#79. Tips On Saving Money For Your Car

Learn How You Can Save $30,000 Off Your Car Purchase

One of the golden rules to great wealth is to lay off debt. Avoid debt like you see a poisonous snake. Debt is like a cancer to your financial health.

Would you like to pay for a 7 or 9 years loan on your car for over a thousand Ringgit every month? Think about it. How much money would you have left to save and invest? Without savings and investment, how would you grow your wealth? Debt steals your wealth.

Of course, you might be saying, "How can anyone buy a car without a loan in Malaysia?" Yes, car price is expensive in Malaysia. Petrol price is also expensive.

Buy a better car

Sheesh, you must be thinking. What is this guy talking about? Buy a better car? That would cost more.

Would you want to buy a brand new Japanese car and pay RM88,000? If you take a RM79,200 loan (with 10% RM8,800 downpayment) at 3% for 7 years, that will work out to RM1,140.86 a month.

Aren't you being suck into the debt game? Forever stuck in the 'I-am-broke' league. What's more, your car depreciates every year. You are losing money as fast as you pump the petrol into the car.

Yes, buy a really good car

screenshot from Motortrader

Now, before reading further, I am assuming that you can afford to buy a brand new Japanese car. If you can afford an RM88,000 car, look for other alternatives. Look at the picture above.

See? Get a nice used car like a Mercedes Benz or BMW. Get one at RM48,000 like the one shown above. You will immediately save RM40,000 (Did I say you can save RM30,000? Add another RM10,000 to that. Ka-ching.)

Hey, again you will be saying, this guy is nuts! The maintenance of this kind of car is expensive. Older cars have more used parts that you can get from 'chop shop' (kereta potong). Older cars do not have a lot of electronic parts like those you see today in modern cars. They are easier to maintain. Just check out the forum at MyBenz to get what I mean. The used Benz owners are saying that the car is easy and not costly to maintain. If you get a W124 model, those old E-Class Mercedes, it's even cheaper to maintain.

Most of all, the earlier owners of these cars, before they sold it off have maintained the cars very well. These cars were owned by rich people and they have the money to maintain it well.

Anyhow, search around for a well maintained car. Take your time to look for a gem. It's worth the money that you will be saving in the long run. Google around the net, look for tips on how to search for a good car. My blog is about saving and investing money. :-)

Now, what are you going to do with that RM40,000 that you have just saved? Invest it of course.

Link:
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