we all know that best formula for cars is the car price should not exceed your annual salary . eg : 5k salary = 60k car


however are there any instances that you bought a car that is more than this formula? for example putting a higher DP to reduce the car price, etc ?

anyone can share experience, do you regret it? or you happy with your decision?

For me is a different formula, i buy a car that i have the ability to pay of instantly for whatever reason if needed i.e lost of income , ability to work, lost your job.

Alot of people take into account what they can afford now based on something that they "think" will be there in the future like your job/income.

Playing field has changed now... it's no longer who has the bigger car/balls on the road but who still has the ability to drive around and have ability to sustain a car amidst all the noise out there...

Yup, we cannot predict what will happen next in our life.

Better settle of debt fast and not accumulate new debts unnecessarily.

This post has been edited by GOPI56: Jan 29 2024, 08:40 AM

You still can pay your car loan when you loss your income.
not how much you earn per month, bad time happen.
but house loan is killing us.

This post has been edited by wong_86: Jan 29 2024, 08:44 AM

Some people are way out of comfort zone... and streatch it 18 months and beyond.

Cant blame them because salary is not keeping and catching up with increasing cost of things

So car price = 12 x monthly gross salary? Or x 24 or...?

yes, 7k salary buy alphard 9 years loan
why? family needs and they rejected all other affordable options
happy but there are lessons learned from this purchase.
if you can, get a trusted mechanic to inspect the car. for recond cars, there may be hidden issues which amateurs like most of us will not be able to detect
the odometer showed 4k only and still had "new" car smell lingering

problems detected after a few years:
rust under paint and the paint peel off and some parts faded. i never managed to solve this effectively, did 3 times full car spray over 10+ years
aircon compressor needs to be replaced, according to aircon shop, this happens only after 30k usage. at the time the car only ran for 15k maybe?
if i recall, i was given quite used/worn tyres and had to change all 4 within a year
kena con many times for overpriced service because dunno anything, air filter was never changed for almost 10 years... all the mechanics just did the normal blow off with pressured air

Use to think just get 9 years loan for a car...but nowadays 5 years cukup. If 20% of my salary can pay for the car for a 5 years loan + MAINTENANCE + REPAIR + INSURANCE + ROAD TAX then I'll go ahead.

Wadepak.. how u afford alphard?? I earn more than you didnt even consider alphard..cannot afford

1st time heard A/C compressor need replaced every 30k. Bro, he is rubbishing you.
What you need is an A/C shop which can service/flush your A/C system using machine nowadays. No need replace whole compressor, but service change the compressor PAG oil, which i think most Toyota is using ND8 (PAG46) compressor oil. (Except hybrid must use special compressor oil) If your driving a lot in city traffic jam, mostly need to service/flush yearly or around 10~15000km max. If not, every 2 years or 30~40000km service flush also sufficient.

This post has been edited by littlefire: Jan 29 2024, 09:41 AM

Buy cash outright, though now I think 5 year loan is best-provided you have the means to buy cash. If not, don't even think about buying it. 5 year loan at 2.7% vs investment, min 3% P.A. This is the best. If put cash down fully-loose out the method of obtaining more funds rather than diverted to depreciating asset (car).

Buy a car based on what you have in your savings. Maybe twice the amount of the car in your savings.
Can't depends on salary as everyone in the workforce are easily dispensable nowadays.

if 60k annual, better look for 6k~12k car with cash
I read Mr Stingy last time, and decided that I really couldn't afford anything new, see below


some ppl think I loan the car 5 years, mean I can 'afford' a car that's worth my 5 year salary combined
so, 60k * 5 = 240k so they go buy anything they think they can 'afford'... until it got stolen

example:
- imagine buy car worth 120k, 5 yr loan, monthly ~2k (not incl interest)
- tolak 1 year loan 24k = 96k balance
- 70% insurance payout after 1 year means 84k
- still owe bank 10k in cash for full settlement
- 1 year lose 34k to a stolen car

The car that’s under my name (for my mother, mainly) is paid for with cash. I just put aside a little bit every month for five or six years and combine that with the resale of the prior car (which is usually decent). Not a fancy car so not a huge financial strain, nor will LHDN seek to call me for coffee.

My daily driver is slightly more upscale but it’s leased (Kinto subscription) under my company. Less headache since one monthly payment covers everything from insurance to servicing to tyres. Also improves the company’s “creditworthiness” a bit I suppose.

This post has been edited by dev/numb: Jan 29 2024, 02:05 PM

There is no golden ratio, only total capacity one can handle.

Regardless how much we earn
- egg cost the same
- roti canai cost the same
- petrol cost the same
- utility cost the same
once can go for premium service, but the baseline is the same for everyone to basically survive.

Ask someone with 1500 per month to buy 18k used car base on 12 months guideline will kill the person
Someone that make 100k per month can spend 50k installment on multiple cars, who are we to judge him/her? After deduct tax and installment, still can make a decent life.

You know what you can/can't afford.

This post has been edited by constant_weight: Jan 29 2024, 11:38 AM

Imo net monthly salary x12 is a better gauge of what car you can afford

Buy car price not more than your annual salary just a simple reference so you don't overcommit to the car.

If your annual salary is low but you have tons of saving that can cash out the car u bought although it is already over your annual salary, you can still buy it.

The key is how much u can afford a car without it taking a big chunk out of your income/savings.

If there is people with 3k salary went for 100k car, by all means if they do not have any commitment or future plan, doable but not a wise thing to do in life. But hey if you have a dream to own 100k car and willing to sacrifice your entire saving for it and face the consequences, why not?

Fair enough. There are many with such belief. Spend now, worry later.
No savings meant for post retirement era. Nothing for rainy days.

yes and no regrets. even if yes, also pointless.
gain some lose some

I am happy and grateful with the entire journey from then until today.



#MeToo 9 year loan. until 2027 to kaotim, but hopefully my plan and goals will work and can settle it a year or 2 earlier.

yeah i knew i couldn't afford my car but i still went with it anyways
at least i'm well aware of my action and the consequences, and some how i managed to pull through. numerous close calls and many hurdles over the 6+ years, but nonetheless still surviving

thanks . i'm contemplating to buy a car that a bit higher than my budget.

yesterday my north south journey bring my ol dad. felt so kesian. although the journey was smooth, but many traffic jam, old car no ACC/ICC , so tired liao.

Plus the weather is scorching hot, tinted oso no use, current car no back aircond vent . also its a hatchback so back passenger is not comfortable . with all the luggages / wheelchairs around.

sometimes i oso wonder if we being frugal so much is ok . oh well