RENT CAR VS BUY CAR
There are tonnes of arguments over why one should buy a new car versus renting a car. So, we decided to offer our two cents here. A quick one, maybe.
A lot of Malaysians can relate to this, especially with the worsening traffic jam and with the spaces where we reside are getting cramped
We will start with the pros of buying a car:
- The convenience of travelling any time we need. Salesperson needs this, anyone who has to meet clients for business for a routine needs one.
- Symbol of financial capability. Let’s face it. How many of us start buying cars due to peers’ pressure?
Cons about owning a car:
- Financial burden: monthly car instalments and maintenance cost. In a speech, Finance Minister II Johari Abdul Ghani said Malaysians spent 14.6 percent of their income on transport. A simple calculation based on total cost of ownership of owning a car like Perodua Axia (one of Malaysian most affordable cars) will look like:
- loan repayment of RM480 per month, plus..
- oil change & service of RM100 x 4 times a year, plus..
- fuel consumption of RM200 per month, plus..
- insurance fees of RM1000 per year, plus..
- parking fees of RM150/month at your residential premises, plus..
- wear and tear cost (tyres, repairs, etc).
We estimate the cost of owning an entry level car can easily chip away RM950 per month, close to 20% of your earning assuming RM3000-4000 range of income.
- Parking can be a problem in our neighbourhood, especially those with more than one vehicle per family.
Pros about renting a car:
- Relief of financial burdens of paying monthly installment and maintenance,
- Freeing up the parking space in KL, you are doing a noble cause by not contributing to the congestion statistics on the road. Remember the last time you were stuck in a Jam-so-long-I-can-spread-it-on-my-bread,
- Contributing to the environment betterment. According to Paul Tan, Malaysians seems to be big fans of owning cars. Each year approximately 600,000 new cars are sold. If we divide this by our population of Malaysia of approximately 30 million, 1 of 50 people in Malaysia are buying new cars every year. Car buyers are potentially contributing to 500,000 cars being dumped every year,
- Riding in the car that you desire for the special occasions. While most of us wanted an easy-to-drive car on a daily basis, sometimes we prefer a bigger car for certain needs, especially during major festive seasons for “balik kampung” travel or tour.
Cons about renting a car
- The need to make plan and make bookings as the desire vehicle might be hard to secure,
- The hassle of renting a car in Malaysia, limited by choice and booking method.
P.S: That was why we are here for you, click here to rent a car!