You’ve decided it’s time to stop being a Grab VIP and actually get your own set of wheels? Congrats!
But before you sign a 9-year loan, here are 5 things you must know before buying your first car in Malaysia.
Depreciation Hits Hard and Fast
Unlike that vintage 1980s designer handbag, your new car loses value the second you drive off.
On average, it drops 15% – 35% within the first year, potentially hitting 50% depreciation by year five.
That means if you ‘invest’ RM 60,000 now, that same investment will amount to only about RM 30,000 in just a few years.
So, what should you do if you still need a car?
Think resale: choose models known for holding value – stick with popular, reliable brands to soften the depreciation blow.
Insurance: Youth Isn’t Always Wild and Free
Fun fact: As a first-time driver, expect higher insurance costs – insurers see you as high risk.
But you won’t always be in that group, and if you stay claims-free, your No-Claim Discount (NCD) can climb up to 55% after several years.
We’ll let you in on a smart move.
Compare quotes using platforms like BJAK, which bundles up insurers and helps you spot deals quickly.
Cost of Ownership > On-the-Road Price
Loans might make monthly payments ‘digestible’ – but there’s way more: road tax, fuel, insurance, maintenance, summonses (let’s hope not), parking, and oil changes.
These costs add up fast.
Think of the full picture, not just the showroom price.
Used Car Advantage
That new-car scent is tempting, but remember the car depreciation truth?
Use that to your advantage!
Used cars can be a real bargain if they’re well-maintained – just make sure they come with full service logs and a clean history.
Find reputable second-hand car dealers, and try to avoid liaising directly with that uncle who says, “Only ever drove to pasar on Sundays,” and makes “gentle lady driver” claims.
Maintenance Isn’t Optional – EVs Included
Skipping oil changes or letting dents slide? That is an absolute no.
Ensure regular servicing, cleaning, and mileage of the car.
But now, you must be thinking – what about electric cars?
They’re not that much cheaper and would hike your expenses in a different way.
Plus, it’s important to check if charging stations can be set up in your home or exist near you or your workplace.
Your First Car = Your First Adult Flex
Looks matter for the feed, but your first car isn’t just a selfie magnet – it’s a deal you’ll live with for years.
Be honest with your capacity!
Check depreciation value, compare insurance, maintain your car like your life depends on it, and choose something that fits your bank account – not just your vibe.