No. He is not.

Back in 2005 when my mom bought her Proton Waja, we visited 4 different Proton dealers here. Most of the dealers offer us 3.7% for a 7-year loan. There was one offered us 3.2%. Luckily we visited one more dealer and they offered us 2.8% only from EON Bank.

It is advisable that you check out the interest rate yourself by visiting every banks. You should start with the bank you have an account with.
You should check out all the commercial banks in Malaysia. But please note that only local banks offer car loan. Foreign banks do not.

Look out for EON Bank and AmBank. Both are leaders in the hire purchase market.

I'm irritated by how everyone is lamenting how a car is a liability etc etc in the past few pages. Don't be stupid. Its an investment alright. Its an asset in its own right.

Just because it doesn't bring in cashflow directly doesn't mean it doesn't bring you benefits indirectly. Its just like saying "My factory workers are liabilities.. I'm paying them but they don't bring in money for me. Only my sales department is bringing in the revenue". Padahal if you have no factory workers, your manufacturing collapses, and therefore your business dies.

So don't be stupid. A car will transport you back and forth to and from work. Having a car will open up your career options, employment options. Having a car will increase your customer outreach if you are doing your own business.

PS : Having a car might even score you a partner that is looking for someone that can provide. And that, is a lifetime investment in its own right! :@

PS2 : But how big/expensive/fancy a car you are willing to get is up to individual desires.

Having a car will open up your career options, employment options. Having a car will increase your customer outreach if you are doing your own business.

Grimm,

<<Just because it doesn't bring in cashflow directly doesn't mean it doesn't bring you benefits indirectly.>>

Benefit <> $$$

Hence, it is a LIABILITY.  Simple as that.  If you want to LIE to yourself, go ahead.  But, don't spread the LIES.

<<So don't be stupid. A car will transport you back and forth to and from work.>>

Ditto on public transportation and so on.  If you NEED a car to take a job but the job do not PAY enough for car, do not take the job.  It is a net loss of $$$$.

<< Having a car will open up your career options, employment options. Having a car will increase your customer outreach if you are doing your own business. >>

How much $$ does that translate into?? What is the ROI?? If you CANNOT quantify it, it does not exist.  If you could, you could figure that how much a car that you can afford.
T630,

Who say so??  Most people LIE to themselves and buy car that they CANNOT afford.

How do you KNOW that they cannot afford it?? It is VERY SIMPLE.  If a person CANNOT SAVE 10% to 15% of their gross income consistently. they spend TOO MUCH.

Dreamer

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Added on January 22, 2010, 9:16 pm

jasontoh,

<<  None of them think out of the box that with car, you have the flexibility to choose a place to stay, you have the flexibility to work over night (discussion for freelance job, etc).>>

Or, do not buy a car so that you do not have to work that hard to maintain the car.

ROI.  Return on investment.

If you do not spend that much, you do not have to earn that much.

So, how many people EARN ENOUGH to justify the car??  On the average, not many.  So, those people will be working for me and making me rich through my PBBank share.

Dreamer

jasontoh,

Let's stick with CAR.  Unless, you are in a car rental business, CAR is not an asset.

<< If you have a car cost you about 1K for maintenance, insurance, installment, while you can earn few times extra, I do not see why we should limit it?>>

So, have you ACHIEVE this??

Using a car to multiply your earning?? Or, this is purely theoretical??

Give a REAL example and lets examine the number to see whether it is TRUE.

Or, it is TRUE in less than 0.0001% of cases.  Then, it is NOT a good advice for GENERAL PUBLIC.

<<Why limit our earning capability?>>

The CORRECT statement is DO NOT SPEND the money that you DO NOT HAVE.

Unless and until you EARN ENOUGH, do not justify a car.

Dreamer

jasontoh,

Okay.  Show us the number.

1) How much you pay for the car every month??

2) How much  do you earn from tuition every month??
Dreamer

jasontoh,

<< 2.) Per lesson of 2 hours, RMxx-RMxxx.  At least 4 lessons per week (x00). My other freelance currently requires less traveling. Total income from other jobs, cannot be revealed, as I do not need to prove anything. Just tuition enough to cover the car, not including others.>>

1) So, do you earn a few K per month for your free lance plus tuition?? Yes or no.  That was YOUR CLAIM.  It is as simple as that.

2) How many hours per week do you spent on your freelance plus tuition??

3) Do you have a full-time job at this moment??

<< I do not need to reveal everything to you actually, whether you believe or not, still up to you. Because even if I tell everything, you can still choose not to believe.
Most people choose to be constraint by the box, only some will choose to think out of it.>>

4) I have WAYS to figure out whether you are telling the TRUTH.

5) I just want to establish your circumstances.

    A) A few times of your car expense?? True or false.  More than 2X or less than 2X.

    B) How many extra hours per week to support those expenses??

    C) Do you have a full-time job now??

I do not need exact number.

This will let people KNOW whether they are willing to put in the SAME AMOUNT effort for your so called think outside the box.

Dreamer

jasontoh,

<< PS: Think out of the box is not just about the freelance and working extra hours. There are many ways to earn extra money as sky is the limit of your earnings. If you're good at something, never do it for free.>>

That is YOUR WAY.  However, people in my group CONCENTRATE our efforts in OUR JOB/ PROFESSION.  And, we earn a few times more than normal people.  For people in our group, as long as we are FRUGAL, we ONLY have to SAVE and INVEST to reach our goal.

So, in our case, we SPENT our free time on learning how to invest and how to do our job.

Think in the  box or out of the box is IRRELEVANT.  There is NO BOX.  The QUESTION is how to maximize your ROI on your time and effort.

Dreamer

P.S.: I had seen many people that earn less than 5K per month has the same kind of thinking like you.  This is very common.  Now, whether it works or not, I have no idea.  This is not the kind of path that I choose.

jasontoh,

<< I have colleagues who are saving about 90% of his/her net salary monthly (no cars, ptptn payment at the most minimum, and worst of all don't even think of getting a better life for parents). But to me, what is the point of skimping your meals and lifestyle while you do not enjoy it and share it with your love ones?I rather run the extra miles, so that I can share the happiness with others.>>

You are in the under 5K group.  So, you cannot even imagine or understand about people that make

A) 5K to 10K

B) Above 10K

For people that make a lot of money from their salary,

A) They can enjoy a middle class life style as long as they are NOT too luxurious

B) They can save a lot of money

C) They can invest a lot of money and be rich in the process.

I know a couple.  Both husband and wife make above 10K per month.  Wife drive a Proton Wira.  Husband drive a 100K car.  They live a a reasonable life style.  They eat at GOOD RESTAURANT.  They are FRUGAL.  They lived a middle class life style even though they could afford a lot more. They spent their money on European vacations.

1) Husband has 2 millions alone in the company pension.  So, even if he saves NOTHING, he retired with 2 millions.  But, he probably has more than 1 millions or more in current asset.

2) Wife alone probably has 1+ million in savings and assets.

So, DO YOU THINK that they care about free lancing and side income?? They spent more time on investing their money and doing their job.

But, they are FRUGAL.  Most people in above 10K level spent a lot more in car, house and other luxury stuff. For them, they took vacation to Europe regularly.  You could not tell from the house and car that they have.  They are the quiet millionaires.

My POINT is this.  Some people can be RICH within their box.

Dreamer