Undoubtedly, transportation is a necessity. Indeed, some people need a car as a major carriage. But, before having a car, understand this philosophy.
“Buy a car is not wrong, but buy a car beyond its ability to charge it is wrong”
This year 2019 can be said to be the year of the car, as many launches of the new car Malaysia have been and will be done. Among the ones that have been launched; Perodua Aruz, Proton Exora Facelift, Mitsubishi Triton and many more.
So, how to make sure the purchase of a car is not a burden? Can follow the following car formula formulas:
1. Annual salary formula
The first formula, make sure the purchased car price does not exceed the amount of salary a year.
Suppose a young graduate who is just starting to earn a salary of RM 3,000 per month, so the total salary is RM 36,000 (RM 3,000 x 12 months). The car that he was supposed to buy was a car worth less than RM 36,000.
Why a year’s salary? Well, let’s say he wants to use his ‘qualifications’ and plan to buy a Proton Saga car for RM 36,000. Less a deposit of 10% (RM 3,600), the remaining RM 32,400 is paid on bank financing.
If you refer to the estimated car financing payment, then your monthly instalment amount is around RM 480 / month for a period of 7 years, which is approximately 16% of the monthly salary.
2. Formula 20: 5: 15
This formula may be more stringent than the first formula. 20: 5: 15 refers to 20% of deposits, 5 years of funding/loan and 15% monthly instalments of monthly income.
How to calculate the price of a decent car purchased? Can see the following simple calculations for those who earn RM 3,000 a month.
For a monthly installment of 15%, the total is 15% x RM 3,000 = RM 450
Then the price of a decent car purchased (estimated car loan / car loan rate = 3%): (RM 450 x 60 months) + (RM 450 x 60 months) (5 years x 3/100) = RM 31,050
Yes, with a salary of RM 3,000, the price of a car worthy to be purchased with a 5-year financing/loan period is around RM 31,000 only.
Furthermore, a 20% deposit is required to be RM 6,200 to make the total financing/loan required to be RM 24,800.00
The above calculations are a simple calculation to determine the estimated car prices that can be purchased with the formula 20: 5: 15, which can be used for other payroll values. More accurate estimates need further calculations and refer to the bank