Don't Fall Into The Debt Trap
Previously, on another earlier article last year, I have mentioned about not buying new car. I have been thinking of changing my 10 year-old Proton for some time. There are a few reasons why I wanted to change it. But I won't discuss it here. Hehe.
Putting my money where my mouth is, I bought a year 1986 Mercedes-Benz 190E 2.0 Auto. The picture above is that car.
It's only at RM14,500. And I have budgeted another a few more Ringgits to make it a nicer and safer ride. I have added in a reverse sensor (very important if you have kids in your family or around the neighbourhood).
Well, I made a calculation. If I were to buy a new MyVI and take a loan, I will be paying way, way much more upon paying back the loan (7 years). Well, a used Japanese car at RM14,500 should be alright too. However, I prefer the 3 pointed star brand. Just personal preference. I did think about getting a Jap but can't get a model that has the wow factor.
Finally, my friend was selling one! I was also surprised that I can readily get the replacement parts (new parts even) without much hassle. There are two friendly forums on the net in Malaysia for Benz owners. Merzclub.org and MyBenz.org. A lot of knowledgeable and helpful people in those forums providing advice too for newbies who have just started owning the cars.
So, now I have a ride that is fantastic. I am smiling everyday when I drive it. The money that I have saved on the loan and the monthly repayment can be paid for maintaining the car and pay for the slightly higher fuel consumption. It's slightly higher fuel consumption compared to my old Proton. Perhaps I need to take it to my mechanic to see if anything can be done on the car to improve the fuel consumption.
I was told there should not be any much major repair on the car. As long as we maintain and service it regularly. Of course, the regular wear and tear parts surely need to be replaced from time to time, but are not more costly than some local cars. You just got to know which shop to go to.
Some people may say I am rich to drive a Benz. Well, not at all. On the contrary, I am driving this because I am poor. I can't afford the monthly loan installment on new cars. Just can't bear to do it again after the experience with buying a brand new Proton 10 years ago and taking out a 7-year loan.
Anyway, the point that I want to say here is, don't get into debt. Especially on buying cars. I know a lot of people are stuck in the slave game because they have loans to pay for houses and cars. The road to financial freedom is when you have set yourself free from all debts.
5 comments:
Car is an expense, so I will try to avoid or reduce it. If I am single, then it is another story :-)
so u didn't make use of the 5000 car incentive program then ? nice car btw.
Agree. I paid off my car in 3 years and it's now 8 years old and still looks rather new. I maintain it well and suppose can use it for another 8-10 years maybe. Save me so much money ... can't imagine taking out another loan for a new car. After all, a car is just for getting from point A to point B. But if we are super rich, then that's a different story lah. ;-)
Did you pay by cash? Wouldn't it be good if you use that money for investment?
Of course if your previous car gave you a lot of problems and maintenance fees is high, it would be better sell off the car and get another better one.
Btw, your car looks great :)
CK,
Thanks for your comment on the car!
I sold off my old Proton and top up a few more Ks to buy it. The old Proton was giving me the full symphony orchestra each time I go over rough roads and I hated it.
Michael Tsen,
No, didn't make use of the 5000 car incentive. I sold the old Proton for double that amount (10.3K).
Anyway, I just smile when friends around me complain about not having enough money to spend because they have to pay for house loan, bills and car loan. At least I don't have to worry about car loan. And these friends are so proud to show off their new cars. Why, I am thinking, they have to sacrifice so much of their monthly income for a car?
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