With COE so high, is owning a car even worth it for a young family?

Question

We have a baby and a toddler and lugging them around on public transport plus Grab is getting tiring. But COE is insane now. Does owning a car make financial sense for a family or should we just keep Grab-ing?

Regular Sergeant Faiz · Accepted Answer

Ran the numbers hard before buying with two young kids. Truth: owning a car in SG is almost never the cheaper option versus Grab and public transport, the COE, depreciation, insurance, road tax, parking and petrol easily hit 1.8k to 2.5k a month all-in for a modest car. If you Grab less than say 1.5k a month, ownership loses on pure cost. BUT with a baby and toddler, you're not really paying for transport, you're paying for convenience, car seats already installed, going out without begging for a Grab in the rain with a screaming kid, boot for the stroller and groceries. That has real value for a young family that no spreadsheet captures. My advice: if you can comfortably afford it without straining your savings and CPF for the flat, a car in these years is a quality-of-life buy, not an investment. Consider a used car with a few years of COE left to soften the hit.

Dog Dad Terrence · Answer

Bought a car when my second was born and don't regret it despite the cost, but I'll be honest it delayed our other financial goals. Just go in clear-eyed that it's a lifestyle expense during the young-kids years, not something that saves money. Sell when they're older if you want.

SMU Grad Xinyi · Answer

Look at a used car or even car-sharing (BlueSG, GetGo) before committing to COE. We use car-sharing for weekend errands and Grab on weekdays. Total cost is a fraction of ownership and we skip parking and maintenance entirely.

Uncle Chua Retiree · Answer

We stayed car-lite: no car, but we splurge on Grab guilt-free with the money we save. Works out way cheaper than ownership and no COE heartache. The car-seat Grab options and family MRT trips cover us. Only tough during the newborn phase honestly.

With COE so high, is owning a car even worth it for a young family?

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