Congratulations on reaching the exciting milestone of buying your first car!
I know it's great to own a foreign car like Honda City, Toyota Vios, Suzuki Swift, or even BMW (with FAMA Bank - Father Mother Bank). Whatever it is, we all start somewhere and remember, it's a journey.
Being a fresh graduate with RM 2,800 (min salary) can be a daunting task to navigate the car buying process. But don't worry, here's something to guide you through the Top 5 Things to consider when making your first purchase.
- Affordability: Make sure the car you're considering is within your budget, taking into account the costs of insurance, fuel, parking, toll, tyres and maintenance. You can try "20/7/20" Rule - 20% Deposit, 7 Years Loan, 20% of your monthly salary.
- Fuel efficiency: As a new driver, this can be a pain in your pocket or worse, your bank account. Look into cars with technology which may help you with fuel efficiency like Eco, EEV, etc. You will definitely be able to save up a lot over the long run. Imagine RM 50 per month, that's RM 600 per year which you can invest and help you grow your wealth (Huat Ah!)
- Reliability: Look for a car that is known for its reliability and has a good track record for not breaking down often. There are brands out there with easily accessible spare parts like Proton, Perodua, Toyota, Honda, etc. Just ask your mechanic which car brands, models would be better and why.
- Safety features: At 18 years old, safety is an important consideration. Look for cars that have modern safety features such as airbags, anti-lock brakes, and stability control. Look into Autonomous Emergency Braking (AEB), it may be expensive but definitely will help you save up in the long run and worth it.
- Other cost (Insurance, Road Tax): Some cars may be more expensive to insure than others due to their make, model or age. Be sure to check the other cost before making a purchase. Instead of paying RM 360 (Road Tax) for 2.0 CC, go for 1.5 CC with only RM 120. That's 3 Times Lower! Oh, build your NCB too!
Remember, no point looking great with a branded car like BMW, Porsche but, suffering mentally due to the monthly instalment. Start with a simple car and slowly upgrade when you are able to. In the meantime, use the extra cash on hand to invest and grow your wealth by focusing on more assets.
Bonus, look into brands that offer you better resale value so that you can trade it or sell your car in the future. Perhaps, the king of road ???
