discount. The NCD can reach a maximum discount of 50%, with which one can safe potentially thousands of hard-earned dollars.
Not only being a safe driver, but also being a law-obeying driver can help you with the insurance. Fancy and fast cars are extremely attractive in Singapore, but even if you have one of those racecars, you are still subject to the speed limits. If you have a clean license over an extended period of time, you can earn a further discount instead of another ticket. After three years driving without committing a traffic offence, you can get the Certificate of Merit (COM), which brings you a further 5% discount on top of NCD. Using all this saved money, one can buy a ticket for the Formula 1 Race in September and enjoy proper racing.
When you are arranging a new car insurance policy, then pay attention to what you actually commit. Many policies often include unnecessary points. Go through them and use your commonsense. It can be that your car insurance also covers you for something that you are already covered for. A personal injury policy within your car insurance is very good, but a total waste of money if your health insurance already takes care of you in the case of an accident. Being covered twice for the same cause will not bring you double money and doesn’t mean you can claim it twice. Furthermore, one should check exactly what policy covers what points. When renting a car, one might be already covered in the case of an accident through another insurance. Different policies might have different names, but cover actually the very same thing. A rental-car insurance might include the same points as a collision policy. Therefore, it is very important, if one wants to save money, to double check the covered points in a insurance. Furthermore, one should eliminate all unnecessary points.
Car and accident statistics aren’t the best friends of young drivers. Unfortunately, an inexperienced young driver has the tendency to crash a car more often than older and more experienced drivers. This results in a higher insurance policy for younger drivers in general. Even if you are driving perfectly, you are paying more by default. Therefore, it is advisable to let your experience on the road be reflected in your policy. If you have been driving for more than ten years without any accident, then you should make a point of it in your new insurance. Not everybody has the possibility to do so, but there is another trick. One can for example insure the car on another person or include a driver with more experience into the policy. Mixing a high risk and a low risk profile will in most cases reduce the insurance. Therefore, one should check who is a low risk profile. Statistically older or female drivers will fall in this category. Listing such as the main driver in one’s car insurance policy, can save some money.
Each car is categorized with a certain amount of insurance money that the owner has to pay. It is generally known that the bigger the engine of the car, the higher is this amount. The reasoning of the car insurance companies is the higher risk. Statistically cars with a higher engine are more likely to crash. For obvious reasons insurances are all about statistics. So if you can beat the statistic, you will save some money. Most people will not modify their car, however there are car enthusiasts that do. A simple engine tweak or any other car modification can quickly become very expensive. What seems like a body shop bargain, can become a killer within the insurance policy. Therefore, it is worthwhile to check with your car insurance whether an upgrade is necessary.
Of course one could say that the insurance company doesn’t have to know. This is however an extremely risky undertaking. In case you do have an accident with your modified car and you haven’t notified your insurance about it, you can loose your cover immediately. Even if you haven’t caused the accident, the insurance company can refuse to pay anything. Hence, one shouldn’t modify outside the regulations of the Land Transport Authority (LTA) and definitely not keep it a secret. Handling your car insurance correctly doesn’t take too long and can award you with some extra cash.
