Sell My Car

I personally practice (as far as I possibly can) to avoid purchases of big-ticket luxury items, especially those that will yield no return at the end of their life span. But to be frank, I made a grave financial mistake once, and landed myself into a pile of debt that I really hated.

I bought a car.

Why did I hate it so much that I had fights with my mom over this? She wants a car for a higher social status, to be exchanged with the expenses that I had to bear:

1. Monthly installment for the next 7 years - SGD $550.
2. Average fuel cost - SGD $400
3. Parking costs - SGD $100
4. Insurance premiums (amortized) - SGD $ 100
5. Road tax (amortized) - SGD $50.
6. Regular Maintenance - SGD $50

Easy-Forex? The best trading platform available today.
Forex trading involves substantial risk of loss, and may not be suitable for everyone.

That amounted to whopping SGD $1250 a month for the ownership of the car, and SGD $15,000 annually. (That translations to about USD $10,000 annually). And my car was only a Hyundai Getz 1.3L.

But late last year, just before Christmas, I made the tough decision to sell it off. It was sold at a loss relative to linear depreciation. But if I hadn't, I would have had to suffer more because of all the recurring costs (fuel, maintenance, etc) that I had to pay regardless.

My friends tell me, "I only see others go up the lifestyle ladder by purchasing a new car, or trading in for a better car. Hardly I've seen anyone who went down by selling off his car, and taking the bus to work."

So how did I go from being a car owner to a bus rider? Some discipline, some encourage from my dad, and mom (surprise, surprise!). At the end of the day, it's about planning my personal finance (remember, Earn More Spend Less), and sticking to it.

No doubt, my lifestyle has undergone a change, but no regrets. I'm a happy debt-free man! Can you guess how much richer I am annually now? No prizes for getting it right. :D

Recommended Reading

The Reason You Are Broke
10 Reasons Why I Ditched My Car