Cheap Car Malaysia: Top 3 Cars for Salary Below RM3,000

Owning a car does not always require having a luxury car. Whether you earn more or less than RM3,000 per month, a low-cost car can be sufficient. It is crucial to have some understanding of the comprehensive guide in selecting an affordable car that fits our budget. Otherwise, we risk overspending and exceeding our budget.

Don’t Drive Yourself into Bankruptcy, Avoid Overspending and Overcommitting When Buying a Car

It may come as a surprise that financing a car is one of the primary reasons why young adults face bankruptcy. When buying a car, it’s essential to consider your annual income. For example, if you earn RM2,500 per month, it’s recommended to look for a car priced at RM30,000 or below, which would be considered an affordable or budget car.

However, the affordability of a car depends on the individual’s financial situation. Those with fewer financial obligations can allocate more funds towards purchasing a car. Additionally, buying a brand new car is not always necessary as many people opt to purchase used cars because of their significantly lower prices.

Cheap Car Malaysia: How to Calculate Car Loan Eligibility

As mentioned earlier, the most suitable car price to purchase is based on our annual income. For instance, if your salary is RM3,000, your annual income is RM36,000. Based on this estimate, the appropriate car price for you to buy is within that range.

However, it’s not that simple. It doesn’t take into account your net salary after deductions like EPF, SOCSO, and other monthly commitments. These are crucial factors in obtaining a more accurate estimate of car prices relevant to your income.

For example, a person with a family and a salary of RM3,000 has different and higher commitments compared to a single person, such as a fresh graduate. Therefore, the calculation of the affordable car price that needs to be purchased is different.

Here’s the actual calculation method. Subtract mandatory deductions such as EPF, PERKESO, PSB, and so on. Then, calculate monthly commitments or expenses such as credit card loans, education loans, and so on if applicable.

For example, if the remaining balance is RM1,000, the monthly payment for a new car that is most suitable for your income is half of that balance. In this situation, the best installment payment for a budget car is around RM500 per month.

There may be questions about why only half of the balance, not the entire remaining salary balance? For your information, especially for university graduates, in car ownership, not only do you need to allocate expenses for car monthly installment payments, but also other costs such as car maintenance, tolls, petrol, and so on.

How to Calculate Car Loan Interest and Car Installments

The first step is to determine the values of your car loan amount, loan tenure, and interest rate, as follows:

• Loan Amount = A
• Loan Tenure = B (years)
• Interest Rate = C

Then, use the following formulas to determine the total interest, monthly interest, and monthly installment of your car loan:

• Your Total Interest = C/100 x A x B = X
• Your Monthly Interest = X / (B x 12)
• Your Monthly Installment = (A + X) / (B x 12)

For example:

Suppose you have a car loan amount of RM50,000 at an interest rate of 2.5 percent to be paid over five years.

• Loan Amount = 50,000
• Loan Tenure = 5 years
• Interest Rate = 2.5 percent
• Your Total Interest = 2.5/100 x 50,000 x 5 = RM6,250
• Your Monthly Interest = 6,250 / (5 x 12) = RM104.17
• Your Monthly Installment = (50,000 + 6,250) / (5 x 12) = RM937.50

Note that the above calculations are based on a flat interest rate for the full loan amount over the entire loan tenure. In Malaysia, most conventional car loans use this calculation method.

Top 3 Best Affordable Cars in Malaysia If You Earn Around RM3,000 Monthly

Here is a list of 3 new car models that can be owned with a salary below RM3,000 or if you have high commitments. Please note that the prices listed are on-the-road prices and do not include insurance.

1. Perodua Axia – From RM23,367

Perodua Axia is the newest and most affordable car that can be purchased in Malaysia. Starting from RM23,367 for the E variant up to RM41,427 for the highest variant, the Axia AV.

The offered colors are Sunrise Orange, Lava Red, Midnight Blue, Glittering Silver, and Ivory White.

