I did wrote about how many newly-employed lost their money and worth to their first car. You can read that here.
A car is essential to the life of newly-employed in Malaysia, especially when they need a mode of transport to meet the demand of their job.
However, some consider it as status symbol and this is where the newly-employed went wrong. A new and shiny pseudo-Italian Japanese small sedan (can you guess what car it is? answer at the end of the article) will eats into your bank account quicker than you’ll imagine.
You’ll go broke in the end of the month. What’s to be proud of riding in style but have to eat instant noodle in the last few days of the month?
It had been a few month since the post and here are the few solutions I would like to suggest to newly-employed regarding getting their first car.
BUY A GOOD SECOND-HAND, OR THIRD, OR FOURTH
There are plenty of choices in the second-hand market. Seriously plenty.
Me myself was seriously considering a second-hand car when I was looking for replacement of my 7 years old vehicle 3 years ago.
Finding a bargain in second-hand market is not a hassle, but to find a good one will require some knowledge and work. Here’s the help on how to find a good second-hand car.
I’ll also write about how owning second-hand cars can saves you a lot of money and gains you invaluable knowledge about car ownership and maintenance.
BUY CHEAP, BUY BASIC
In case you really want to buy new, buy a cheap one first.
Every car models has cheapest and most basic variant.
Axia, for example, starts with a price of around RM25,000, but with the exclusion of a radio and other features such as styling and pretty drab interior, But, hey, you’ll only pays around RM200+ for your monthly instalments.
You can always add the radio unit later, very much according to your budget and could be better ones, and I bet you can live with this car without much hassle, too. Less toys, less things to go wrong. Another consideration could be the Proton Saga FLX SV, this one comes with a radio at RM33,XXX (pictured below is a promotional poster).
Else, you’ll need to buy the higher priced but with much more ‘luxuries’ and styles ones, at around RM10,000 more. But, at that price, you’ll be able to afford a much upmarket, much older (probably 2 years old), second-hand Myvi!
Plus, sometimes, there’s promotions to be waited and you’ll be surprised if you can get a much more well-equipped and safe cars like the Proton Iriz.
BUY DURING PROMOTIONS (AND DISCOUNTS)
Yes, these manufacturers, they projected sales and they produce.
Sometimes, they produced so much but they can’t sell, inventory piles up and they need to clear it. While most manufacturers doesn’t make money by selling cars (we’ll discuss this later), they makes a lot by servicing them, and also in spare parts sales later.
They need to sell cars for their future sustainability, sometimes at their loss.
So, good news everyone! (in Professor Farnsworth voice). There’ll be promotions and discounts. Car prices during these promotion can be as much as 5-7% lower than it’s initial price!
Quick tips on when the promotions or discounts usually comes: when the competitor of the brand have launched their new product or when it is at year end.
Sometimes, before festive seasons, too. You always hears the ‘Jom balik kampung bergaya dengan kereta baru’ ads, right?
BUY LAST YEAR’S STOCKS
Imagine it’s already 2016. But, some carmakers or most of them still have some inventory left from last year. They’ll usually sell it as ‘Last year’s stocks’.
How much cheaper can these cars be?
Sometimes, on top of the 5-7% lower than initial price, you’ll probably get 5% more out of it.
Let’s say the initial price is around RM55,000, you can end up buying it for only RM47,000-RM49,000! That’s a whole 10% down-payment worth of money!
Some dealers would also like to waive the down-payment for you. So, if the new year is around the corner, hang your ears around your closest dealership and start your action when the new year came. You’ll be surprised!
Your car should not be the one that will tarnish your CCRIS score (what is CCRIS score? Seriously, you need to ask this?). Save a lot by not letting your bank account(s) drained by their cost of ownership, in the name of bragging rights or status symbol. The money is better put into investments or keep in the safe.
Owh, the answer of the pseudo-Italian Japanese small sedan is…
The Mazda 2 Sedan.
An other way to survey for a car to choose, you can always rent it for a few days to get a better idea of how to live with it everyday.