Is buying a car now a financially sound decision?
Hi guys, I need some advice to improve my financial planning.
I am a 28M working a 9-5 day job that pays 5.3k/ month before CPF and a 7-10 night tuition job every weekday night that pays 3-3.6k/month.
Total cash in bank = 30k
Total cash in CPF OA = 45k
Total income/ month = 8-8.5k / ~7k after CPF deduction
Total investments = 35k (dca 2.5k/ month)
Total expenditure = 1.5k/ month
Total cash after - expenditure & investments = 3-3.5k
I have a wedding in Q4 2027 (Budget 30k)
I have a BTO in Q4 2028 (Reno budget 50k), down payment fully paid for by CPF.
I want to buy a PARF car with 2-3 years left (ARF = 26k, take back 13k) that costs 50-55k.
Down payment = ~15-20k
Monthly instalment = ~1.3-1.5k (parking, petrol included)
This car will help reduce daily travel time from 2.5h to about 1h.
Is this a financially sound purchase? Also if you have advice to improve my financial situation, I am willing to hear them! Thank you so much in advance!