Reality check: the true cost of owning a car
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?
All the pros and cons to consider when deciding on your next car.
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.
CARSOME offers long-term savings with special bundle service packages.
Why choose CARSOME-certified cars?
Apart from the guarantee of quality, and the hassle-free process of choosing and buying the car that meets your budget and needs, CARSOME also offers other benefits such as bundle service packages, deals and special promotions that give you long-term savings.
They also offer exceptional facilities and support; from obtaining car insurance to comprehensive finance options – helping you to secure a loan. Their processes are easy to navigate and stress-free as they handle all the paperwork for you too.
CARSOME also offers a five-day money-back guarantee and fixed pricing with no hidden fees, so you have that rather important added benefit – peace of mind.
Now that you've weighed the options, considered the pros and cons, and made up your mind to choose a CARSOME-certified pre-owned car, visit CARSOME now.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Abolishing student loans doable, Shafie Apdal insists
Warisan president Shafie Apdal said his pledge is not a political gimmick. (Facebook pic) PETALING JAYA : Warisan president Shafie Apdal has defended his promise to write off outstanding student loans for Sabahans if his party forms the government after the upcoming state election. The former Sabah chief minister said his pledge was not a political gimmick and that it was financially doable, Malaysiakini reported. 'In 2019, I paid RM1 billion of debts left by BN,' he was quoted as saying, referring to the time the state government he led settled the federal government's bond ahead of its maturity date. 'If I can pay BN's debts, why can't we pay the debts of our students?' Shafie said the pledge could be realised by channelling revenue from timber concessions into Yayasan Sabah for education. He claimed to know which timber concessions can be set aside so the money goes to Yayasan Sabah. 'Then Yayasan Sabah can use it to pay off our children's debts,' he said. On Tuesday, a youth NGO dismissed Warisan's pledge as mere rhetoric. The Sabah Youth Council said even if Warisan kept its promise, the financial implications would be huge, and would impact other sectors in terms of funding. Its president, Abqaree Fawwaz Abekan, said it would be more practical for Warisan to subsidise the loans by 50%, especially for the needy.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Masidi calls out Shafie's RM1bil debt settlement boast
Sabah finance minister Masidi Manjun said by the time the Warisan administration took office in 2018, most of the funds needed for repayment had already been secured. (Bernama pic) PETALING JAYA : Sabah finance minister Masidi Manjun has hit out at Warisan president Shafie Apdal for claiming that his administration had settled a RM1 billion debt left by the previous government in 2019. Masidi said Shafie's claim was aimed at showing that his administration was good at managing government finances, 'but the facts speak for themselves'. Masidi, who is also the Gabungan Rakyat Sabah secretary-general, said the federal bond in question was issued in December 2014 during the Barisan Nasional-led state administration. He said one of the conditions imposed by the central bank for the issuance of the bond was that the state government must set up a dedicated sinking fund to ensure full repayment of the debt upon maturity. 'This was a safeguard to prevent the repayment from becoming a huge financial burden on the state's finances,' he said in a statement. Masidi said that under the terms of the bond, the state government needed to place RM200 million into the sinking fund each year for five years, until 2019. By the time the Warisan administration took office in 2018, he said, most of the funds needed for repayment had already been secured. He said that in the following year, RM1 billion was already in the sinking fund, which allowed the state government to make a one-off bullet payment being full settlement of the bond debt. 'Therefore, it is not accurate to suggest that this repayment was the result of any special action by the Warisan government. 'The payment was the outcome of prudent financial planning put in place by the previous administration years before the bond matured,' he said. Yesterday, Shafie defended his promise to write off outstanding student loans for Sabahans if Warisan forms the government after the upcoming state election. Responding to a youth NGO's claim that the pledge was mere rhetoric, the former Sabah chief minister said his promise was not a political gimmick and that it was financially doable. 'In 2019, I paid RM1 billion of debts left by BN,' he was quoted as saying. 'If I can pay BN's debts, why can't we pay the debts of our students?'
Free Malaysia Today
3 hours ago
- Free Malaysia Today
Developer harassing us for redevelopment consent, claim residents
The residents of the Kuchai Entrepreneurs Park flats said the developer had approached them directly, in breach of the Strata Management Act 2013. KUALA LUMPUR : Residents of the Kuchai Entrepreneurs Park flats are urging the government to intervene and stop what they claim is harassment by a developer pushing for the area's redevelopment under the proposed Urban Renewal Act (URA). Nasrun Ismail, a member of the residents' action committee, claimed that the developer was bypassing the flats' management corporation and approaching residents directly for consent without proper explanation, in breach of the Strata Management Act 2013. 'They sent us letters and asked whether we agree or not. Then, they set a date for us to reply,' he told reporters after a public briefing at the flats today. FMT is withholding the name of the developer pending a response. Nasrun alleged that some residents were offered RM100 or RM200 to support the redevelopment, which he described as a form of bribery. He said some visits took place at night, causing concern among the residents. 'We will request our management corporation to take any necessary action, including lodging a police report and obtaining a court order, as the developer has violated the Strata Management Act,' he said. He also urged the government to prioritise rejuvenation over redevelopment, especially for low-cost and heritage housing, warning that a shift to condominium living would impose higher maintenance fees, sinking funds, and other hidden costs on residents. Spearheaded by the housing and local government ministry, the URA seeks to lower the threshold of strata owner consent to 80% for buildings under 30 years old, 75% for those over 30 years old, and 51% for abandoned properties. The bill is expected to be tabled in Parliament this month. The Kuchai Entrepreneurs Park flats consist of five blocks, with a total of 480 housing units and 20 shoplots. The flats' leasehold tenure is expected to expire in 2081.
