- yesterday
Everyone’s driving something fancy these days... electric vehicles, cars with smart assistants, or just that sleek leather interior that screams luxury. But the big question is: should you be buying a new car right now?
Category
🎵
MusicTranscript
00:00and then when i realized like i'm i'm paying a lot of money on interest yeah somehow social
00:04media pick up the algorithm spied on me and then spamming with me with like concerning videos like
00:08people advising like cars or liabilities and if i'm paying monthly something you know i want it
00:13to be the best i i do not want to buy and regret you know maybe should have taken the highest pack
00:18or anything like when we think about it it's like maybe five thousand extra but you know along the
00:23road that might be actually good yeah yeah yeah affordability wise general rule of thumb some
00:28people use that the price of the car should be your one year salary at max some people yes the
00:33cars within their one year salary but they have so many commitments they have to pay for their
00:37parents they have to pay for rent you know they have a few kids then you need to just tweak it to your
00:41budget what's up guys my name is emir and this is the money goal today i have tinesh back again with
00:51me tinesh what's up hello you can have the worst guy for financial advice but i'm back here let's go
00:58so um today's topic is going to be about buying cars right okay so the thing about me and cars is
01:05i have people around me that i am just starting to work just you know just settling down so people
01:09starting to buy cars yep i had also had the mindset you know get a car because you know that's what we
01:15all want a ride defines a guy okay so but you know when when i actually sat down with a
01:23agent sales agent and then we went through like all the car financial stuff you know how much the car
01:30costs yep the loan and then you know they give you a calculation of like if it's for nine years this
01:35is the amount of x amount of interest you're gonna pay yep and oh they actually share the interest with
01:40you um i think i made the agent do it okay okay okay okay i think i made made you do it but and then
01:46when i realized like i'm i'm paying a lot of money on interest yeah yeah and you know and then i
01:51started doing more research and then somehow social media picked up the algorithm spied on me and then
01:59started spamming with me with like concerning videos like people advising like cars or liabilities
02:04yeah over the year they they don't depreciate they don't really give you really value like and and you
02:11know i'm i'm currently using a a really old car okay very old car but it's it's still runs and
02:17you know everything's good everything's comfortable everything is safe but there's no loan to it okay
02:22that's good which which i'm i'm comfortable with yep but you know again like is is a car is a
02:31machine and then after a while it's gonna give up yeah and the cost of repairing is gonna be way more
02:36than you know it's gonna be high it's gonna be high right and you know i have a family i have
02:40a kid so a reliable car is way more important than you know yep all the other factors so eventually
02:49if or when i decided to get a car what should be the things and factors i have to look at
02:56you have to consider right okay but first of all i think your current car you said it's all no more
02:59loan and stuff but do you have to pay anything for repairs occasionally when my car gets its mood
03:05okay it's like this guy has too many bank money on his bank so let's do something but is it
03:10often do you know roughly like how much you've been spending a year a year i mean it's it's a
03:15malaysian car okay so i can promise you that it's not much okay that's good that's good okay because
03:21i have a friend who is in a similar situation to you and he's asking me as well whether he should
03:25buy a car but his situation is not a malaysian car i think it's a continental car or a japanese car
03:30old one and he thinks he's paying about five to ten thousand a year in repairs and i was telling
03:34him i think at that point just buy a new car i mean you may as well right but i think for you since
03:38um it's not so bad yet then technically you could just continue using that car right having said
03:45that i know that obviously i mean if you can afford a car uh comfortably then then you know
03:52by all means right you don't use a car forever until it gets so bad that you have to get another
03:57one if you can afford it then by all means you should get another car um okay so so what other
04:02things do you consider i think one is affordability obviously i think that's one thing you need to think
04:05about um when you were choosing your car how how did you sort of decide which one is for you all right
04:12so um the initial stage of it is you know you go for the most common car that people choose that will
04:19be a my ev okay yeah yeah yeah because you know um when you think about it the build is good and
04:25ready for money yep but again it's i wouldn't say it's the cheapest car mm-hmm yeah you could go
04:32i mean they're way more cheap up yeah yeah and then i think about what uh my needs okay you know
04:39for me i need my car to be a comfortable space okay and if i'm paying monthly something you know i
04:45want it to be the best okay i i do not want to buy and regret you know maybe i should have taken the
04:51highest pack or anything like you know that's true when we think about it it's like maybe five thousand
04:55extra but you know along the road that might be actually good it adds up yeah yeah yeah okay so but
05:01you decided based on what you think you could afford or were you just looking at cars that you
