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.
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.