When buying a new car, cash is always king

Here’s a question, when buying a new car, do you pay by cash or prefer the easier way of taking up a hire-purchase loan?

What may seem ‘easier’ to finance a car doesn’t mean its easier in the pocket because dont forget the extra cost (we call it interest rates) that jacks up the total price you pay to own a car. So, in today’s blog, let’s examine why buying a car with cold hard cash is better than hire-purchase.

It took days to count the cash, Mr. Zhao. Have to charge a fee for that!

This Chinaman (from China, no less) save every little loose change he got over the years to pay for a new van! Mr Zhao from Shandong province proved that cash is king for this new van because as a calculative businessman himself, he knew he could save thousands.

Full story of the thrifty Chinaman HERE.

On the Malaysian context, owning a car is very easy. If you have a clean financial record, getting a hire purchase loan will not be a problem if you can afford it. Affording it is by means having 1/3 of your income allocated for financing the car loan and you’re good to own your set of wheels.

If you would like to own an entry-level car but fed up of the boring Protons and Peroduas, how about getting a Suzuki Alto with prices starting from RM44,888.

Get ready a 10% downpayment or RM5000 and you could own a Suzuki Alto within 1 month with the colour of your choice for only RM580 per month. So, if you are earning at least RM1,800 monthly, good news, the RM580 qualifies as 1/3 of your salary!

Of course, better to test drive the Alto before making a decision. Low monthly payments for a cool, hip and trendy looking Alto, how does that feel?!

But then again, cash is STILL king.. haha..:D