When We Should Buy a New Car?
I have notice that keep on changing new car has become a trend of todayís life in city. People keep on switching to new car for no reason. It seems like car has become a way for people to express and show their status. Every year there are so many new car models coming up. So they keep on changing the car whenever they saw some new models that they like.
I had even heard people saying this: Since I need to pay for my installment every month, then why don’t I switch to a better new car?í It seems like paying car installment has become part of people’s routine life where if they donít pay for the installment, they donít know what to do with the money. Maybe people have forgot that they donít have to pay for car installment if they donít want to.
I know that I may offend a lot of people by saying that buying a new car is not necessary. However what I am saying is not that you cannot buy a new car. But when you wanted to buy a new car, think about why do you want to buy it. Is it neccesary? Do you want to buy it because you need it? Or you want to buy it simply because you wanted to show off to people that you are rich. Do you buy the car to boost up your ego?
For me, I only buy a car when it is needed. When I say needed, I mean that I really need the car. Not for no reason, not for showing off purpose. If my house is located at an area where I have no access to public transports, then I will consider to buy a car. If my old car has too many problems, then I will consider to switch to a new car.
Currently I have a car of 17+ years old. I have no intention to change a new car right now as my current car is still in good condition. I plan to use the car for at least 10 years if the conditions are ok. Actually the car is currently used on the weekend only. I am actually taking public transport (LRT) to work as my office and my home were just beside the LRT line. I have no intention to buy a second car although there is no problem in getting one financially.
With this I can save at least RM1000 per month. I would rather leverage this RM1000 per month for other purpose as investment. Why do I want to increase my expense to somewhere that I don’t really need. I can even use the extra money to do some investment.
Currently I have a fully paid Korean car aged 10 years old. I am based outside of Klang Valley right now, so rail transport is out of question. It is still doing well except the slightly higher overall maintenance cost needed. But not high enough to make me trade it in to a newer car, but it is something that I am planning for in this next 1-2 years. I enjoy the freedom not having to pay for car installment every months and want too stretch it as long as possible.
I believe it is a good time to buy a car right now. There are a lot of good choices at good prices for the models that I am looking for. Below are the criteria that I am looking for:
- Efficient fuel consumption
- Have keyless entry & start button
- Have cruise control (prefer adaptive or L2 self driving)
- Good economics for at least 10 years usage
I am not a car freak nor enjoy driving too much, so my criteria are simple. If it’s up to me, I will definitely choose a Myvi+driver over a Mercedes anytime. After all, it cost almost the same. But both have a lot of hidden cost and not an option that I feel I should explore now.
Right now below are the models that I am eyeing right now and some commentaries:
a) 3 years or less Hyundai Ioniq (HEV+)
I have been eyeing this model for quite long, since it was first introduced in Malaysia. But I believe they (the dealers) have stopped selling the new version of the car. So spare parts for the later years of my usage will be hard. I like it because it is a hybrid car. It is the best looking Hybrid car out there (others are just hideous) with a lot of features. But the reason I am still undecided on it because of exactly the same reason. Right now the fuel price is not that high, so the savings from higher Fuel Efficiency is not enough to tip me over. Plus there is always cost for hybrid system or battery replacement that I need to be prepared for.
b) 3 years or less Minis
This is the model that I have always fantasized about driving in, but I know there is no way my logic will allow me to purchase it. Now circumstances has provided me with small justification, how this model fit in my persona. The problem is, the cost is at the higher end of my budget. I can still make it comfortably, but having used to not paying anything for car installment, this will be a significant commitment to my monthly cashflow.
Not to mention that, fuel consumption for this model will be astronomical. (I may also need to buy 2nd car to optimize)
Beside the monthly commitment, the notoriety of maintenance required for a continental car also made this a difficult choice for me. It is a long shot as it goes against my financial principle, but it’s my fantasy. So it’s still making the shortlist. Just in case.
c) Perodua Ativa
This is the safe and the most logical choice. It has everything that I want and need. Except for (maybe) size. I am not sure of that because I haven’t test drive it yet. Will definitely go for a test drive, closer to when I will make my purchasing decision. If I go now, I am afraid I will be guilt-trapped to buy one earlier than when I should.
Also ran (models that I have also considered):
Honda HRV, X50 & x70- cool, but Ativa has a lot more features at cheaper price.
Mazda 3 – 2.0 engine (concern on FE)
Toyota Altis – Too safe, not exciting
Civic – Too mainstream
City/Vios/Yaris – Too mainstream and I am looking to upgrade from this category