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How Much (%) Should The Car Monthly Loan Repayment Of Your Salary?


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#1
ckl050877

Posted 16 January 2013 - 08:20 AM

ckl050877

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How much do you think should we spend in term of percentage of our salary for car? What is the highest % for a healthy finanance condition?

I read some articles before. Some mentioned was 25% and some mentioned was 30%.

However, I think some of us make mistake where they do not consider and deduction of EPF and PCB (some may not need to pay PCB). After deduct the EPF and PCB, these amount of money can afford me to buy a car much better than my current car.

#2
vr2turbo

Posted 18 January 2013 - 10:16 AM

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QUOTE (ckl050877 @ Jan 16 2013, 08:20 AM) <{POST_SNAPBACK}>
How much do you think should we spend in term of percentage of our salary for car? What is the highest % for a healthy finanance condition?

I read some articles before. Some mentioned was 25% and some mentioned was 30%.

However, I think some of us make mistake where they do not consider and deduction of EPF and PCB (some may not need to pay PCB). After deduct the EPF and PCB, these amount of money can afford me to buy a car much better than my current car.

It all depends on the individual what they can afford. Some stay with parents no need to buy house so can afford more for car.
Got family, got house installment then can afford less..... smile_tongue.gif


#3
br1

Posted 18 January 2013 - 10:22 AM

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QUOTE (vr2turbo @ Jan 18 2013, 10:16 AM) <{POST_SNAPBACK}>
It all depends on the individual what they can afford. Some stay with parents no need to buy house so can afford more for car.
Got family, got house installment then can afford less..... smile_tongue.gif


no need to buy house, buy car can sleep in the car? hahahaha

#4
vr2turbo

Posted 19 January 2013 - 04:42 PM

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QUOTE (br1 @ Jan 18 2013, 10:22 AM) <{POST_SNAPBACK}>
no need to buy house, buy car can sleep in the car? hahahaha

Don't give the youngsters new ideas.....ahahahahaha smile_big.gif

#5
cute_boboi

Posted 25 January 2013 - 02:35 PM

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I guess is subjective. Most earning rm2.5k-4k-5k range, would like to buy a car of rm70k-100k range.
Giving 30% of rm3k ... that's about rm900, which maybe sufficient for 90% loan for 9 years.

How about those earning >10k+ ... 20% of 10k is already rm2k

Personally, I stick to 5 years and paying higher installments every month.

"When Columbus started out he didn`t know where he was going. When he got there he didn`t know where he was and when he got back he didn`t know where he had been." - Anonymous

#6
acheong7

Posted 30 January 2013 - 08:07 AM

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the gomen's or financial institutions' rule of thumb, ie 30% of gross salary is kinda rubbish
applicable in certain situations as bro vr2turbo sez

not for the rest of us salaried stiffs with home loans, card debt, family expenses ...
seems yesteryear requirements were stricter, ie 30% downpayment
nowadays, gimmick after gimmick to kill consumers and taxpayers
very very tunnel vision

spend what you comfortably can
if you don't mind a bit of tightness, by all means get something better

#7
fkmfkm

Posted 01 February 2013 - 10:26 AM

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QUOTE (acheong7 @ Jan 30 2013, 08:07 AM) <{POST_SNAPBACK}>
the gomen's or financial institutions' rule of thumb, ie 30% of gross salary is kinda rubbish
applicable in certain situations as bro vr2turbo sez

not for the rest of us salaried stiffs with home loans, card debt, family expenses ...
seems yesteryear requirements were stricter, ie 30% downpayment
nowadays, gimmick after gimmick to kill consumers and taxpayers
very very tunnel vision

spend what you comfortably can
if you don't mind a bit of tightness, by all means get something better



its just a general guide...

#8
amir

Posted 14 February 2013 - 12:04 PM

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QUOTE (br1 @ Jan 18 2013, 10:22 AM) <{POST_SNAPBACK}>
no need to buy house, buy car can sleep in the car? hahahaha


No need to buy car and house. Stay at parent house and drive parent's car. Parent got many cars and big house right?
Instead spent more on latest gadgets and electronics, clothings, social outings, travellings, hobbies etc. That's what the younger generation in developed countries are doing. Cars are for old men who like to talk about the good ol' days. But if really really need to use car, can always rent.

#9
fkmfkm

Posted 16 February 2013 - 11:48 AM

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QUOTE (amir @ Feb 14 2013, 12:04 PM) <{POST_SNAPBACK}>
No need to buy car and house. Stay at parent house and drive parent's car. Parent got many cars and big house right?
Instead spent more on latest gadgets and electronics, clothings, social outings, travellings, hobbies etc. That's what the younger generation in developed countries are doing. Cars are for old men who like to talk about the good ol' days. But if really really need to use car, can always rent.


and one house enuf to stay dont need many many house...

#10
ckl050877

Posted 20 February 2013 - 10:18 PM

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Why always some one think that 10k salary is very much?

Let me do some simple calculation:

Family monthly income = RM12,000
EPF = -RM1,100
PCB = -RM1,200
Housing loan = -RM3,300
(RM700k for double storey terrace house, 10% DP, 20yrs repayment, BLR-4.2%)
Monthly housing expenses (grocery) = -RM1,200
Monthly petrol, toll, meal = -RM650
Unifi, mobile postpaid = -RM250
Electricity and water = -RM250
For 2 kids (school fees, bus & others) = -RM500
(if they are babies, we need spend much more than RM500 for their milk podwer and pampers)
entertaiment/ shopping - 1 in a month =-RM200
Life insurance (ourselves and kids), average per month = -RM500
Average monthly car maintenance (2 cars) = -RM200
Average monthly car insurance (2 cars) = -RM150

How much left over? Answer is RM2500.
RM2500 is only 20% of RM12000.
Of course, RM2500 is enough to pay installment for 2 cars. But you can not afford to have nice cars.
Do not forget that there is always many unforeseen expenses every month.
Do not forget that we need to save money for emergency for education fund for kids.