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Car Buying Guide: The True Cost of Car Ownership ( 2017-04-07 )

Buying a car is an expensive investment, car buyers have no idea they are probably spending way more than they think on their new car. The longer you drive, the car depreciates more. It is always better for one to find out how much a car would cost in order to manage the budget for savings. Reality check, here we have 5 major costs of owning a car. To further examine the true cost of owning a new car, let’s look at the Perodua Myvi Advance and how much it will cost after 5 years of driving.

Finance charges

Buying a new car requires 10 percent of down payment. The interest amount that one has to pay varies with the loan tenure and loan amount. The optimum rate one can look out for is to have shorter loan tenure (Preferably 5 years) and lower loan amount (lower monthly instalment). Besides, one can also look up on the special schemes offered by different banks in order to make the most out of their monthly budget.


With the newly introduced weekly fuel price in April 2017, the fuel retailers are able to determine the ceiling price as announced by the government. As of second week of April, RON 95 will be priced at RM2.16 per litre (+RM0.03), RON 97 will be priced at RM2.44 per litre (+RM0.03) and Diesel will be priced at RM2.08 (-RM0.03). Fuel efficiency varies with the type of cars, smaller hatchback cars consume less fuel than SUV. Driving behavior is one of the many factors that contributes to fuel economy. Drivers can refer to fuel saving tips to learn how to spend less for more mileage.


Insurance protects drivers against claims made by those who have suffered personal injury or damage to their car. No Claim Discount (NCD) is offered to car owners that have not made claimants within a year or more. The longer the car owners do not make claims, the better discount one can get. All the insurance company premium is the same as it was governed by the Bank Negara. However, bear in mind that there will be additional charges for windscreen protection insurance. Driver can name the two drivers for free, naming any additional drivers under the motor insurance will charge RM10 per person.


The depreciation rate of a new car is usually highest in the first few years of purchase, on average, a new car depreciates by 16% the minute it is being driven off from the point of collection. As the years go by, the depreciation cost increases which representing the loss in value of your car over its useful life. Besides, a car depreciation rate is based on the car brand, model, total mileage and the condition of the car. If you are planning to change a new car within 2 years, it is recommended that you purchase a used car instead.

Running Cost

The running cost of a car includes maintenance and repairs, parking fees, tolls and etc. The running costs tend to increase from time to time. The parking fees can cost from RM100 to RM200 per month depending on locations. In addition, the maintenance fee costs higher as the car gets older. Vehicle parts such as car tires, brake pads, air and oil filter are the most commonly replaced car parts. Let’s assume that a driver spends RM2,000 on yearly maintenance for his new car.

The total cost to own a Perodua Myvi Advance is RM56,983 for five years. It is always important to dive down into all the potential costing and finding the best deal for your desired car. It is important to know that it is worth while to carefully plan out your monthly budget before purchasing a new car. 

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