Axia Owners ARE Malas

11:52 PM


FB post on Perodua Axia
I do agree that Axia owners are lazy. MALAS.


Malas to pay high monthly installments,
Malas to pay high road tax,
Malas to work more for JUST a car,
Malas to queue up for cheapER petrol whenever the prices suddenly naik.

I would LOVE to be malas. But the problem is I can't buy an Axia. I can't fit comfortably in most of Perodua's cars. The last time I drove from KL to JB in a Kelisa, I had cramps all over my body for a WEEK!

Let's compare between buying an Axia and a Vios. Assume I am a single professional in KL earning RM 5000 per month. Rental for an apartment is RM 1500, food, utilities and other provisions is another RM 1000. I am left with RM 2500. Most Malaysians agree that in Malaysia, having a car is a necessity instead of a luxury. Its quite difficult to get around with the current public transport system.

I'll use iMoney's loan comparison as a guide.

Axia 1000 SE Automatic Metallic

Have to use Viva's as Axia is not available

Axia:
Price: RM 40,200
Financing at 2.95% interest for 5 years: RM 765
Cost for 50km trip: (50km / 20.1 km/l ) x RM 2.30/l = RM 5.72
Cost of going to work per month: (5 days x 4 weeks x RM 5.72) = RM 114.4
Savings in a month: RM 2,500 - (RM 765 + RM 114.4) = RM 1,620.6

Vios 1.5 J Automatic

Vios financing at 2.7% interest


Vios:
Price: RM 77,313
Financing at 2.7% interest for 5 years: RM 1,457
Cost for 50km trip: (50km / 14.3km/l) x RM 2.30/l = RM 8.04
Cost of going to work per month: (5 days x 4 weeks x RM 8.04) = RM 160.84
Savings in a month: RM 2,500 - (RM 1,457 + RM 160.84) = RM 882.16

If I drive an Axia, I can save RM 1,600 into my savings account per month. After 24 months, I have enough savings to pay for a down payment of a RM 360,000 apartment. Ridzuan Condominium in Sunway seems like a good buy.

Random search on PropertyGuru
Do I stay there myself? No, I rent it out for RM 1,800. My cash flow (Rent - loan servicing; RM 1,800 - RM 1,520) would be RM 280.

Random search on PropertyGuru

Home loan comparison from iMoney.my


Now I am LAZY. I just sit around at home, work as usual and at the end of every month and I get a bit  MORE money. I can use that money to either pay off my hire purchase faster or save it to get another apartment.

The conclusion is, I CAN be malas when I drive an Axia as I can have a positive cash flow from my investment.

Of course, these are all theoretical. I haven't even factored in inflation rates and RM 2,500 might not be enough for some. Furthermore, buying a property is more than just having enough money for down payment there are stamp duties, legal fees and maintenance fees to pay. But the point is;

A CAR IS NOT AN ASSET. The price won't appreciate and you will have to splurge more money as it gets older.

MOfrust

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1 comments

  1. Yes car is not an asset. House can be either your asset or liability. Let's together towards financial literacy and become sophisticated investor.

    ReplyDelete

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