• Home
  • About Us
  • Guides

    Savings Calculator to calculate savings goals and basic savings projections

    Planning & Budgeting

    Investment Returns Calculator to calculate investment returns, investment comparisons and investment portfolio simulator

    Saving & Investing

    Guides to tackle financial debts in Malaysia for Free

    Tackling Debt

    Free Guides on Choosing and purchasing a vehicle in Malaysia

    Buying a Vehicle

    Free Guides on Purchasing a Home in Malaysia and avoiding crippling debt

    Buying a Home

    Free Guides On purchasing insurance in Malaysia safely

    Insurance

    Free guides to ensure a comfortable Retirement by planning your retirement

    Retirement

    All Guides Icon

    All Guides

  • Guides
    • Planning & Budgeting
    • Saving & Investing
    • Buying a Home
    • Buying a Vehicle
    • Tackling Debt
    • Insurance
    • Retirement
  • Calculators
  • Blog
  • Take Quiz
    • English
    • Bahasa Malaysia
    Have any questions?
    hello@multiply.org.my
    RegisterLogin
    MultiplyMultiply
    • Home
    • About Us
    • Guides

      Savings Calculator to calculate savings goals and basic savings projections

      Planning & Budgeting

      Investment Returns Calculator to calculate investment returns, investment comparisons and investment portfolio simulator

      Saving & Investing

      Guides to tackle financial debts in Malaysia for Free

      Tackling Debt

      Free Guides on Choosing and purchasing a vehicle in Malaysia

      Buying a Vehicle

      Free Guides on Purchasing a Home in Malaysia and avoiding crippling debt

      Buying a Home

      Free Guides On purchasing insurance in Malaysia safely

      Insurance

      Free guides to ensure a comfortable Retirement by planning your retirement

      Retirement

      All Guides Icon

      All Guides

    • Guides
      • Planning & Budgeting
      • Saving & Investing
      • Buying a Home
      • Buying a Vehicle
      • Tackling Debt
      • Insurance
      • Retirement
    • Calculators
    • Blog
    • Take Quiz
      GuidesBuying a VehicleWhat vehicle can you afford to buy?
      • Introduction 1

        • Lecture1.1
          Summary
      • Things to know 6

        • Lecture2.1
          Step 1: What other transport options do you have?
        • Lecture2.2
          Step 2: How do you choose between a secondhand car and a new car?
        • Lecture2.3
          Step 3: What are your upfront costs?
        • Lecture2.4
          Step 4: What are your recurring costs?
        • Lecture2.5
          Step 5: How much can you afford?
        • Lecture2.6
          Quiz: Buying a vehicle

        Step 4: What are your recurring costs?

        Use our calculator to help you calculate your monthly loan repayments! 

         

        Once you’ve worked out what you’ll have to pay upfront, next you’ll have to figure out your monthly costs.

         

        Monthly loan repayments

        To calculate the monthly repayment amount for your loan, you need to know:

         

        a) The price of the vehicle

        b) The interest rate of the vehicle loan

         

        Vehicle loan interest rates may sound low but they’re not actually that low since they’re calculated with flat interest rates. The interest you’re actually paying, or the effective interest rate, is almost double your flat rate! Always ask for the effective interest rate so you know how much you’re really being charged. (Currently, the flat interest rates offered by banks range widely from 2.5-10%.)

        For some banks, you can choose a vehicle loan with variable interest rate. This method calculates your loan repayments on a reducing balance method. In this case, the interest rate being charged to you will vary throughout the tenure of your loan.  Again, always check the Effective Interest Rate.

         

        c) The down payment you can afford to make

        d) How long you’ll want to take the loan for

         

         

        SCAM ALERT!

         

        There are many online financial lenders (some may also have physical offices) that will be happy to loan you money. But beware, their interest rates are significantly higher than that of the banks. Let’s take the lender below for example:

         

         

        Step 4: What are your recurring costs? 1 - Multiply -

         

         

        The motorbike they’re selling costs RM7,500.  Their offer is: Down payment: RM 550, monthly payment: RM 281 per month for five years. It looks good, right? And it sounds affordable…

         

        But is it really that cheap? How much will you actually pay? The calculation goes like this: RM550 + (RM 281*12*5)=  RM17,410.

         

        That is over 200% of the actual price of the motorbike (you can buy another new motorbike with the money you will spend paying the interest). Or around 43% per year in interest!

         

        Even their Plan B isn’t that cheap. It comes up to RM11,419 which is 150% more than the price of the motorbike.

         

         

        Step 4: What are your recurring costs? 3 - Multiply -

         

         

        So, always make sure you know how much you’re really paying for your vehicle (use our calculator) and don’t get taken for a ride. If you can’t afford the vehicle of your choice right now, it might be a good idea to wait a bit rather than get yourself into a lot of debt.

         


        Other costs:

         

        1. Road tax

        Make sure to also budget enough for your vehicle’s road tax every year!

         

        For personally registered cars in Peninsular Malaysia, the following road tax rates apply.

         

        Engine capacity (cc)

        Base rate

        Progressive rate (per cc)

        Road tax amount

        1,000 and below

        RM20.00

        –

        RM20.00

        1,001 to 1,200

        RM55.00

        –

        RM55.00

        1,201 to 1,400

        RM70.00

        –

        RM70.00

        1,401 to 1,600

        RM90.00

        –

        RM90.00

        1,601 to 1,800

        RM200.00

        RM0.40

        RM200.40 to RM280.00

        1,801 to 2,000

        RM280.00

        RM0.50

        RM280.50 to RM380.00

        2,001 to 2,500

        RM380.00

        RM1.00

        RM381.00 to RM880.00

        2,501 to 3,000

        RM880.00

        RM2.50

        RM882.50 to RM2,130.00

        3,001 and above RM2,130.00 RM4.50

        RM2,134.50 and above

        Source: JPJ documents

         

         

        So, if you were to get a car with a 1,600 cc engine, you’d have to budget an extra RM90 every year for the  road tax.

