Financing your first car
Tan Jee Yee | 31 Aug 2018 00:30
Some lessons are lessons you learn the hard way. Kamal Hashim would attest to that. The 29-year-old sales executive recounts his first car purchase four years ago, and how it made his life difficult.
He had just gotten married, and decided almost instantly that the first thing he and his wife need to have was a car. He already had enough saved for a downpayment, after all, and was certain his salary of RM3,500 then could easily allow him to afford the monthly instalments.
He purchased a brand new Toyota Vios for almost RM70,000, believing that it would be a good investment in the long run, even though his wife insisted that they could make do with a cheaper vehicle. “The resale value is better,” he told her.
Two years later, he realised that he didn’t account for several things. First was the wear-and-tear aspect of car ownership. A few minor accidents and general maintenance meant that he would have to dig into his savings to pay for them.
Adding that to the other car expenditures that include toll, parking and insurance, Kamal learned soon enough that he had overestimated his ability to repay them all. He would constantly have to withdraw from his savings to pay off the monthly instalments, and occasionally skip on repaying other bills in order to avoid defaulting on his car loan.
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