In 2014, there was a study on how it was cheaper to take an Uber than to own a car. While Uber is gone, the facts remain. We can still take a Grab nearly anywhere in the country. Yet in 2020, 529,434 cars were sold last year, down from 604,281 cars in 2019 solely because of the pandemic. This shows that despite the costs of buying and maintaining a car, people are still buying. So why do people still buy a new car for themselves?
The primary reason on everyone’s minds is safety. With the Covid-19 pandemic still ranging, many want to buy a car to reduce the chances of exposure to the deadly virus. In a survey conducted in January, 58% of the one thousand respondents say they plan to buy a car within one to six months.
Is there still a cost difference?
Assuming one travels roughly 1,000 kilometres a month and uses no other forms of transportation, and travels to one place and back home per day, we have a travel distance one way of 16 km.
Per the study titled Automotive Consumerism: A study of Car User’s Practices & Behaviour in Klang Valley, Malaysia conducted in 2018 by the Malaysian Institute of Road Safety Research, the average Malaysian spends one hour travelling to and from work. So we shall use that number in all our calculations.
Using the data from the study and the information provided on Grab’s website, we can obtain the average monthly expenditure to take a Grab.
Cost per trip
- Base fare – RM 1
- Cost per KM – 16 km x RM 0.85 = RM 13.6
- Cost per Minute – 30 minutes x RM 0.25 = RM 7.5
- Total = RM 22.1
Assuming you spend RM 50 every weekend and spend RM 150 on tolls, the monthly expense adds up to RM 1278.2.
New car costs
A brand new Perodua Myvi would set you back RM 52,697. Assuming a ten percent down payment has been made 10% on a 7-year loan repayment and a 3.05% interest rate, the monthly loan payment is RM 685.16 Assuming an insurance cost of RM 1650 per year, that is RM 137.5 per month.
In March 2021, petrol costs 2.05 ringgit per litre. A 1.5L Myvi with a Dual VVT-i EEV Engine can travel 20.1 km per litre of petrol. Using the same distance travelled and the fuel consumption of the car, we obtain 30km x 30 days x 2.05RM/L ÷ 20.1km/L = RM122.39. Rounded down the price is RM122 per month.
In 2016, parking rates increased by 150%. This results in a parking rate of RM 2 for the first hour, and RM3 for every subsequent hour should you park in the Central Business District (CBD). If one were to park from 730 am to 6 pm, that would be a total of RM32 a day. Let us assume that you have a season pass where you only pay RM 300 a month and your weekend parking is only RM 15 a day. Your total parking fee is RM420.
Road tax for a Perodua Myvi 1.5 is RM 90 a year or RM 7.5 a month.
Therefore, the total monthly cost for owning a brand new Perodua Myvi is RM 1522. This does not take into account the costs related to maintenance, summons, and repair costs if one were to get into an accident.
Pre-owned car costs
A pre-owned Myvi SE 1.5L (2017), would cost RM 36,888 with a monthly payment of RM 405 a month if purchased from myTukar. This price also covers road tax. Insurance for a car of this price would be RM 1206.89 a year or RM 101 a month. Using the same expense calculations from the new car, we get:
A pre-owned BMW 3 Series 316i 1.6L (2015) would cost RM 79,888 with a monthly payment of RM 876 if purchased from myTukar. This price also covers road tax. Insurance for a car of this price would be RM 2584.89 a year or RM 216 a month. Using the same expense calculations from the new car, we get:
Note: prices are different for every pre-owned car.
|Grab||New Myvi||Pre-owned Myvi||Pre-owned BMW|
Per the table above, a brand new Myvi is the second most expensive option of the four. Taking Grab everywhere will save you about RM 244. Of course, this does not take into account wait time, cancellations, and freedom to read or work while in a Grab.
Buying a pre-owned Myvi instead of a new one will save you RM324 a month, which adds up to twenty-seven thousand Ringgit over seven years! You will also have the joy of owning a car.
Another option is to fork out another RM 262 a month and buy a pre-owned BMW. After all, why would you own a Myvi when you can have a BMW instead?
In conclusion, taking Grab every day is still cheaper than owning a new car and driving it to work. As most Malaysians want to own a car to lower the chances of contracting the disease, the continued purchasing of cars is inevitable. Therefore, it is better to buy a pre-owned car to reduce the costs incurred when purchasing a car or just pay a little more to buy a more luxurious pre-owned car. myTukar offers the best retail options for buying pre-owned cars. Visit mytukar.com to know more.