05:04liked first without thinking about affordability to be honest i just looked at my cars that i liked
05:08and went for it okay okay so what was the car you're looking for not the myvi um i assume
05:13i'm gonna be honest with you like i don't know i really wanted to get a honda okay a lot of people
05:19like a civic maybe a civic okay i feel like that's every uh i don't know every uh guy's dream oh yeah
05:25yeah i'm gonna get a honda civic i mean that's the sweet spot yeah yeah so i think i think first
05:30of all i think i agree with uh your part about you don't want to buy something that you don't really
05:36like uh and then regret it later down the line because cars are some are things that we will
05:40use for at least a quite a period of time unless you're super rich so you can just buy stuff i don't
05:44care about it right yeah um but at the same time you also don't want to overspend for sure right i think
05:48cars are one area that a lot of people tend to overspend i've seen a lot of ads uh or tiktok videos
05:54where you know these car salesmen they're like oh this is 60 000 car 2 000 salary you can afford it
05:59i think that's just crazy so affordability wise uh general rule of thumb uh some people use that
06:06the price of the car should be your one year salary at max right so if you earn 8 000 a month
06:12one year salary that's 96 yeah 96 000 right so that is general affordability um you don't really want to go
06:21more than that you can go less obviously if you wanted to yeah uh cars even though we like it and
06:27even though you know you want it to be nice you feel like ah just add a bit more that trap i fell
06:31for it before as well just add a bit more i can get to the next pack and then oh a bit more can get to
06:35the next pack and eventually it just spirals right and goes to a very high amount um but we don't want
06:40to get into that situation i think cars are really not worth stretching our budget for just because
06:46like you said you also know once you drive out of the showroom it's basically going to depreciate
06:50and 99 of cars or the cars that most people buy that we see on the road here they're going to drop
06:55in price for sure yeah if you cannot afford the loan right let's say after one year after six months
07:00you cannot afford the loan you decide to sell it you won't you have to pay you have to top up
07:04to to actually clear the loan yeah yeah like um i think obviously i saw a video
07:09um where they were talking about ev cars and how they depreciate and apparently they
07:15depreciate way bad than a traditional car yep where by the fifth year the car value is only
07:22like a quarter of what you paid yeah and if you decide to sell it on the fifth year you actually
07:28have to keep still paying the bank from the amount deducted from your car value exactly so you sell
07:34the car and then you have to top up more to clear the loan which is crazy like yep yep yep yep yeah
07:40i think for our traditional car you still hold some value where you could i probably could close the
07:45loan by the 50 i think if you sell the car yep but this is crazy like so exactly yeah so typically as
07:51well uh one reason that a lot of people like my v's and axia's is because low-end cars tend to have
07:56better resale value in terms of percentage of how much you paid before right uh i think my v i looked at
08:01it before second hand they were selling only like it seemed to be 20 30 percent of the retail price
08:07even though it's second hand which i think is really good for a car uh something people should
08:11consider la right i have a colleague actually it's a crazy story um but he bought one of the evs and in
08:17two years he lost half the value he lost half the value in two years which to me is a lot and half
08:21is about 80 000 ringgit yeah because each cars are not not cheap yeah exactly exactly they are
08:28pretty expensive yeah yeah yeah i'm assuming the maintenance is also quite high compared to a
08:33traditional car yeah actually i heard evs don't have service they don't yeah i don't know yeah yeah
08:39but the batteries and stuff they definitely can be very expensive to replace yeah i'm assuming like
08:44the batteries are not really replaceable at the moment with most models yeah yeah those are
08:51concerning things yep and you know um there are also questions from listeners okay so um there's a
08:58couple of questions okay okay sure let's have a look at that sure sure sure let's go so one of the
09:03listeners said this okay and you know um he or she wrote i was 24 and proud first job first paycheck and
09:12first thing i did was take out a car loan i didn't have much saved but i could have stopped to wait to
09:18relying on others for a while life felt good i finally had my own ride no more waiting for buses
09:24asking favors but then i lost my job that that's bad the car is almost in a stop petrol tolls maintenance
09:32all ended up i tried to hold on but after months of late payments simple sites and the bang came for
09:38the car you know the car made me feel independent until it took everything away question before commenting
09:46to a car loan is there simply a way to test if you're financially ready yep okay good question i
09:52think uh just like with most other things a car is even though we feel like it's a necessity in
10:00malaysia at the end of the day it's still luxury right at the end of the day it's still luxury for
10:04most people you can go for a bike if you really like don't have a choice right so you need to sort
10:10out your emergency funds first okay uh so this person lost their job which is why they cannot pay for
10:14their bills and stuff for the car which is exactly why you need an emergency fund you know we need
