Getting a new car

[seeker112]

Hey guys, I am a Year 2 uni student in mainland Penang studying far away from my home state. My family only has one car so i cant drive it to my uni. I work part time on weekends as I have to support myself and I get no allowance from my family (B40 background so not well off). Not having a car is really inconvenient for me as this means I would have to rely on public bus (their bus routes has so many stops so it is very slow - for context, a mere 10km distance from place A to B would take me around 40 mins to 1 hour average using bus and dont even mention the bus schedule 40 - 60 mins per bus). I am also not a huge fan of ehailing services like Grab/AirAsia/Indrive etc as i feel like im paying alot just to go to a certain place and then have to pay for trip back also (roughly RM10 one way?)

I have been thinking of getting a car so that

• Have more opportunities for work (instead of just working promoter jobs which is typical part time for students, I can apply for roving jobs which pays higher usually ... plus my uni has something called student cab where students can offer to drive other students to locations for a fee - basically Grab but without getting sucked of commision)
• Able to drive to travel around and explore places. Having no car really restricts such activities.

Been thinking of getting the new Axia E (RM22000) and from what i know, after booking the car still takes around 6-12 months for it to arrive due to long waiting line. I will be going for my internship around this time next year so would also need a car to get to work (dont feel like its good to still rely on public transport solely when i get internship or a full time job in future)

Have also thought of getting a secondhand car but my family disagree strongly because they said repair cost for secondhand cars are not worth it, if unlucky the car may have serious issues. Been looking at Saga (around RM8-10k) or Viva (6k-8k).

My concern is the maintainence cost, fuel efficiency and reliability. For loan if new car, i would ask my family member to apply since I do not have pay slips yet and I will pay the monthly instalments myself ... else secondhand would be cash i guess. I have calculated the cost for Axia E and it is manageable still with roughly RM300+ monthly (loan 5 years at 3.5% rate [pls advise me the current rate if im wrong] if i put RM5000 as downpayment. Also, Axia E has low specs so no radio, central locking and lousy rims. Would probably install tablet + camera , central locking and get better rims + tyres which would set me back around RM1000 + RM600?( not sure about central lock price) + rims and tyres (RM600 i guess)

Is it better if I get the new Axia E or a secondhand car or would you guys advise to not get a car at all given my circumstances ? I do have some money saved up over the years of working part time.

Also, if I opt for new car with loan, should I put a huge downpayment AND get a loan for longer years (3 or 5 years) ? My logic is if loan interest rate is lower than current safe investement rates (FD/ASM/Versa Cash) i could leverage the money and use current cash to gain more profits in long run.

TLDR; Uni student thinking of buy car? New Axia E or secondhand or dont buy at all better?

 

[interneternal]

@seeker112 Why not get a motor first though? Not sure if getting a car when you're not working yet is the best idea.

 

[schrute]

@interneternal If even more extreme a bicycle

 

[tctruongson]

@schrute If to the max, bus 11

 

[seeker112]

@interneternal Motor is not possible, my family strongly oppose as there is a saying "Skin cover skeleton", rather pay more and feel safer on the road even if it is an old car with no safety features at least still has a shell to protect myself

 

[conningns]

@seeker112 My suggestion would be to get a second hand/used car, and the main reason is cost.

Buying a used car is significantly cheaper than a brand new Axia E. Say you buy the best used car you can afford @ RM10k, that is still RN12k less than a brand new Axia. I'm not by any means suggesting that a RM10k will never go wrong, but if it does, it won't take RN12k to fix. Bring a friend who knows about cars to inspect the car before you buy. As long as it hasn't been in a major crash or flood, it should be relatively easy to maintain. There are many ways to tell if the car has been in a major crash or flood0. Just Google how to tell.

If you do decide to buy a used car, here are a few suggestions. Before agreeing to buy the car, ask the dealer/seller to send the car for service first. Dealers usually have a workshop they can send their cars for repair/service work before they put the car up for sale. Therefore, they are usually able to service cars for cheap. Make sure the dealer gets this done, and request for proof that this has been done (ie: receipts, check dip stick etc).

Set aside around RM2k - 2.5k to return the car to perfect mechanical condition. Dealers will usually repaint or touch up any major scratches or dents, so it's easier for them to sell the car. Therefore you don't really have to fork money out for that. But underneath the skin is a different issue. I've bought many used cars to date, and usually, these are the things that require replacing.
1) Brake pads and brake discs (RM3 - 400)
2) Absorbers (RM6 - 700)
3) Tyres (RM800 - RM1000)
4) Just for peace of mind, replace the transmission fluid and coolant fluid. (RM1 - 200).
5) Engine mounts, suspension arms, bushings (RM6 - 800)

You may think that this is unnecessary cost, and to a certain extend, it is. But assuming all the above needs replacing, you'll still be saving money. Plus even if you buy the RM22k Axia, you'll still have to fork out money for radio, nicer rims etc.

