Instead of the old 1 year gross salary equals to the car you can afford, I think the rule of thumb of 2 years saving excluding bonus and other income equals to the car you can afford to be most reasonable.

1 year gross salary equals to the car you can afford doesn't make much sense because some people with 20k salary after deducting all the commitment might have a monthly saving of 2k but a guy with zero commitment who earns 10k could save 5k every month, which makes the 10k salary guy are more able to afford more expensive car than the 20k salary guy.

The 2 year saving rule make sense because anything less would make it unreasonable for the average man to buy a car unlike super ultra wealthy people who could just spend 1 month of their saving to buy a Ferrari easily while anything more is a bad financial decision cause for an asset that only last 10 years, the more you stretch your saving on an item that depreciate over time, the more it feels like you are slaving away your life just for that temporary status boost or self satisfaction.

I duno why ppl would invest on assets that will depreciate.

No matter what, will always stuck in the jam.

Noted.

again someone coming up with oh i thought it through let me share it with /k..

buy base on what you're dividend payout per annum. that's even better.. dividend 10k make sure the yearly tco doesn't exceed the 10k.

i'd say max 3% of one's clean networth....

of those just started working/early stage of career, 6 to 9 months of salary: chances are will be via bank loan.

For some people, it's a tool. Need to travel to work e.g. sales, outstation projects. Some of us are on the highway every week. A comfortable car goes a long way to help with fatigue. Also safety on the road.

I think is stupid you can afford expensive car but then stuck in jam balik kampung sama2 dengan mereka , i thought you can afford expensive car should take other route by flight? Or helicopter ? much more convenient kan bila cuti sekolah+public holiday? No need stuck in jam dengan mereka tapi erm something not right.

If you cant afford the cost of 2 of the exact car you're buying, then look for a cheaper car.
That's the rule of thumb.

That is a dangerous rule.

If you have 1mil in savings, then buying a 500k car makes little sense. You are throwing away half your savings every time using that rule.

For me the rule of thumb is car instalment shall not more than 20% of your salary

Based on that I can only afford kereta sorong

If bank loan approve, means bank say you can afford it. Why worth lol

Unker no job so take bus forever 🙁

I mean what you can afford to spend.

not your saving or what you worth.

for example. if you have RM100k for a car.
based on rule of thumb, you should be able to buy a RM50k car 2 times.
That means, you should buy RM50k car.

In case anything happened to your RM50k car, you will not be shaken.

Stopped reading when they called a car an asset.

What's more stupid, you drive expensive cars, fully tinted.

No body can see you anyway.

Lat time people show off their car with supercharge & turbo. Today people want to show off their car no engine & built in powerbank. In the end, new car is just the same only shape, tech, software to compete. It's just same as your handphone today, upgrade and disposed the old one.

When balik kampung, 100k & 50k can make the difference. Everyone in kampung will salute you with 100k car & your family will become top level jaguh kampung.

Haha....you live based on your means, not due to what people will salute on.

Planning for finance based on what you can spend without getting trapped.

a viva basic
if got kancil than kancil basic