Deciding on how much to spend on a new car can be difficult. Not only are you juggling between various bills and expenditures, you’re adding one more to balance.
How Much Should You Spend on a New Car?
A variety of sources seem to agree on 15%, and that is no small chunk of your monthly earnings. This number can rise up to 1/3 in some circles, arguing you have to consider road tax and servicing, not to mention upkeep costs like servicing, spare parts, and fuel.
If you bring home a net income of RM3,000. 1/3 of your monthly car payment should be RM1,000. If you are frugal, a Myvi with a monthly payment of RM800 might be suitable. That way you still have RM200 a month for emergency repairs, road tax, and insurance.
And that is not considering the initial down payment you have to make! Bigger cars like an X70 will be out of reach for those with lower incomes unless they save a substantial portion of their income for a few years.
What if we told you there is a solution to pay low loans and guarantee your cars value? Don’t believe us? We have collaborated with DRB HICOM and Bank Muamalat for Step Up Auto Financing-i programme!
What Is Step Up Auto Financing-i?
Step Up Auto Financing-i is a flexible loan payment plan that allows customers flexibility when owning cars. Car loan repayments can be up to 33% lower and you can opt to sell your car to myTukar with Guaranteed Buy Back Value!
What Is Guaranteed Buy Back Value?
As the owner of the car, you can choose if you want to sell the car, and to whom. What myTukar does is provide a fixed value for the car at the market rate three years from when the car was bought. So after three years of owning the car, you can choose to sell it to myTukar at the predetermined price. Should the car be valued higher than the agreed price, customers can opt for the higher valuation.
So how does this differ from a regular loan? Glad you asked.
With Step Up Auto Financing-i provides flexible loan payments 13% – 33% lower in monthly repayments! myTukar will also provide guaranteed buy back value for the car when it is three years old. In this way, the customer can sell the car to myTukar three years after buying the car at the market rate when the car was bought. Should the car be valued higher than the agreed price, customers can opt for the higher valuation.
|Step Up Auto Financing-i||Standard Car Loan|
|Can transition into long-term investment||Long-term investment|
|Fixed buy back value on the 3rd year||No fixed buy back value|
|Flexible loans up to 33% lower||Fixed loans|
So in brief, you pay less in installments, and have the chance to sell the car in 3 years at a guaranteed price! This allows you flexibility, without having to save a lot of money before buying the car or put away up to a third of your salary for loan payments and emergencies.
For more information on Step Up Auto Financing, visit Bank Muamalat’s website or call 03-2600 5500.
What If I Still Can’t Afford a Car?
In that case, you can check out myTukar. myTukar is Malaysia’s fastest frowing digital used car platform that sells affordable and certified used cars.