Many want their own car. Today, the car is seen as a vehicle that is the need of everyone to make it easier for us to move here and there.
However, owning a car is not as easy as you might think. It requires careful financial preparation to pay monthly installments, preparation in case the car faces problems that need to be repaired, as well as other related matters.
Cars are not just about paying monthly installments. Here are 3 money wise tips for you who want to buy a car.
#1. Cash Purchases
Pictures are just decorations
It may seem to take a long time, however it can prevent you from paying monthly installments.
The logic might just be able to afford a used car. There is nothing wrong if you use a used car. You just have to have the knowledge to choose the right car.
In fact, it is more profitable because there is no need to bear the burden of debt every month just for a car that is depreciating from year to year.
This car payment installment money can be used as savings or even to collect a deposit to buy a house. Calm heart, no debt burden and can upgrade the car whenever we like.
#2. High Deposit
If you notice, there are a lot of ads that offer the purchase of cars without a deposit. Don’t be easily swayed by this offer as a no -deposit purchase will increase the monthly payment installments.
You can use these second tips if you want to buy a high value car. Let's say you are interested in buying a car worth RM50,000 without a deposit, regardless of how much interest you have to pay and the monthly installment.
Compare that if you provide a deposit of 20% or higher, try to calculate how much savings in terms of interest and low monthly installments.
Indirectly this can reduce the bank's profits if you choose to buy a car by paying a high deposit.
#3. Buy a Car Worth a Year's Salary
If your salary is RM3,000 a month, then a year it is RM36,000. So look for a car that costs RM36,000.
Where is it? There are actually many valuable cars in this price range.
The purpose of us buying a car that costs a year’s salary is to make sure you can really afford to pay the monthly installments as well as other related costs.
These costs include fuel, tolls, parking, summons, road tax, car takaful, engine oil, gear oil, tires and so on.