         

        1. Petrol costs, parking fees and toll charges

        Your vehicle’s fuel consumption is an important factor when buying a vehicle, so look for one with a lower consumption of petrol-per-kilometre to minimize your petrol costs. Parking fees and toll charges are also items that you’ll need to budget for.

         

        1. Maintenance costs

          Maintenance costs will depend on the vehicle itself. Important factors to consider when trying to reduce your maintenance costs would be the make and model of your vehicle, whether it’s new or secondhand, and how much you use it.

         

        1. Annual insurance premiums

        Don’t forget to also budget for your insurance each year. Check out our article on car insurance for more information.

        Prev Step 3: What are your upfront costs?
        Next Step 5: How much can you afford?

        Guide Categories

        • Planning & Budgeting
        • Saving & Investing
          • ETFs
          • Unit Trust
          • Stocks
          • Investing Basics
          • Fixed Deposits
          • Savings
        • Tackling Debt
        • Buying a Vehicle
        • Buying a Home
        • Insurance
        • Retirement

        STAGE OF LIFE

        • Student
        • Families
        • Working Adults
        • Retirees

        Latest Guides

        What Do You Need to Know About E-Wallets?

        What Do You Need to Know About E-Wallets?

        Free
        Personal Finance 101 for Self-Employed Workers

        Personal Finance 101 for Self-Employed Workers

        Free
        Introduction to REITS (Part 2)

        Introduction to REITS (Part 2)

        Free

        Don't miss out, join our mailing list

        newsletter-subscribe-multiply

        logo-multiply-learn-investing-for-free

        hello@multiply.org.my

        Information

        • Home
        • Blog
        • About
        • Contact

        Categories

        • Planning & Budgeting
        • Saving & Investing
        • Tackling Debt
        • Buying a Vehicle

        Categories

        • Buying a Home
        • Insurance
        • Retirement
        • All Guides

        Instagram Feed

        Ingin dapatkan perlindungan insurans/Takaful PERCU Ingin dapatkan perlindungan insurans/Takaful PERCUMA atau mampu milik? Layari https://multiply.org.my/my/blog/what-government-insurance-schemes-can-you-get/ atau klik link di bio untuk ketahui bagaimana!
        If you're filing your taxes manually, the deadline If you're filing your taxes manually, the deadline is coming up on 30 April 2021! Visit https://multiply.org.my/guides/tax-filing-101/ if you need help figuring out how to file your taxes!
        Have you subscribed to our YouTube channel yet? We Have you subscribed to our YouTube channel yet? We're at https://youtube.com/c/MultiplyMY, so be sure to subscribe to stay updated on our latest videos!
        Baca lebih lanjut di https://multiply.org.my/my/bl Baca lebih lanjut di https://multiply.org.my/my/blog/what-government-aid-can-you-get-if-youve-been-declared-bankrupt/, atau klik link di bio!

        Multiply by Creador Foundation.

        • Privacy
        • Terms
        • Sitemap

        Facebook Google

        Login with your site account

        17 + thirteen =

        Lost your password?

        Not a member yet? Register now

        Register a new account

        20 − five =

        Are you a member? Login now

        Language :

        • English
        • Bahasa Malaysia

        What's your spending style?

        Managing our spending can be tricky business. So tell us how you spend your money and we'll help you figure out how to make the most of it!

        1. How do you earn money?
        2. How were you managing your finances before COVID-19 hit?
        3. How has COVID-19 affected your spending overall?
        4. How did the movement controls (MCO/CMCO) affect your credit card spending?
        5. If you received Bantuan Prihatin Nasional (BPN) assistance, how did you use it?
        6. If you're taking money from your EPF account during the MCO/CMCO (under i-Lestari), how are you using it?
        7. The loan moratorium was helpful for me because:
        8. The holiday season is just around the corner. What do you have planned for year-end shopping?
        9. Have you planned your budget for 2021?
        10. How are you preparing financially for 2021?
        11. How do you think you'll manage your money in 2021?
        12. What do you think you need most to improve your finances in 2021?
        13. In 2021, my top financial goal is to:
        14. In 2021, my biggest financial worry is:
        15. In 2021, which areas of personal finance would you like to learn more about?
        clock.png

        Time is Up!

        Language :

        • English
        • Bahasa Malaysia

        Take our quizzes!



        What’s your finance personality?

        Latest


        What’s your spending style?

        Language :

        • English
        • Bahasa Malaysia

        Whats Your Finance Personality?

        Find out if you’re a Money Boss, Finance Cadet or a Finance Newbie by taking this quiz!

        1. It's the end of the month, you are thinking...
        2. Say you want to go shopping for fun, do you...
        3. So you crashed your car and it's going to cost RM1,000 to fix, you
        4. Your credit card statement is in and your reaction is
        5. After months of saving (see "sikit -sikit, lama-lama jadi bukit" really is true), you've got cash sitting in the bank. You then
        6. You're buying a new car (yes, imagine away - Toyota, Proton, or BMW). You take
        7. You are thinking of investing. What do you do...
        clock.png

        Time is Up!