Malaysians have the privilege of choice when it comes to buying a car. The country has two national carmakers, Proton and Perodua, that offer vehicles at affordable price ranges. Entry-level cars such as the Proton Axia is a popular option among new drivers who are headed for university or their first jobs.
The number of registered vehicles at 33.3million in 2021 has surpassed the total population in the country which stands at 32.6million. Some Malaysians favour driving on a daily basis over other transportation methods because they can get to their destination directly in a private space of their own vehicle.
Buying A Car In Malaysia – Loan Tenure And Interest
For car buyers who opt for a loan, you can put down a minimum deposit of 10% of the car price. Then, car owners can pay for the rest of it through monthly instalments with interest for a period of up to nine years.
The interest charges of a car loan would vary depending on the loan product you signed with the bank. For instance, a check on Loanstreet shows that Bank Simpanan Nasional MyAuto offers a profit rate of 2.55% for a RM49,500 loan to be paid in seven years. Meanwhile, the RHB Vehicle Financing-i provides a RM49,500 loan with 4.1% interest over seven years.
On top of the monthly instalment, car owners will need to pay for maintenance, insurance, and road tax. The costs of these items will depend on the type of car you’re driving and frequency of usage.
The average driver in Malaysia drives 10,000km a year. According to Perodua’s website, maintenance for the Myvi 1.3cc amounts to an estimated RM176.80 at a mileage of 10,000km.
Car insurance costs for an average Malaysian driver is around RM1,100 a year. Malaysians renew road tax every year. The road tax rates range from RM20 to more than RM2,130 for private cars. The higher the cubic capacity (cc) of your car, the more road tax you pay.
Starter Cars Below RM40,000 – Perodua Axia, Perodua Bezza, Proton Saga
When you’re just starting out driving on the roads, you may not be too picky with the style or speed of the car. Perhaps you just need a vehicle to drive around your neighbourhood or around the city. A more compact starter car may be suitable for your daily routine.
The affordability of a car varies for different people depending on their existing financial responsibilities, the frequency in usage of the vehicle, and the maintenance costs incurred. A popular opinion is that one should keep their monthly car payments to 15% of their monthly take home salary, which serves as a mere guide.
The Perodua Axia, Perodua Bezza, and Proton Saga are entry-level cars priced below RM40,000.
The hatchback Perodua Axia is the cheapest car with a starting price from RM22,000. With a sporty design, the Axia comes in a few colours including Coral Blue, Lava Red, and Glittering Silver. The minimum downpayment is usually 10% of the car price. Using the car loan calculator from the Perodua website, a monthly instalment for the Axia is RM285 for a period of seven years with an interest of 3%. This amounts to 14.3% of the take home salary of RM2,000.
Perodua Bezza has a starting price of RM34,580. A monthly instalment for the car with the same conditions equals RM448 which is 14.9% of a RM3,000 salary. Meanwhile, Proton Saga is priced from RM34,800. This makes the monthly instalment for the car RM451.16 with similar loan terms – accounting for 14.6% of a monthly salary of RM3,100.
Hatchbacks, Compact SUV Between RM40,000 To RM60,000 – Perodua Myvi, Proton Iriz, Haval SUV
Hatchback cars have become quite trendy in the past few years with a sporty and compact design.
The Perodua Myvi, Proton Iriz, and Haval are hatchback cars priced between RM40,000 and RM60,000. The most affordable Proton Iriz costs RM42,800. The loan calculator from Proton shows that monthly instalments are RM510.22 over a seven-year period with 3% interest. This means that you will need to earn around RM3,400 to afford the Iriz whereby the monthly instalments are 15% of your salary.
The Perodua Myvi has a starting price of RM46,500 and with the same terms, means that the monthly instalments are RM603. To afford the Perodua Myvi, you will need a take home pay of RM4,000 every month where the instalment is 15% of your pay.
Meanwhile, China brand Haval offers a compact SUV for the price of RM59,648. The monthly instalments for the car with similar terms would amount to RM773.31, using the WapCar car loan calculator. You will need a monthly salary of around RM5,000 to purchase the vehicle.
Medium Cars Between RM60,000 To RM90,000 – Perodua Alza, Toyota Vios, Honda WR-V
With an upgrade to medium cars, driver and passengers can enjoy a larger space that may be essential for families or those who travel long distances often.
With a starting price of RM62,500, the Perodua Alza is a seven-seater MPV suited for family vacations. The monthly instalment for the vehicle is RM810 for a seven-year tenure and interest of 3%. You will need around RM5,400 monthly income to purchase the vehicle whereby the monthly payment accounts for 15% of your income.
Japanese carmaker Toyota offers the popular Vios model from the price of RM89,600. With a loan tenure of seven years and 3% interest, the car can be yours for a monthly payment of RM1,162. This means, you should have a salary of around RM7,800 to afford the vehicle.
The Honda WR-V is an SUV with a stylish design priced from RM89,900. The monthly instalment for a seven-year loan with 3% interest would be RM1,165.49. You will need to earn a monthly income of around RM7,800 to afford the Honda WR-V.
Cars Above RM100,000 – Mazda2, Isuzu D-Max, Volkswagen Tiguan Allspace
The luxurious looking Mazda2 sedan is available for purchase from RM108,670 on WapCar. With a loan tenure of seven years and interest charge of 3%, you will need to make a monthly payment of RM1,408. To afford the car, you will need to earn a monthly income of RM9,400.
The Isuzu D Max lets you explore all terrains from the price of RM106,400 as shown on WapCar. If you take up a seven-year loan with an interest of 3%, you will need to make a repayment of RM1,379 per month. To afford the vehicle, you would need to earn around RM9,200 every month.
If you’re looking for a family car with ample space, the Volkswagen Tiguan Allspace Life may be for you from RM165,990 according to WapCar. Taking up a loan of seven years with 3% interest, the monthly payments for the car would be RM2,151. You will need a monthly income of around RM14,340 to afford the vehicle.
Featured Image Credit: Perodua, Toyota Malaysia, Volkswagen Malaysia
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