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 Spending 1 year worth of salary on car

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ah78
post Dec 5 2025, 09:15 AM

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I thought it's default formula from car guru expert?

1 year salary is the value of the car that we should buy.
statikinetic
post Dec 5 2025, 09:17 AM

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QUOTE(ah78 @ Dec 5 2025, 09:15 AM)
I thought it's default formula from car guru expert?

1 year salary is the value of the car that we should buy.
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Different markets different formula.
Cannot use in the Malaysia & Singapore market due to inflated car prices.
MR_alien
post Dec 5 2025, 09:22 AM

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QUOTE(ah78 @ Dec 5 2025, 09:15 AM)
I thought it's default formula from car guru expert?

1 year salary is the value of the car that we should buy.
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should =/= would

financially "should" follow this way to stay comfortable
but people "would" not want to follow that route because that's not the car they "wanted"

that's why bank set the formula of minimum 1/3 to get the loan approved comfortably
1/3 car, 1/3 house, 1/3 everything else
but some people's car payment is still over 1/3 of their salary

"1/3" formula is actually worse than 1 year salary formula BTW
contagiouseddie
post Dec 5 2025, 09:28 AM

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Can buy if and only if down payment is big. 240K car also comes with expensive tyres and servicing and oil if it's an ICE. People usually forgot to count that. But I do actually think that generally most gullible buyers are at the bottom end. Like supposed to buy an Axia or Saga, end up with City or Vios.
vaksin
post Dec 5 2025, 09:41 AM

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1st car 40k, 2nd car 80k, 3rd 120k, 4th car 160k? in 20 years...
total paid 400k edi for car... if living cost B40, can retire edi with the cash...
ScooterBoi
post Dec 5 2025, 09:42 AM

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QUOTE(statikinetic @ Dec 5 2025, 09:17 AM)
Different markets different formula.
Cannot use in the Malaysia & Singapore market due to inflated car prices.
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Agreed. While in USA, it would be 6 months, here 12 to 18 months. 24 months would be too much money on a car, beyond your means.

Also down payment about 15-25%. Having just about 10% shows that it is too early and should save more; showing that there's too little savings to afford that particular car at the moment.

To be financially prudence, loan should not be more than 5 years. 6 years is pushing it, yet still okay for a first car. Beyond the 1st car, should be financially sound to handle higher installments, keeping it less than 4 years.
focusrite
post Dec 5 2025, 09:44 AM

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I wish I don't have to buy a car and can just us mrt

I saved so much money when working in Singapore
arthas
post Dec 5 2025, 09:48 AM

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y not, u spend so much time on the road everyday in Msia tongue.gif
bismaximus
post Dec 5 2025, 09:51 AM

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Live a little. Buy the car you enjoy and trust me, it's a life like no other. Don't waste your money buying an MPV, SUV or heck even a Civic. (Unless it's a manual Civic like the FL1 or Type R)

Go out and get a driver's car.

Fk all these gurus and a holes that say save save use public transport, don't do this, don't do that, in the end they don't go anywhere, don't amount to anything. Let them live in the matrix with their shitty jobs, driving shitty cars.

This post has been edited by bismaximus: Dec 5 2025, 09:56 AM
mango27
post Dec 5 2025, 09:56 AM

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Depends on the car in long term also la.. I bought a car 1 year of my salary 13 years ago.. still in great condition and only need regular maintenance servicing..

Compared to some who spent loads in conti cars, constantly paying for workshop fixes.. eventually adds up also.. plus time wasted
JohnLai
post Dec 5 2025, 09:56 AM

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QUOTE(contagiouseddie @ Dec 5 2025, 09:28 AM)
Can buy if and only if down payment is big. 240K car also comes with expensive tyres and servicing and oil if it's an ICE. People usually forgot to count that. But I do actually think that generally most gullible buyers are at the bottom end. Like supposed to buy an Axia or Saga, end up with City or Vios.
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The main problem is that our so call local car from Proton and Perodua are way overpriced.

Even the so called affordable Axia Rahmah also no longer in production when I went to Perodua center to ask about it. dry.gif

a_dot_el
post Dec 5 2025, 09:57 AM

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QUOTE(MalcomShorten @ Dec 5 2025, 12:20 AM)
Sounds quite insane to me.

Let's say you earn RM240k a year and you buy a RM240k car, you literally have spent your entire year's worth of hard work just to buy something that brings you from point A to point B.

Imagine that, 1 whole year of suffering all goes into 1 thing.

If you consider this from a disposable income perspective, that's even worse! After reducing tax and all other living expenses for the year, you could be only left with RM5k a month and that's considering you aren't the spendthrift type. You would have spent at least 3 years of your life, working hard just to purchase that car. I discounted 1 year for bonus, increment, and investment income, which is more than generous.

What do you guys think? 3 years worth of blood sweat and tears for a car, worth it?

In reality, most Malaysian would actually be spending more than 5 years worth of blood, sweat, and tears on a car cause most either buy a car worth more than their 1 year salary, took long loans with high interest, or have a super low disposable income because of commitments.
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That's the proper calculation to determine if you can afford a car.

So if your annual salary is 120K (10K a month) then the car you can afford is 120K.

Most people spend more than 3 years of salary in car, just because bank approves it doesn't mean they can really afford the car.
ketupatlazat
post Dec 5 2025, 10:02 AM

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Jangan kedekut sgt dgn wang sendiri

Spend sudeh, later youll be 50+ yrs old in no time and still be stingy af sampai mampos
Fantasia
post Dec 5 2025, 10:03 AM

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QUOTE(MegaCanonF @ Dec 5 2025, 08:20 AM)
If i can turn back time,

yes ayam will just settle for proton iriz / myvi / bezza
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I drive cheap car now so that I can save up to afford more expensive car in future icon_idea.gif

QUOTE(ry8128 @ Dec 5 2025, 09:12 AM)
No rules that say must buy new car. 36k used  car, a lot of choices
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Instruction unclear, got a 10 years old BMW 5 series biggrin.gif
yhtan
post Dec 5 2025, 10:03 AM

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one year salary is fine, so many fresh graduate earning RM3k+ and driving Axia/Bezza/Saga which cost more than the annual salary

For some job it require the staff to have a car to travel around to get sales or to go client office/factory. The car probably bring more job opportunity for the person.

If u are earning RM50k annually and go buy BMW 3 series of RM250k, then yes that is a big financial mistake.
ridox_orimabu
post Dec 5 2025, 10:10 AM

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mana millionaire tapi drive axia?
Cubalagi
post Dec 5 2025, 10:11 AM

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QUOTE(vaksin @ Dec 5 2025, 09:41 AM)
1st car 40k, 2nd car 80k, 3rd 120k, 4th car 160k? in 20 years...
total paid 400k edi for car... if living cost B40, can retire edi with the cash...
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Do include the hire purchase interest paid for 20 years, assuming not pay cash.
ecrl
post Dec 5 2025, 10:21 AM

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QUOTE(Fantasia @ Dec 5 2025, 12:32 AM)
1 year of salary for car in Malaysia is considered very conservative due to high car price. Many Malaysians pay much more for car. My friend earns 3k per month is driving a Toyota vios while my paid is more than double of his and I drive Proton Iriz
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Iris and Persona is very good car.
netflix2019
post Dec 5 2025, 10:23 AM

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so buy house not stupid?

pay 25 years just for a roof over your head.
Kelefeh
post Dec 5 2025, 10:36 AM

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my salary 3.5k only drive civic fe
now on the way to bankruptcy cry.gif
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