Yup. Stick to something that can be afford. End of the day, car is just another liability

Totally agree. You spend so much initially, and the price will drop. Might as well invest your money wisely.

True. Not to mention it will not appreciate in terms of its value.

Am thinking of getting a Kenari as my first car. Should I take longer or shorter period loan payment?
Usually, how do you guys do it?

But buying Honda Civic 1.8 may means that you have to spend out like 2.5k per month, including instalment, roadtax, insurance, service and petrol?

Really for big spending liao?

What don't you get a new car instead ? Lower maintenance ... Such as VIVA or SAGA.


It depends, try to take the shorter period one if possible.

@epalbee3,
Eh. but the Honda Civic will last at least 7 years!

Agreed.

If it is me, I will buy the best car I can afford.
and keep long long, rather than change car often and lose much more on depreciation.

2.7%

Hm, no new Kenari available this year? I don't know that I thought Kenari is still on sale?
Viva? Tak minat.. Saga? I prefer Perodua cars.
Ai..

Shorter period? Noted. Thank you..

Solse,

My personal advice, lengthen your installment period, pay a good initial downpayment, minimize your monthly installments.
This will eventually make your monthly cashflow better and you will have the extra to spare every month rather than having tough times making ends meet every month.
You can always nego with the bank for a pay up to your loan sum middle of the way through your tenure with a sum of ard 8k or 10k. The bank will be happy to restructure the loan for you.

Save up to invest. As some of the above said, Car is just another liability. Spend wisely, Invest even more wisely.


**Kenari still on sale since they're still having on their website. I guess la. haha...

This post has been edited by cheez: Jan 18 2010, 10:42 AM

Ok.. I will consider this too.
Thank you cheez!

However, I don't quite understand this part:

nego with the bank for a pay up to your loan sum middle of the way through your tenure with a sum of ard 8k or 10k. The bank will be happy to restructure the loan for you.

?? What does that mean ya?
Ya, I saw it at the website too.. I want a Kenari

OK. Let's say you took up a loam sum of 40k for your car. You applied for a 9 years installments.
Let's say after 1 year, you got an extra cash amount of around 8k to spare.
Then you go to your bank and tell the bank: 'Hi bank, I want to pay off the RM40k of my loan with this RM8k. Kindly restructure the loan for me. Thanks'

You can always call any P2 agent to find out whether they still sell the kenari.

Ahaha.. "'Hi bank, I want to pay off.." This is good.
Ok.. Understood. So, when I restructure the loan, means I'll pay less for next payment?

@solsekuin44,
But for car installments you aren't gonna get much discounts even if you pay them off. You should also work out the total interest you'll be paying then you'll decide if you really *want* that car.

My advise, don't take a 7/9 year loan; anything more than 5 is ridiculous!

Not really. It depends on how you nego with your bank.
Some might be lower monthly installments, some might be shorter tenure.
So it's totally case by case basis.

My 2 sen, remember that monthly cashflow is very important for someone that wishes to make a good start to an investment portfolio.
Because normally someone that starts working will tend to have lower nett income to spend (which i assume you are).
Some advice might not be applicable from others if they start to advice from their POV.

In conclusion, you take control of your finances. Plan and calculate according to your needs.
Work on your finances else it won't work for you.

IMO, anything more than 4 years is ridiculous.

If got extra money, DON'T DUMP INTO UR CAR LOAN. Waste money only. If you have a housing loan, DUMP IT INTO THE HOUSING LOAN coz car loan is flat and doesn't decrease the total amount you have to pay, while house loan interest is based on the balance of the principal loan.

To a certain extent, I agree with you BUT that is IF you have the spending power which permits you to do so.

IF I have the cash, I'd buy the car in full settlement and need not to apply for a loan.

So it still depends on individual's spending power.
E.G.: If a person earning RM2k a mth, and decided to take a loan of 5years, paying a monthly installment of near RM800, that would take up almost half of the earnings. This haven't include the petrol and other expenses related to the car.

Still I'd say it depends on individual's financial situation and not be so definite on our opinions.
In the end of the day, the one that understands the most about oneself is the individual themselves.

@cheez,
If TS is just started out; I personally feel he shouldn't be looking at a Honda Civic 1.8 - at the kind of prices, it's not meant for a freshie; seriously!

@Matrix,
Lol. I definitely agree with U and personally, I wouldn't take a car loan which is more than 3 years.

i've been reading this thread and i just want to put in my own experience here..

true.. started with 2k a month.. pay off 800 a month is really gonna suffer.. but then do not forget that your income will increase.. and sooner, u will be thinking u wanna pay more for ur car loan because u want to get rid of the car loan as soon as possible and invest in other things.. i know i am..

but then u can say that u need money for maintenance etc etc.. but if u need money for maintenance, then u cant save up money for ur restructuring.. and then dun forget, u might want to get something u like that will take up ur savings.. or go to a trip with ur frens or families somewhere between that 7-9 years.. 7-9 years is a long time.. and by that time i think u will be earning more than 2k..

all in all is do u know how to manage ur cash flow..