Lastly, in a few years when you're working and all your friends/colleagues are driving nicer cars, you'll be tempted to sell and upgrade. Let's say that the cars have depreciated 50% by then, you would've lost RM11k on the Axia vs RM5k on a used car. Just additional food for thought.

 

[seeker112]

@conningns Thanks for the insight about the costs for repairing old car, really helpful. These are also what is stopping me from buying old cars as my family used to have a 22 yrs old Iswara sold 2 years ago for cheap as always had minor problems here and there and the repair cost really adds up over time. Usually when repair, OEM / recon parts are cheaper but dont really last long and same problem happens again.

 

[iluvjesus84]

@seeker112 Perhaps you can consider buying a second hand 2014 myvi? Those go for below 22k.

2014 so you can technically still qualify for a hp loan.

 

[seeker112]

@iluvjesus84 May i know what is a hp loan?

 

[iluvjesus84]

@seeker112 Hire purchase loan aka a loan from the bank to buy your car.

For second hand vehicles, it will need to be less than 10 years old. This is prerequisite, although there are some exceptions. Income is also a factor of course.

 

[gadds2000]

@seeker112 I don't know, I think you should wait till you get a permanent job/graduate uni...maybe try car rental apps like mycar to get around?

 

[seeker112]

@gadds2000 My uni do have students offering such services they range from RM10-20 per hour but impose minimum 4 hours usually so thats around RM40-80 plus I would have to refill the used petrol . Dont feel like its worth it if i use this service everyday unless that day really have outing or smtg that requires a car. Car rental apps are even more expensive from what I saw on Socar last time.

 

[fiddlefan]

@seeker112 second hand car can be very cost effective if you can make sure you don't get those flooded or heavily damaged car.

my family got me a 9-year-old proton saga aeroback back when I started working for like 8k. Used it for like 5-6 years before I decided to get a new car - car was still okay, just wanted auto shift for the traffic jam (clutch sucks).

getting a new Perodua car also means you need to commit to their maintenance schedule (like 6 months once, each time RM260+) or they can disqualify you from their warranty.

 

[pono]

@fiddlefan Yeah, I think secondhand car is the best bet for OP. Very cost effective if we get a good one. My husband parents bought him secondhand perodua myvi 2007 for 12k in 2017. Still use it until today because we doesn't need an upgrade yet.

 

[seeker112]

@fiddlefan Well, actually kinda skeptical about used car as my family used to have a 22 yrs old Iswara (which i sold on Carousel 2 yrs ago for RM1200). Always have minor issues (starter, gear, aircon etc) here and there and my mom decided that its no longer cost effective to keep it.

So was weighing between a new Axia (dont mind driving stick as the Iswara was manual as well) where i do not have to worry about breakdowns for 3-5 years (minus the maintainance you mentioned 6 months once, each time RM260+ ... i feel still okay compared to if old car always here there rosak)

 

[fiddlefan]

@seeker112 those are valid concerns, it all comes down to whether you are able to get a reliable second hand car at a good price.

 

[varden]

@seeker112 Just make sure u have money Incase if the car has any issue, u never know when this will happen

 

[naturalisbest]

@seeker112 I think you are in the comfort zone. Get a motorbike or scooter for use. When I qualified way back in 1973, did odd jobs and saved hard and booked a property while all my friends had cars. Travelled by bus and walked a lot.Now aged 77 and am enjoying good rental. Never bought a new car until today. Still use a 230 E car which is 38 years old. Hard work, perseverance and good investment can make u rich. Any advice. Travelled and worked 16 years worldwide.
Believe in utility. Save hard and invest and you will never look back. Car can be a liability and needs maintenance and monthly expenses and loan payment.
First, save 6 months pay for emergency use.
Work hard, save well and invest for first 10 years and you will be on road to success.
Regards

 

[seeker112]

@naturalisbest Respect ! I am also thinking of applying for those government built house for first time owners like PRIMA those kind but cant apply now as i do not have 3 months salary slip. I totally understand that a car is a liability. Once i get a new car OTR, value already dropped 20% .

But a motor/scooter is out of the question, my family strongly oppose as there is a saying "Skin cover skeleton", rather pay more and feel safer on the road even if it is an old car with no safety features at least still has a shell to protect myself.

Been using the bus for like 5 yrs now and I am at the point where feel like my time is more precious than energy - as in with a car, i can be more productive in a way

 

[mutereality]

@seeker112 Student cab + roving jobs is a game changer in your case. I'd get a car that is bigger than Axia for this purpose.

As for new or second hand, now that depends on how familiar you are with car maintenance and inner workings. I'd steer away from that new Axia as some key safety features are missing.

All the best in your decision!