27 year old Malaysian save money driving a 21-year-old Proton Saga

[RickyWee]

https://mothership.sg/2020/08/malaysian-drive-old-proton/

 

Hi, I'm Ken. This is my experience of a 27 years old Malaysian guy on driving an old Proton car in year 2020.

Ever since graduating from my university on 3 years ago, I've been driving this car as my daily car. Time to sell this old Proton for a new car that is more suitable for someone of my age? Not yet.

The car I'm driving is just a 1999 Proton Saga Iswara 1.3 Aeroback. An old car that is as normal as you can get in Malaysia. Not a BMW, Lexus, Audi, Nissan GT-R or any other luxury cars.

Owning a new car in Malaysia can be expensive considering the price of a new car per average monthly income ratio. By average, I would say it is easily over RM500 per month for the upkeep of a new car in Malaysia even if it is an entry level car.

By average, what was needed for the upkeep of this Proton Saga Iswara per month would be around RM300, inclusive of fuel, maintenance and any random repairs. Yup, that would be around RM3600 per year and it should roughly be enough to keep my car running for a year. It doesn't demand repair every single month of course and those are the months that I can save up more.

What have I learned from driving a 21 years old Proton as my daily car? Well, at first during my early days of driving it, I do get a lot of negative feedback from it as it was in quite a poor condition before I restored it. Many recommended me to take up a car loan for a new car instead of wasting my money to fix up this Proton Saga.

It is a good thing that I din't or else I would still be paying at least RM500 per month for the 9 years car loan installment at this moment. I haven't even include the costs for fuel and the yearly insurance costs which isn't cheap for a new car.

My current income is eligible to sign up for a RM50k to RM60k car loan from a bank but why spend so much per month to pay for a new car that I use as a daily point A to B transport? Not only that, a car value depreciates quickly per year, even faster than the amount that you are paying in a year for some cars. Say if I buy a car for RM60k under a 9 years loan, by the time I finished repaying the loan, the car is probably worth only RM20k by then. RM40k lost in depreciation and I have not even factor in the amount that I've lost in paying interest rates to the bank.

Instead of tying myself up under a loan commitment, I'm better off driving this old Proton Saga and save up all the extra money per month. What I can get with the extra money would be flexibility as it can be invested, given to family, saved up for the future, for property, etc.

Obviously compared to my similarly aged peers, I look like the sad poor guy who drives an outdated old Proton Saga that his family handed it down to him when others are driving shiny brand new cars with latest technology. Some will even say that I am risking my life because of the poor safety features in this car. Hmm, does that mean that motorcycle riders are battling against life and death daily as they ride out? Or maybe your parents or the older generations are risking their lives too during a few decades ago when they are driving cars like this?

I can't say there is a 100% guarantee in road safety regardless of what car that you are driving but having a nearly empty bank account per month due to high commitments is a guaranteed risk in personal finance management.

[Colin03]

Is a very good choice if act as a mean of transport only.

Moreover the spares are easily available in malaysia.

where can you find such a dep/year car.

I am ok to drive this even in Singapore if the amount spend per year is reasonable (below 2K)

[Heartbreakid]

It's not just this case. Similarly here, people renew their ride's COE are also a way to save (alot) and spend their money elsewhere wisely when there is really no need to replace their ride when they are well-maintained.

[Albeniz]

When I was about that age close to year 2000,  I was driving an old 1982 Nissan Sunny 1.3GL.  Yes, the one with the big black bumper.

No money to buy a purple Lamborghini at age 24.  That time not much internet activities for me to act as an influencer.

 

[Ct3833]

After reading this post, I better go downgrade my 11 year old COE car to a 20 year old COE car. 😛😛

But frankly, not many young men could think this way, neither was I when I was "younger ", only when steping into 50 then I began to feel the pain of spending on car.  kudos to the young chap.

[Vinceng]

There's still affordable cars from $3,800 annual dep in good condition, but nobody wants to buy such cars. Because very sia suay (no face).

https://www.sgcarmart.com/used_cars/info.php?ID=901539&DL=2163

https://www.sgcarmart.com/used_cars/info.php?ID=883114&DL=1000

https://www.sgcarmart.com/used_cars/info.php?ID=896090&DL=3521

Edited August 11, 2020 by Vinceng

[Josephthm]

I was actually looking at these cars! Haven't decided on which one yet. Even a BMW E30 is only $39k...

There are cheaper options. Just need to get it checked for potential problems..

Edited August 11, 2020 by Josephthm

[Kyrios]

Good thread in direct contrast with the other lambo 24 year old buyer..about same age but vastly different outcomes...

[inlinesix]

3 minutes ago, Josephthm said:

I was actually looking at these cars! Haven't decided on which one yet. Even a BMW E30 is only $39k...

There are cheaper options. Just need to get it checked for potential problems..

https://www.sgcarmart.com/used_cars/info.php?ID=800145&DL=1095

[Vinceng]

18 minutes ago, inlinesix said:

https://www.sgcarmart.com/used_cars/info.php?ID=800145&DL=1095

No doubt a good buy but for the budget conscious, the 2,000cc road tax (with 50% surcharge) and annual dep alone, will set the buyer back by at least $7,000 a year.

For the same money ($7,000 a year for dep and rd tax), you can get a brand Hyundai Accent, Perodua Bezza or Mitsubishi Attrage with  5 years warranty, free servicing thrown in for 3 yrs and worry free motoring with minimal change of wear and tear parts.

Edited August 11, 2020 by Vinceng

[Windwaver]

Why not? As long as it's cheap to maintain and serves its purpose.

 

[Windwaver]

1 hour ago, Kyrios said:

Good thread in direct contrast with the other lambo 24 year old buyer..about same age but vastly different outcomes...

Just like kids these days buy razor mouse when a basic $8 mouse can work almost just as well.

 

[Jellandross]

And then this...

Man who bought Lexus at 19 calls it one of his worst decisions

http://theindependent.sg/man-who-bought-lexus-at-19-calls-it-one-of-his-worst-decisions/

 

[Jamesc]

What a sensible young man.

[Albeniz]

14 minutes ago, Jamesc said:

What a sensible young man.

This is one sensible young man all mothers -in-law would like their daughters to married to.

[Vinceng]

$3,000 monthly household income and paid for the car in full cash.

This is what you call buying your means, even if it's on a tight budget.

https://www.channelnewsasia.com/news/cnainsider/low-income-and-owning-a-car-why-9449930

[Kangadrool]

The major downside of this make/model is the atrocious fuel consumption especially if it's an automatic. Rented one in Langkawi and I need to top up every day. Also, the braking takes a long time to come to a stop aka VLCC vessel transversing along Melaka Starits while trying to avoid some idiots. 😂 If you don't mind the sound proofing like riding a helicopter, this car is for you. Handles pretty OK though even with its barge-lookalike silhoulette.  Maybe got "Lotto" tuned suspension. 🤣

Edited August 11, 2020 by Kangadrool

[Sosaria]

This kind of car is actually okay for malaysian rural roads. No point getting a new flashy car when after traversing their kampong roads ... suspension will be trashed. Simple things like parking is also risky as their curbs are uneven height - easily scratch bumpers and doors when opening.

The young man looks like he scrimps and saves on food expenses too!