4 Tips For College Graduates Considering Getting Their Own Cars

by StudyMalaysia.com on December 12, 2018 | Top Stories

4 Tips For College Graduates Considering Getting Their Own Cars - StudyMalaysia.com

Once you have graduated from college, buying a car in Malaysia is somewhat of a rite of passage today. All independent adults are expected to take on this step sometime in their life. It’s even considered unusual if you don’t have a car of your own.

No worries, we’ve got a few simple steps to guide you. Keep in mind that these are simple guidelines, not hard rules you must follow. Some situations may be exceptions to these steps.

Do your research

If you’re looking to buy a car, chances are, you already have an idea of one in mind. The local market makes us spoilt for choice when looking for one. As there are hundreds of options to get, you need to conduct research to get the right one.

Look into the different aspects of your transport:

Type of car – Sedan, hatchback, Sport Utility Vehicle (SUV), MPV, or Cross-over.
Number of passengers – Do you ferry passengers or commute alone?
Maintenance – Free service, yearly service fees, price and accessibility of spare parts.
Duration – How long do you plan to keep the car?
Resale value – How much would you get if you were to sell it?

Reading car forums will give you an idea of the experience driving the car and what the users face. You can also get useful information such as the best service centres to send your car to.

Plan a budget

The biggest factor in choosing a car is your budget. It is one step you don’t want to skip! If you have just graduated from college and entered the working world, go for a lower-priced car – you probably don’t want to burden yourself with an expensive loan.

For most of us, taking a car loan is a quick-fix to a budget. However, consider how much you can set aside for the monthly instalment. Try to keep a limit of 10% of your monthly pay to service a car loan. Any more than that and you are overspending.

Consider a second-hand model

Yes – a brand-new model would do great for bragging rights. The smell of the car, the polished shine as it rolls out the showroom. The number of likes on your Insta-story as you collect your car. But you can get a similar experience buying a used or pre-loved car while saving big bucks on your purchase.

As a car is more of a liability than an asset, the price of your car depreciates with time. Unless you own a classic or antique car, your car’s resale value goes down the minute you step inside it. This allows you to purchase the same car at a huge discount when bought second-hand.

However, do be very careful when shopping for a used car. You want to make sure it is still in considerably good condition before committing. Otherwise the amount of money you’ll put in to fix and replace will offset the lower price.

Get an experienced car owner to tag along

When considering any type of large purchase, it’s best to bring along an experienced buyer, especially a car. Often, sellers may give misleading advice or even outright tell a lie about the car. To avoid this, bring along a friend or relative who has purchased a car before.

Ask your dad or friend to come along when you meet the salesperson and have a look at the car with you. An experienced car-buyer can easily pinpoint mis-selling sales pitches. An experienced car-buyer will also give valuable advice along the way that will aid your ultimate decision.

But most importantly? Enjoy the process of buying a car. It’s your first car, have fun with it. Choose one that fits your personality and lifestyle while giving you the best experience – at a price you can afford.

This article was written by CompareHero.my, a site dedicated to increasing financial literacy and helping you save time and money by comparing credit cards, personal loans, and broadbands plans in Malaysia.