10:18an emergency fund of let's say six months so that in the event that things like this happen that we
10:23lose our car obviously we lose our job we can at least still pay for it for the next six months right
10:28um that's one thing another way that people can test whether they can afford a new car or even a
10:33new house is to make the monthly payments before you decide to buy so give you guys an example if let's
10:39say you want to buy the civic and the monthly payment is going to be a thousand five a month let's say
10:43right before you decide to buy the civic for six months or even a year depending how conservative
10:48you want to be take out thousand ringgit put it into a separate account every single month and see
10:53whether you can afford that comfortably or not if you can survive without that one thousand ringgit
10:57every month for six months for a year then yeah you can afford the civic yeah that's basically one
11:01thing that you can do that will be a really good practice yeah it gives you a taste of reality exactly
11:06and then you have that money that you've saved up you can either use it for the down payment or you can
11:10use it as your emergency fund right so this person said i didn't need a big car i just wanted one it
11:18looked good it felt powerful i convinced myself that i deserved it after all my hard work yeah you know
11:25big cars make you feel like a big man for sure but the truth was the monthly loan was bleeding me dry
11:33petrol alone took me half of my pay i had to borrow money just to fix the flat tire
11:38skipped my dentist appointments turned down plans with friends and even sold stuff online just to
11:44stay afloat eventually i sold the car at a loss and downsized everything in my life how do you figure
11:50out a car is realistically within your budget and not just a monthly loan but total cost of the
11:56ownership i think a lot of people do that they just think about the payment of the loan but they
12:02don't really think about the maintenance exactly or raw tax exactly so insurance and raw tax can be
12:07quite a lot especially when you want to buy that big boy car 2.0 3.0 yeah bigger cc bigger pay
12:13exactly exactly and then your insurance gets higher as well and everything yeah i think these are things
12:17that a lot of people don't consider uh especially when you have to change tires as well bigger car
12:21your tires are bigger like you said right um so that rule that i was telling you earlier about uh
12:26keeping it within your 12 month salary i think this one really applies right so the best way to know is
12:32you just take your salary multiply by 12 if the car is within that price you can afford it but again
12:37that's just a general rule of thumb some people they have more disposable income let's say you live
12:42with your parents and you don't have to pay for any rent right they cook for you food now obviously
12:45yeah you have a bigger disposable income if you think you can afford a more expensive car slightly
12:49then by all means some people yes the car's within their one year salary but they have so many
12:54commitments they have to pay for their parents they have to pay for rent you know they have a few
12:58kids then you need to just tweak it to your budget right but yeah i think like you said perfectly
13:03there are a lot of resources online that you can find out how much the true cost of ownership of a
13:07car is but i think generally a lot of people will know insurance road 10x maintenance can be quite
13:12expensive as well um tires like i said all these things you can just find online what you should
13:17consider take that into account divide it by 12 then you will know your real monthly cost of a car
13:23but my my best advice is don't stretch towards a car i really think that a lot of people make this
13:28mistake like like this person said right you just got a promotion you feel like you somehow
13:33deserve it right but they go way above their means honestly for me as well i did this for my first car
13:38so i bought an x50 um i think premium version or something it was 94 000 which i could afford i
13:44could afford but looking back um i shouldn't have spent that much on the car so i could afford this
13:50back then because i was leaving my parents and stuff uh now i can afford it comfortably but i do think
13:55it wasn't the right decision for me yeah yeah because you know the car is you know what you
14:00said it's a luxury exactly and you know when it comes to getting a return out of it yeah it's going
14:07to be a questionable thing exactly unless you use it to generate income but again bigger cars to use to
14:16generate income is going to cost you more to maintain the car exactly exactly so you know something that's
14:21comfortable for you for you to like for maintenance petrol consumption that gives you good mileage
14:27that's going to be the one that you know ideally i would choose guess yeah but also another thing
14:32about this uh viewer right they sacrifice like going out with your friends which i don't think makes
14:37sense right i don't think like in 10 years time you'll be like oh i regret not buying the car but
14:41you would definitely regret like because of the car you can't hang out with friends right you've got the
14:44car to move around but then exactly you can't go anywhere exactly exactly exactly so those are all the
14:50questions yeah that's all we got for for now okay we've covered all of it okay perfect thank you
14:56tinesh i really hope one day you get your civic maybe not today you don't have to rush for it
14:59maybe not a civic maybe beforey never know all right thanks so much tinesh it was nice talking
15:06to you i hope you guys enjoyed this episode see you guys in the next one
Recommended
22:41
6:55
3:21
3:22
21:48
11:17
22:28
3:32