Same price tag. Very different monthly bill. I ran the numbers on loan, insurance, petrol & maintenance.
I earn RM4,000 a month and I finally need a car. Everyone around me had an opinion.
My parents said “just get a Myvi, cheap to maintain”.
My friend said “why buy a hatchback when a used Honda City is the same price and feels so much more atas?”
They were both kind of right about the sticker price. A new Myvi 1.5 X goes for RM50,900 on the road without insurance, and a 2019 Honda City typically lists at around RM52,000 on the used market.
So I stopped comparing prices and started comparing what each car would actually cost me every month.
First: how much car can RM4,000 afford?
A common rule of thumb is that your car instalment should not exceed 20% of gross monthly income. On RM4,000, that is RM800 a month, and that is for the instalment alone, before insurance, petrol or servicing.
Reality check
After EPF, SOCSO, EIS and a little income tax, RM4,000 gross becomes roughly RM3,450 to RM3,500 in your bank account. Every car cost below comes out of that smaller number.
The loan: where the two cars split
Banks treat new and used cars very differently.
In 2026, new cars typically get flat rates of around 2.30% to 3.50%, up to 90% financing and up to nine years.
A car that is five to ten years old typically gets 3.30% to 4.50%, only 60% to 70% financing, and a maximum of about five years.
| Loan | New Myvi 1.5 X | 2019 Honda City |
|---|---|---|
| Price | RM50,900 | ~RM52,000 |
| Down payment | RM5,090 (10%) | RM15,600 (30%) |
| Loan amount | RM45,810 | RM36,400 |
| Rate & tenure | 2.5% flat, 9 years | 3.8% flat, 5 years |
| Monthly instalment | ~RM519 | ~RM721 |
| Total interest | ~RM10,220 | ~RM6,850 |
So the used City needs three times the down payment and a monthly instalment about RM200 higher, but because the loan is shorter, it costs less total interest.
The Myvi is easier on your cash flow today.
The City is cheaper on interest overall, if you can survive the higher monthly payments.
New rule from June 2026
The Hire Purchase (Amendment) Act took effect on 1 June 2026 and abolishes the flat interest structure and the Rule of 78. Interest now follows a reducing-balance method, so settling your car loan early should save you more than it used to. Ask the bank for the effective interest rate (EIR), not just the flat rate.
Insurance, petrol & road tax
As a first-time car owner, you start with zero no-claim discount, so year one hurts the most.
For a Myvi 1.5, a comprehensive first-year premium is roughly RM1,000 to RM1,400. For a used City around RM52,000, I’m estimating a similar or slightly higher range, since the premium follows the sum insured. Road tax is RM90 a year for both 1.5-litre cars.
Petrol is basically a draw. Under BUDI95, eligible Malaysians pay RM1.99 per litre for RON95, with a monthly limit of 300 litres from 1 September 2026. Both cars return around 15 km/l in real-world driving, so 1,500 km a month is roughly 100 litres, or about RM199.
Maintenance: the hidden gap
Scheduled servicing for a Myvi 1.5 costs about RM3,370 over 100,000 km, and a new car comes with a manufacturer warranty.
A Honda City costs about RM3,880 to RM4,300 to service over the same distance, and a seven-year-old one is already past most warranty periods.
The bigger risk is wear and tear.
Once a City is out of warranty, the publish replacement costs include:
Shock absorbers: RM800 to RM1,400 per set
Often due somewhere in the car’s later years, depending on mileage and road conditions.
Engine mountings: RM650 to RM1,100 per set
Worn mounts mean vibration and a noisier cabin.
Lower arms & bushings: RM450 to RM750 per pair
Plus battery, tyres and brake pads, which any car needs.
The real monthly bill
| Per month (estimate) | New Myvi 1.5 X | 2019 Honda City |
|---|---|---|
| Loan instalment | RM519 | RM721 |
| Insurance | ~RM100 | ~RM110 |
| Road tax | ~RM8 | ~RM8 |
| Petrol (1,500 km) | ~RM199 | ~RM199 |
| Servicing & wear set-aside | ~RM75 | ~RM165 |
| Total | ~RM900 | ~RM1,200 |
| Share of ~RM3,500 take-home | ~26% | ~34% |
That excludes parking, tolls and a car wash. On RM4,000, the City would eat a third of my take-home pay. The Myvi still takes a quarter, which is a lot, but it leaves room to save.
The conclusion
On a RM4,000 salary, the new Myvi makes more sense for most people. It needs RM10,000 less upfront, costs about RM300 less a month, and comes with a warranty.
The used City wins on space, comfort and total interest, but only if you already have around RM15,000 for the down payment plus an emergency fund for repairs.
Pick the shortest tenure you can afford
A seven-year Myvi loan is about RM639 a month but saves roughly RM2,400 in interest versus nine years.
Going used? Inspect before you sign
Get an independent pre-purchase inspection and check the service record. Budget for tyres, battery and suspension in year one.
Keep a car repair fund
Even RM100 a month set aside means a surprise repair does not end up on a credit card.
On a RM4,000 salary, the Myvi is the more manageable choice. Look beyond the instalment, choose a loan tenure you can comfortably afford and keep a repair fund.
If you’re buying used, get an independent inspection before signing.
