Is Your Vehicle Worth The Cost? Here’s What You Need To Know!

Is Your Vehicle Worth The Cost? Here’s What You Need To Know!

There’s no doubt that cars in Malaysia are ridiculously overpriced. Thanks to additional taxes such as the import duty, excise duty and the Goods and Services Tax (GST), Malaysia is the second most expensive country to get a car, right behind our neighbour Singapore.

Do you know what you are paying for when you purchase a car in Malaysia? Is your car really worth the price that you are paying?

Here’s how you can drill down the price of a vehicle and get the best value of your money.

Taxes on vehicles

As Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.”

Vehicle prices in Malaysia are greatly inflated by taxes, from excise duty to GST. You will end up paying anywhere between 60% – 105% in excise duty alone, depending on the type of car that you get.

But is there a way around it?

Based on the Malaysia Automotive Association (MAA) duty structure, commercial vehicles do not get hit with excise duty, and as such there’s almost no tax except for GST.

Certain vehicles, such as the Isuzu D Max Z Prestige, are classified under commercial vehicles. What’s the difference between a non-commercial vehicle and a commercial vehicle?

Car
Mid-size SUV A
Mid-size SUV B
5-seater SUV
Isuzu D Max Z Prestige
Original Price
RM259,800
RM106,694
RM55,000
RM120,395
Tax (Import duty, excise duty & sales tax)
RM77,940
RM17,000
RM52,250
-
GST
RM15,588
RM6,401
RM6,435
RM7,223.70
Total
RM353,328
RM130,095
RM113,685
RM127,618.70

As there is no tax imposed on a commercial vehicle, the Isuzu D Max Z Prestige is priced less than half of what you’ll get from a mid-size SUV. Note that for you’ll also be saving RM77,940.

Also even though the 5-seater is considered cheaper by a smaller margin, it’s important to note that you’re paying RM52,250 in tax for the car, when the original price was only less than half of the purchase price. On the other hand, for the Isuzu D Max Z Prestige pick up, other than the GST, the car is priced similar to what you are paying for.

Malaysia duties and taxes on cars
Class/engine capacity (cc)
Excise duties
GST
VS
Class/engine capacity (cc)
Excise duties
GST
Commercial (Isuzu D Max Z Prestige) 
NIL


 
 
6%


 
<1,800
75%
6%
1,800-1,999
80%
6%
2,000-2,499
90%
6%
Above 2,500
105%
6%
Source: MAA

As for car insurance, effective July 1, 2017, insurers offering such products will consider more factors when they are underwriting your policy, thanks to a move by the government to liberalise the entire process.

So drivers could potentially receive higher or lower premium when they are purchasing or renewing auto insurance. This falls under the second stage of the Phased Liberalisation of the Motor and Fire Tariffs announced by Bank Negara Malaysia last year.

Currently car insurances focuses on the type and age of the car, the driver’s personal details such as age and gender, as well as the number of claims made, this includes the possibility of the whether the car is likely to be stolen or not.

The good news is, the Isuzu D Max is not on the list, which means you could potentially receive lower insurance premium.

Model
Number of stolen vehicles
1. Proton Wira
1,214
2. Toyota Hilux
595
3. Proton Iswara
552
4. Perodua Kancil
550
5. Proton Waja
538
6. Perodua Myvi
379
7. Proton Saga
318
8. Proton Satria
238
9.  Nissan Vannette
208
10. Honda Civic
200
Source: General Insurance Association of Malaysia (PIAM)

What about the features?

Of course, one of the most important steps of buying a vehicle is to compare the features available. There are many vehicles that come with a low price, but that’s because they also come with minimal features. Here are some of the factors you will need to look into:

Fuel efficiency

With the petrol prices fluctuating since we’ve adopted the managed float system, car buyers should take fuel economy of their vehicle into consideration before making a decision. One way to gauge that is to check the fuel economy of the vehicle.

Features
Ford Ranger
Isuzu D Max Z Prestige
Fuel efficiency
8.5L/100KM
5.06L/100KM
Monthly diesel cost for 1,000km per month*
RM184.45
RM109.80
*Based on diesel price of RM2.17 per litre

Based on the assumption of 1,000km mileage per month, the estimated fuel cost per month for the Isuzu D Max is a lot more fuel efficient compared to its competitor. This is due to the Isuzu unique engine proposition in fuel efficiency, which ensures you burn minimum fuel while still getting maximum performance.

Comfort and technology

Making sure your driving experience is smooth and comfortable is another factor to consider. Having enough space in the car for you to accommodate your family comfortably is important, as well as the quality of the seats matter as well. Although pick-up vehicles are known as commercial vehicles, it comes with plenty of space for five people and even has leather seats, ensuring quality comfort for every passenger.

The technology of the vehicle makes a big difference in the level of efficiency in how you utilise it too. Even something as simple as headlamps should also be considered as you would want the best lighting on the road for better safety and ease of driving as well. Isuzu D Max Z Prestige may be a pick-up vehicle, but it comes with extra features such as a multi information display as well as a touch screen audio system that would make driving efficient and simple as well.

Safety

Of course, the most important factor to consider is the safety features in the vehicle. Many vehicles can be affordable if you remove a number of safety factors, but this is one aspect you wouldn’t want to compromise for the sake of saving. Your safety should be of utmost importance, and paying a little more for additional and better safety features will always be worth it.

Airbags, anti-locking system (ABS) and anti-whiplash are all safety features you can look out for. The Isuzu D Max Z Prestige even has Traction Control System (TCS) that can help prevent loss of vehicle control by helping to monitor wheel speed of moving vehicle.

But remember: it is always value for money

The good news is, you don’t have to break your budget just get all the above features. The Isuzu D Max is fitted with all these features and is packaged at an affordable price. So you don’t need to blow a hole in your pocket or even compromise on safety and comfort.

A commercial vehicle such as a pickup is able to complement any lifestyle and coupled with its strength and durability, you are looking at a great option that has value for money.

So make every ringgit you spend on your car worth your while by opting for the Isuzu D Max Z Prestige. Book a test drive today! 

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