Car-sharing is a better option for many people

In the past months, the newspapers had reported on the sharp drop in new car prices.

Many people, particularly the younger ones, rush to the car showrooms and sign on the dotted line to buy their dream car.

This dream may not last when the true cost of car ownership strikes home.

For instance, if you buy an off-peak Nissan with a 95% car loan repayable over 10 years, you have to pay a monthly instalment of around $350. Add road tax, insurance, maintenance, petrol and parking charges, the total cost jump to $600 to $700 a month.

This is not a small sum for a young person just starting out on his career and burdened with a 10-year financial commitment.

I suggest a better option. If your job does not require you to use a car, you can consider car-sharing.

NTUC Income operates a car-sharing scheme with 200 cars serving 5000 members. A member spends between $50 and $200 per month depending on their car usage. For some months, they spend nothing if they are overseas or have other lifestyle priorities.

A car-sharing member have nearly the same benefits as private car owners.

www.carcoop.com.sg