Saturday 17 May 2014

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The truth about owning a car

Posted by Unknown at 10:23 pm
This is a very controversial topic, I would say. A simple question to raise to everybody. 

Is it good to own a car? Yes or no? 
My answer a is big NO.


 Can you believe it if I tell you, ever since graduated for more than half a decade...I have not own a car yet. 

Yes, I know I know....you probably reason out saying that you need car because you need it to travel to work. You need it because its more convenient. You need it because its part of life. 

I understand, and I have to agree some people were forced to own a car because of travel distance to work. Thanks to our atrociously, shamelessly poor Malaysian public transport infrastructure. Now many of us need to own a car and owe for debt. A very bad debt.

My piece of advice, if you do not need to own a car, never buy (ohh....i mean borrow loan) for a car! NEVER!  

If you were meant to enjoy life and have car for fun and life, then this post isnt for you anyway, because its all about cost saving. 

Here's my 5 reasons why you should not own a car:-

  1. Car is a bad debt. The moment you bought your very first car, the price of the car immediately drop.
  2. You don't just pay for car instalment. You pay for your car insurance, car petrol, and car maintenance.
  3. If government raises petrol price again, your expenses gradually increase, because your car needs to feed!
  4. Car instalment loan interest rate is fixed. No matter how much more outstanding you owe the bank, they still charge you the same interest rate. Means bank already earn your money very beginning.
  5. Tendency to hangout is higher. What is the point if you own a car and you don't drive out? So it means hangout more, spend more, and save less money. 
I don't mean that forever you should take lrt or bus anywhere else. It sucks if you were forced into such situation your whole life. (Neither would I do that).

Here are 3 reasons when you should own a car:
  1. When you are able to pay a lot more downpayment or pay by cash. The lesser you owe the bank the better, because interest rate is fixed. You don't want to let bank take your money away!
  2. Your car helps you to earn MORE money. Yes is true. Own a car if it helps you to earn more money despite car insurance, petrol and maintenance.
  3. Your lifetime commitment is lesser. You own a house, paid off clean, or rented out for passive income. Your business is taken care of. You have very little commitment...then car is no problem for you.
Yes some people can have many other reasons to own a car. A status, glamour, show off, reputation, etc, etc. Common isn't it? Not unfamilliar. 

No wonder Malaysia's car ownership is the THIRD highest in the world. 

Feel proud? Hold on...you should read this one below. 

It says that Malaysian car is second most expensive in the world. Its ashamed if somebody wants to own a car because they want glamour and willingly spend so much money for a high-end car. And struggling to dig his/her pocket to pay off loan.

"My advise, PLEASE don't buy a car if you can't afford or do not need one. "

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