With the various new car made appearance in Malaysia in 2019, most of Malaysian are preparing themselves to own it. New car Malaysia such as Perodua Aruz, Proton X70, Mitsubishi Triton and many more car models have made their launches in 2019.
However, there are many responsibilities and the amount of money to own a car. In addition to monthly car loan instalments, you should also consider other expenses incurred by owning a car, including car insurance, road tax, and service and car maintenance.
Car service and maintenance are inevitable to keep your own safety and comfort, and it’s expensive. With the Sales and Service Tax (SST) last September, car prices, car-related products, and car services are expected to increase.
It’s hard to describe the feeling when you can finally buy a car using your own money. However, do not be too excited and in a hurry. Identify 5 things to know as a new car buyer so you will remain satisfied with the purchase in the future.
1. Buy a car that costs less than your annual income
When buying a car, the “1/3 of your bank” formula can cause you to get bankruptcy quickly, especially if your income is less than RM3,000 per month. Avoid using the formula; Instead, buy a car less than your annual income.
Suppose you earn RM3,000 a month and your annual income is RM36,000. The new car cost about RM23,000 to RM35,000 is the wisest choice.
By buying a cheap car that costs less than your annual income, you will have more money to pay for other items, such as gasoline, tolls, parking, insurance, road tax, and maintenance.
2. Monthly payment does not exceed 15% of your monthly income
Another formula you can use is to buy a car where the monthly installment is less than 15% of your monthly income. Based on the formula, if your monthly income is RM3,000, your monthly installment can not exceed RM450.
Example: Monthly income x15% = The maximum amount of monthly installment payment
3. Be careful with fraud
Honest dealer or car salesman can help you in the long run. Someone who focuses only on making a profit can damage you financially. When visiting a car dealership or showroom, do not believe in what the traders or salespeople say, especially if the things they promise are too good to be true.
Always be careful and do surveys to avoid being deceived. Make sure:
- The seller does not ask you to pay the deposit to his personal account. If asked to do so, look for another place.
- Sellers do not offer discounts or rebates at extremely low rates. Typically, the government will announce discounts and car rebates if there are so make sure you always check the existing newspapers and car parks.
- Interest rates are too low. The lowest interest rates for national cars were 2.9% while 2.7% for imported cars.
- Seller assured approval. Your bank officer can not even grant approval. The loan approval depends on your score and your life history. You can increase your credit worthiness and loan eligibility with good scores. Check out our handy tips to improve your credit score.
When buying a new car, always have these tips on top of your mind so that you won’t regret. While car price in Malaysia is having fair ups and downs in nearest future, we need to be at our wisest mind before make any decision so that we will have the satisfaction of having our first car.