Reality check: the true cost of owning a car
Published on: Friday, May 02, 2025
Published on: Fri, May 02, 2025
By: FMT Reporters Text Size: What's the real price of owning a car? Are you ready for the responsibility? PETALING JAYA: Been eyeing that dream car? Much like having a baby, owning a car is a big responsibility. It's not just about driving one, it's also about taking care of it – and that requires money and time. So, if you're thinking of buying a car, it's best to prepare yourself before taking on the financial commitment. Ask yourself: 'What's better for me, new or pre-owned? What can I afford to buy and maintain? What's the real cost of owning a car?' First, what to choose – new or pre-owned? Cars are expensive in Malaysia, and a survey by CARSOME shows that Malaysians – especially middle and lower-income groups, prefer buying a used vehicle as opposed to a new one. So, consider these seven key points: price and depreciation; safety and insurance; waiting time; maintenance costs; warranty; down payment; and range of choices. Let's take a B-segment sedan/hatchback of average price and examine its loan repayment based on the following: a chosen loan tenure; insurance, maintenance costs, fuel cost, and other factors. Excludes loan repayment beyond five years. Does not include depreciation (resale value impact).
Above estimated figures (based on common assumptions for a non-national B-segment car priced around RM90,000) provide a general idea of cost of ownership over a five-year period. Actual running costs may vary depending on the vehicle model, loan terms, maintenance habits, driving style, and fuel price fluctuations. New cars depreciate in value very fast but they function well, require less maintenance, and last longer than pre-owned cars. Used cars, however, are much more affordable, you may not even require a loan, and probably save you money in the long run. Then there's the question of availability. Do you want your car immediately, or are you willing to wait for your new one, and for how long? CARSOME's co-founder and chief executive officer (CEO) Eric Cheng expects a short- to medium-term shortage of new car supplies or delays in new car deliveries due to the global shortage of car parts coupled with disruptions to car assembly and manufacturing plants locally. 'As such, the used car industry is in a good position for growth as there is no waiting time for car delivery,' he said. CARSOME's research also found that the popularity of online used car selling platforms has increased. 'With the rising cost of ownership many buyers are shifting towards fuel-efficient and reliable second-hand vehicles,' Cheng added. So, what about costs? Used cars may be more affordable than new cars, but how reliable are they? In this case, CARSOME-certified cars offer a good middle ground between price and quality, with great benefits like excellent warranty plans and thorough inspections, assuring high standards. 'Our end-to-end buying journey takes away the concerns which are common in a traditional used car buying experience. CARSOME Certified is the new standard for buying pre-owned cars backed up by our 175-point inspection together with our CARSOME Certified Refurbishment Process,' says CARSOME.
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