{"id":30003,"date":"2017-06-19T09:46:28","date_gmt":"2017-06-19T01:46:28","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=30003"},"modified":"2024-01-31T11:17:25","modified_gmt":"2024-01-31T03:17:25","slug":"beat-costly-car-ownership","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/beat-costly-car-ownership","title":{"rendered":"Beat The High Cost Of Car Ownership With These Tips"},"content":{"rendered":"

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The campaign has ended!<\/div>
Stay tuned for more MINI campaigns in the future. For information on MINI Financing, please visit http:\/\/www.mini.my\/financing\/about-financing\/<\/a><\/span><\/div><\/div>\n

What influences you to purchase a new car? According to an Asean NCAP survey<\/a>, 27% of Malaysians chose price as their number one factor, followed by safety at 19% and fuel economy at 17%.<\/p>\n

Only a tiny 2% said cost of maintenance and service were the main factor that influences their purchasing decisions.<\/p>\n

Cars are a big deal over here. Malaysia has the highest incidence of multiple car ownership globally<\/a> with 54% of households having more than one car. A survey also found that we are among the top five countries who view a car as a status symbol<\/a>.<\/p>\n

But is this attitude toward private auto ownership a financially savvy one? Here are a few main factors that drive the cost of car ownership up, and how you can manage it better.<\/p>\n

<\/span>The depreciation factor<\/span><\/h2>\n

Car is an asset that depreciates over time \u2013 that is an undeniable fact. Some car\/insurance portals<\/a> believe that the moment you drive your new car off the lot, it would have depreciated as much as 11% of its value.<\/p>\n

Let that sink in a moment.<\/p>\n

That means, say, if you purchase a car at RM190,000, it will lose as much as RM20,900 in value just by simply driving it home.<\/p>\n

Of course, depreciation does not continue at this rate. On average it is estimated that a new car will lose as much as 19% of its value during the first year of ownership. So your RM190,000 car will be worth about RM153,900 after just one year.<\/p>\n

But the depreciation rate decreases significantly with each successive year.<\/p>\n

Check out this chart to see how a car may decrease in value over the first five years.<\/p>\n

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Although cars will surely depreciate (unless it\u2019s a classic car), there you are steps you can take to minimise the depreciation. The easiest way to manage depreciation is to choose a car that has low depreciation rate.<\/p>\n

Some of the cars that are worth buying, especially if you are wary about depreciation, is the MINI with their new financing package, Full Circle.<\/p>\n

<\/span>The maintenance factor<\/span><\/h2>\n

Depreciation is just one piece of the car-ownership puzzle. Although only 2% of Malaysians car buyers are concerned about the cost of maintenance, it is undeniable that maintaining a car can burn a hole in one\u2019s wallet.<\/p>\n

You are looking at a few hundred ringgit every few thousand kilometres, depending on which service centre you visit.<\/p>\n

This is especially true for older cars, because you will have to replace a lot more parts as the car ages, hence, it is important to do it right from the beginning.<\/p>\n

Choose a car that has a lower cost of maintenance. According to Your Mechanic<\/em><\/a>, a MINI is one of the cheapest car to maintain. Ranked at number 25 out of 30 in the most expensive car maintenance list. This makes it the top five cheapest vehicles to maintain in the US.<\/p>\n

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Source: <\/em>Your Mechanic<\/em><\/a><\/p><\/div>\n

To drill down a little deeper, a MINI maintains a below average cost of maintenance in the first five years. The cost only inches up significantly from the seventh year onwards.<\/p>\n

Which bring us to the next point\u2026<\/p>\n

<\/span>Is there a better way to car-ownership?<\/span><\/h2>\n

Owning a car these days is easy, but maintaining a car is not. So, a financing plan that takes care of the hassle of maintenance does sound attractive!<\/p>\n

Let\u2019s say you want to purchase a MINI 3-Door Cooper at RM188,888 but don\u2019t want to pay the entire amount or want to go through the hassle of paying a 5-year loan and the maintenance costs that come with it.<\/p>\n

You can opt for the MINI Full Circle Programme. Here\u2019s how it works:<\/p>\n

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So this is the total you\u2019ll spend using this financing scheme:<\/p>\n

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After the three years, you are then offered these options:<\/p>\n