Everyone loves the thought of being the proud owner of a brand new car, but the one thing that some fail to realise is the huge financial commitment that comes with purchasing a car.
A man learnt this lesson the hard way after he found himself straddled with debt not long after he bought a car which cost more than his monthly income.
M’sian man regrets buying RM100K car with RM4K salary
Speaking to Harian Metro about his poorly-thought out decision, the private sector employee, who only wished to be known as Mohamad, said he bought a new Honda Civic which cost more than RM100,000 for a rather foolish reason.
I thought that by buying this Honda Civic, I could show it off to my friends. But the opposite happened. After I bought the car, I realised I couldn’t afford to cover my other monthly debts.
The 26-year-old went on to reveal that he only earned RM4,000 a month, meaning that he had gotten himself into a financial rut by purchasing a car that was more than 20 times his salary.
“I thought buying a car worth more than RM100,000 was okay. But because I live in Kuala Lumpur, my RM4,000 salary isn’t on par with the car’s retail value,” he lamented.
Aside from paying for the car’s insurance, road tax, and servicing, Mohamad added that he also has to pay for other expenses such as rent, parking fees, personal insurance, toll, and food.
To make matters worse, he admitted that he had used a credit card to pay for his monthly debt payments, further worsening his current situation.
“Sometimes when I can’t pay, I use a credit card to cover the monthly expenses. I feel the decision (to buy a car) was the wrong decision as it forced me to restructure my debt,” he said.
Remember, buying a car may sound good at the beginning, but make sure you’ve counted the cost before handing the money to the car salesman!
READ ALSO:
