The car you can afford is your current salary x 12

Got it! Cos if calculate by 12X monthly, many fresh grad salary 2-2.5k and they usually buy city or vios as first car. That's 3X the ratio. Based on that situation, a 260k car is only need 7.5k salary.

According to Dave Ramsey, you want to drive your car and not let your car drive you, i.e. you shouldn't be the slave of your car...

Value of the car that you want to buy should be:

50% of your annual income after tax.

So, 260k x 2 = 520k annual income after tax.

oh ya, and buy it with cash.

Otherwise, means u can't afford. sorry

not so sorhai if u are the person who wants a piece of mind.

i got another thought. if i current 7.5k then i up my salary to 10k, means i can afford the loan and not change in my lifestyle right?

actually, no one disagrees with you on how you determine affordability of cars as everyone has their own budget and planning. if you find one that works for you, great.

the point of dispute is where you imply buy in cash else it is unaffordable and that's a very bold claim to make because then it becomes an even bigger decision to make than undertaking a new car purchase because you are basically exhausting all your liquid cash in one instance.

"buying in cash" cannot possibly be interpreted in any other ways other than paying off the entire purchase price of the car at the point of purchase else which dealer will allow you to take possession of the car?

so with your PROVISO in place, do you now still advocate buying cars in cash or take up a loan to part finance the purchase?

i like your ideology because you like to live debt free without financial commitments but i'm intrigued to know what is your position in terms of purchasing real properties.

your last sentence is quite unnecessary 

this is how u calculate:

car: 260k
down payment: 10% @ RM 26k
financing: RM 234k
tenure: 9 yrs
interest rate: 3% (assume)
monthly: RM 2,750

so u only need a salary of RM3k u can surely buy a rm260k car 

dun listen to haters. listen to your inner want

surely your salary will incresae every year ma

by the time u finish pay, ur slary must have grow from rm3k to rm 8k liao

now i’m more confuse after got 2 different opinion here. any car salesman in forum?

u r different level bro. if reach your level i also will buy luxury car for my mother.
yes that is why i dilemma. one hand is as u said to be comfortable with the purchase and leaning to that after all the advice. also the maintenance cost will be much more than the car price. but on another hand i’m still young if i don’t make the purchase now i don’t think i will make it when i’m older due to more things to worry about. also seen how some of ppl i know just suddenly have big issue when they old time and didn’t actually enjoy their life when they young. means they never actually live their life before. when u do stupid things during young time is more forgivable than do stupid things when u r older with large commitment.

I bought all my cars cash even from c&c. Correct me if I'm wrong , if u r talking about fd vs 1.88, the eir of 1.88 is actually higher than most average fd u get as of today.
On average 1.88% will yield rough effective of 3.4 to 3.5 , bank fd on average as of today is lower than that.
Of course some will say u bring 2m to bank, interest rate will be different n such, from my experience, rarely, even with significant amount , unless u take up their investment funds , the interest rate doesnt increase much

I am a multiple Mercedes owner and I like to share my view.

The most important consideration before you put money into a RM 260k car is to put your priorities right.

Before you put that kind of money into a car, make sure you have accumulated enough hard assets in life aside from a stable paying job. What I mean by hard asset include a thriving business, fully paid properties/lands or properties/lands which have appreciated far beyond the cost that you paid for.

When you have either of these hard assets, owning a RM 260k car is a non issue because you know you have all these appreciating assets to back you up.

As for the income level to own a RM 260k car, I would say it is RM 10k and above in Malaysia. Why 10k? The average Malaysian here only make RM 6-8k max in their working life. Thats why you see plenty myvis and japanese cars on the road which they could only afford.

Once you hit rm10k take home pay before bonuses, I think you have demonstrated the ability to earn more and your income will not stuck at RM 10k forever. When I made my first 10k, I went on to make multiples on occasional months which makes owning the car easier.

Hi MeToo, I previously read up on your buying a Marc for your mom. Just wondering what is your age range and what do you do,industry?

Which bank mind telling ? Pure fd non investment

My dear sir, I'm asking major local banks which one is offering something significantly higher than your 3.6% for pure FD.
NAmely public maybank cimb. I found none not due to lack of effort thus would love to have u share with us.
Wont berate u if u cant find as well . Im here sincerely to ask, not to fight with u. Im no longer a 30 yo boy looking for a fight