One of the advantages of the Axia is that it is very easy to handle due to its small size. With its small size, it is ideal for fresh graduates who have just started working or individuals who have just obtained their driver’s license. Not only that, but the Axia is also known as one of the most fuel-efficient car models with an estimated fuel consumption of around 4.6 liters/100km. The most fuel-efficient car model!

Refer to the table below for detailed information on the Perodua Axia’s specifications:

The best variant of the Perodua Axia depends on individual needs. However, if safety is a top priority, the AV variant is the best choice due to its more complete safety features compared to others. This variant is equipped with Advanced Safety Assist (ASA) 2.0 technology, which consists of four basic functions: pre-collision warning, pre-collision braking, front departure alert, and pedal misoperation control.

This variant is also the only one that comes with a reverse camera, which is a convenience that greatly helps drivers, especially when parking. Not only that, the AV variant also offers more comfort features compared to others, such as audio control buttons on the steering wheel. If you like listening to the radio, these buttons on the steering wheel are very helpful. But if you don’t like it, it’s okay not to use them.

However, if you have a tight budget, the E variant is also adequate. As long as it can take you from one place to another safely. For additional information, you can click on this link to the official Axia website.

2. Perodua Bezza – From RM33,456

The price of the Perodua Bezza starts from RM33,456 for the G manual variant up to RM48,356 for the highest variant of Bezza, which is the AV. The Perodua Bezza car is also no less impressive on the road. Many young generations who have just started working choose the Perodua Bezza as their first car. But why? Is it just because it’s a cheap car? These are the advantages and disadvantages of the Perodua Bezza.

Advantages:

• Efficient fuel consumption
• LED headlights for all variants
• The cheapest sedan that offers AEB

Disadvantages:

• Steering column cannot be adjusted
• Poor driving and handling
• Low-quality infotainment system

Refer to the diagram below for more detailed specifications:

From what can be seen, Perodua offers the Bezza in two different engine types, namely the 1.0L and 1.3L. It is commonly known that the engine plays a significant role in the overall driving experience. For the 1.3L engine, it has an output of 94 hp which is higher compared to the 1.0L engine. This power is also able to provide comfort to the driver even when the car is fully loaded with passengers. Not only that, the 1.3L model also has an efficient fuel consumption rate of 4.5L/100km.

However, the engine is not the only factor in the decision-making process. Safety aspects also need to be given serious consideration. From the table above, the AV variant is seen to be complete with ASA 2.0 as an addition to various safety features available on the lower variants.

3. Proton Saga – From RM33, 954

The Proton Saga starts from RM33, 954.59 for the lowest variant up to RM41, 147.52 for the highest variant. Saga is always a popular choice as it is an affordable and comfortable car to drive.

One of the important features of all Proton Saga variants is its comfortable seats even for long journeys. For the driver, the steering wheel can be adjusted according to comfort.

What’s interesting is that all variants of this car are equipped with Bluetooth, from manual to premium variants. Refer to the chart below for more information on specifications:

If looked at carefully, the price difference is not significant for the additional comfort that is quite significant when compared between the regular automatic variant (Standard AT) and the extraordinary automatic (Premium AT). With only a price difference of about RM4k, buyers can get better safety and comfort technology.

In terms of safety, the Proton Saga Premium AT is equipped with Electronic Stability Control (ESC) System. This system is very important to prevent the car from skidding. It is definitely worth it if you want to get this Proton Saga as your first affordable car. The colors offered are Snow White, Armour Silver, Jet Grey, Rosewood Maroon and Ruby Red.

Which Car Is the One for You?

So, Perodua Axia, Perodua Bezza, or Proton Saga? The decision depends on you. But it’s important to remember that not only the monthly car price should be emphasized, but also the car maintenance cost. This is because the car needs to be maintained regularly to get optimal driving performance. However, with a new car, you can get a maintenance warranty offered by the dealer, usually for three to five years. However, if you get services from an external mechanic, the maintenance warranty will be automatically voided. Maintenance or repair costs outside may be more expensive or cheaper depending on the mechanic you go to.

Hopefully, it will be useful! Need to renew car insurance and road tax? Just renew with Qoala. Get the best car insurance with the Qoala platform. Easy and fast!