Buying Car in Malaysia is the Most Financial Burden?

A friend of mine bought a car in 1997 for RM90,000 and eventually the value depreciated to RM15,000 in 2010. So RM75,000 divided by 13 years of usage is about RM5,770 per year. Divide it further by 365 days is roughly RM15 per day.

Buying car in Malaysia

I believe that many could be smart enough to see the flaw in the above calculation. The car resell value becomes lower as time goes. Not only that, I still haven’t included car loan in the above calculation. The actual total price that she paid is more than RM100,000.

Based on the survey that I’ve done, for every imported car that you buy in Malaysia, you need to pay more than double the car’s value, so you lost half of your money instantly!!! This is because of government increases the car price in order to protect our local car.

Thus, buying car in Malaysia is the most burdens in our personal finance planning. No matter how little your income is, if you do not own a car, you still can have a good savings. And no matter how rich you are, the cars you own will burning big holes in your pocket, an easily 10%-30% depreciation rate.

In my opinion, if you think owning car is a must, then try paying in the smartest way.

How to Buy Car in Malaysia?

Idea #1: Try your best to buy car with CASH only
Idea #2: Try to get the minimal loan amount and shortest loan tenure as you can.
Idea #3: Try to get limited edition popular car. The value may appreciate a bit or may not depreciate much.

9 thoughts on “Buying Car in Malaysia is the Most Financial Burden?”

  1. If what you say is true, then the solution is to buy a used car older than 5 years and pay cash. This way the original owner has already paid for the critical part of depreciation and other cost. By your writing a new car RM100,000 can be bought for RM15,000 after 13 years.

  2. Idea 1: I know someone who bought a car in cash, yet tis is for the cheapest car on the market.
    Idea 2: Not necessarily limited edition – cars that hold their value are popular ones not in production anymore – fyi for Naza Bestari/ Peugeot 206, some distributors have marked it up in price and selling it now, there is still demand.

  3. What’s wrong with driving a Proton/Myvi/Naza?
    I don’t understand how people who earn less than 5k yet wanna drive Honda/Toyota/Suzuki/Mazda.

  4. it depends what car you’re buying because second hand cars comes with heavy maintenance and less protective in material used, however above are good points to consider

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