Young people should think clearly before buying a car: 6 additional expenses that will be added after buying a car
Buying a car is actually quite easy. For example, you can buy a Perodua Axia for just over MYR20,000, and the minimum monthly installment payment is less than MYR500.
However, you must also consider before buying a car. In addition to the monthly installment payment, there are many other things that require you to spend money!
Defaulting on car loans is one of the reasons why most Malaysians go bankrupt every year. After buying a car, in addition to paying the car loan every month, you also have to pay these fees:
1. Gasoline
A car won’t run without gas, so gas is one of the items that must be spent. Gasoline costs can range from tens to hundreds of ringgit per month.
2. Car road tax
Car road tax must be paid every year. The price of car road tax depends on the region and the car’s engine capacity. The road tax in Peninsular Malaysia is more expensive than in Sarawak and Sabah. The higher the engine capacity (cc) of your car, the more expensive the road tax will be. If you buy a small car, such as an Axia, the road tax is only RM20, but if you buy a Hilux, the road tax is thousands of ringgit. There is a big difference!
3. Car insurance
The price of car insurance will depend on the price of your car and other items, and usually ranges from a few hundred to several thousand ringgit. When you first buy a car, the car insurance you must pay in the first year is the most expensive. If you don’t make a claim, it will become cheaper and cheaper. Generally, car insurance in the first few years costs thousands of ringgit (depending on the market value of your car).
4. Tolls and parking fees
When driving around, you have to pay when you pass a toll booth, and you also have to pay when you go to the parking lot of a shopping mall or park on the roadside. Don’t underestimate these few dollars, it adds up to a burden every month!
5. Regular warranty
When buying a new car, you must return to the car factory for regular maintenance according to the schedule, otherwise the warranty will be lost. Although when you buy a car, the car manufacturer will provide a maintenance-free period of several years, but it should be noted that most of the time, the cost of replacing black oil, lubricants, etc. will be paid by you yourself. Generally, the cost of each warranty replacement of consumables is a few hundred ringgit.
6. Other expenses
It is inevitable to encounter minor collisions when driving, and of course repair costs are inevitable. If you are unfortunate enough to encounter a tire rupture or the like, it will be a huge expense. In addition, you have to spend a lot of money on car accessories, including car wipers, cleaners, perfumes, etc. From time to time, the car has to be washed and waxed, which is another additional expense!
Therefore, buying a car is easy but maintaining a car is difficult. Before buying a car, you must think carefully, and don’t just consider the monthly installment payment of the car. The bigger or more expensive a car you buy, the higher the additional expenses that come with it, such as the more expensive car insurance and road tax you need to pay.
