5 used cars on a salary of under RM 5,000. What's the minimum salary / monthly repayment needed?

Let’s get one thing clear about vehicle ownership. Buying a car and maintaining a car are two very different aspects of the proprietorship experience… and the latter is something plenty of us are guilty of not factoring into the equation which can then become an expensive sum.

Firstly, just because you can afford to, doesn’t mean you have to buy the most expensive car you can afford on your salary or budget… lambang ‘H’ be damned.

Secondly, pricier cars usually mean pricier maintenance as well. So, you’ve got to account for that and put some money aside for the usual scheduled maintenance and some unexpected repairs.

You might have heard of the assumption that you shouldn’t spend more than 30 percent of your net pay on your car’s monthly instalment but to be on the safer side, it’s better to lower that number to the 20 percent mark.

Nonetheless, it’s not that the former was cooked up out of thin air. In fact, the 30 percent figure should be inclusive of the funds being put aside for running costs.

In this context, running costs covers scheduled maintenance, insurance, road tax, tyres and any emergency repairs that might pop up.

Therefore, the best practice is for 20 percent of your salary to go towards the monthly instalments and a further 10 percent saved for running costs and such, brining the total car-related expenses to 30 percent of your net salary.

Here, we’ll take a look at 5 used cars that serve various needs and can be had with a net salary of approximately RM 5,000.

To purchase a used car, you’ll need to have the standard 10 percent down payment put aside and take into consideration the interest rates to calculate the monthly instalments. Fortunately, there are plenty of loan calculators online that make this a cinch.

So, let’s get to the list.

The humble/infamous Perodua Myvi

Love it or hate it, the Perodua Myvi is one of the most practical motoring appliances in the country. It’s capable of wearing many hats to serve the requirements of almost any Malaysian and as such, it commands a strong price in the used market.

Carcome has a huge inventory of pre-owned Myvis ranging from the second-generation G2 to the current third-generation G3.

For example, a final-year G2 model from 2017 would be turning 7 years old this year and the recommended variants to get would be the SE or Advance due to the equipment level. Pricing for them ranges between RM 39k – 44k.

Assuming the usual 10 percent down payment, you’ll be looking at figures below:

If you prefer the newer Myvi G3, Carsome has more than enough in their inventory as well. You’ll be looking in the range of RM 45k – 50k (Myvi H and above) for a first-year 2018 unit. Have a look at the extensive inventory of the Myvi that CARSOME is carrying here.

Interest rates for the newer Myvi sit a little lower, so you'll be looking at numbers similar to those below:

Also Read: Used Perodua Myvi G2 buying guide - Be a king on the road, from just RM 18k

Toyota Vios

Fancy a sedan instead? We’re betting a used Toyota Vios is definitely on your shortlist. There’s no reason not to consider the Vios, it’s another one of those do-it-all cars.

Hell, it has its own one-make race. So yes, it’ll even race car.

Used examples are aplenty and offer incredible value for money, giving you a practical B-segment sedan for just under the price of a new Myvi.

A solid bet to get is the third generation Vios, codenamed NCP150. During its lifecycle, it experienced many running changes that also included a new powertrain combo for better fuel efficiency.

The examples to consider should be between 2014 – 2019, depending on your budget.

As for the recommended variant, it’ll have to be the G variant due to it having all-round disc brakes, projector headlamps, keyless entry and push start button (standard in all variants from 2015 onwards), acoustic windshield, leather-wrapped steering wheel and 6 speakers.

The aforementioned new powertrain came in 2016. Although both engines displaced 1.5-litres, the older 1NZ-FE with single VVT-i and a 4-speed automatic was binned in favour of the 2NR-FE dual VVT-i with a CVT.

Also Read: Used 3rd-gen Toyota Vios - 1NZ-FE vs 2NR-FE 1.5L, maintenance costs and which is best?

Power and torque were negligibly lower in the newer powertrain but was supposedly 18 percent more fuel efficient. Additionally, stability control became standard together with the new powertrain.

Therefore, budget permitting, the 2016-2017 models would be ideal. If there's more on the table, you can go for the 2019 models with the revamped front fascia.

Currently, units prior to the new engine range around RM 42k – 52k. If you’re able to, the updated ones from 2016-2017 span RM 52k – 60k. Lastly, the 2019 ones go from RM 65k - 70k. You can have a look at the full Vios inventory on Carsome here.

Also Read: Used 3rd-gen Toyota Vios from RM40k - When you don't want a new Proton/Perodua

Proton Exora

If there’s a need for more seating capacity, you’ll probably be looking for an MPV. In this case, the Proton Exora should tick all the boxes.

Granted, it’s long overstayed its welcome, having been launched way back in 2009. But as far as high-roof MPVs go, this one’s well within the budget and running changes equals constant updates that’s allowed it to keep its head just above water.

In a rare occurrence of “newer not always being better,” the variant to get here would actually be one of the older trims for a little extra safety.

The 2015 facelift exercise of the Exora saw the introduction of a Premium and flagship Super Premium variant. Not only did they sound cooler, they also came with 4 airbags and stability control (ESC).

When the 2017 refresh exercise came about, Proton blundered by deleting the 2 side airbags in the name of cost-cutting, meaning all variants from then on only had dual airbags.

Coming across a 2015 Exora Super Premium can be tough but if you do, expect to pay around RM 32k – 34k for it. Currently, there's a sole Super Premium trim for sale on Carsome among other variants as well, check them out here.

Also Read: Review: 2019 Proton Exora, old car with new tricks, still good enough?

Nissan X-Trail

Criminally underrated, the Nissan X-Trail often gets the short end of the stick during conversations regarding C-segment SUVs. Not that we spend much of our free time debating SUVs but if we did, the Nissan certainly wasn’t afforded a fair share of the limelight.

It’s one of the few in its class that offers a third row with a 5+2 configuration but at the expense of being a little barebones and only coming with dual airbags. That aside, it’s huge, practical and returns impressive fuel economy.

What more could you ask for in an SUV?

Additionally, with SUVs being the flavour of the month, many of the popular models tend to hold strong resale value. Hence, being unappreciated means that used prices for the X-Trail work in your favour.

You can find 2016 – 2017 models going for RM 63k – 70k on Carsome and you can browse through them here.

Also Read: Pros and Cons: Nissan X-Trail – An overlooked SUV

Honda Jazz

Yes, yes… we know we said lambang ‘H’ be damned earlier but the Honda Jazz is impossible to ignore in this price range.

After all, it was the best-selling non-national B-segment hatchback during its time and is still very much a fantastic motoring proposition and one of the true all-rounders.

It was spacious, sipped fuel, could be configured in multiple ways with those Ultra Seats and handled well.

The third-generation Jazz GK is the one to look at as relatively new 2018 or after models are well within the budget.

Money permitting, you should go for the flagship Jazz 1.5V variant as it had the full 6 airbags. Pricing ranges between RM 68k – 72k. If that’s a little over your budget, older 2016 models go for around RM 60k with the same specifications. Check out some examples of a used Honda Jazz here on Carsome.

Also Read: Used Honda Jazz (GK) - from RM 40k, last of its line hatchback, how much to maintain and repair?

Conclusion

Before we wrap everything up, we’ll come clean regarding some of the liberties and assumptions taken during our time with the office abacus to come up with these numbers.

1. Your eyes aren’t deceiving you, the minimum net salary is on the high side as we recommend the monthly instalment account for nothing more than 20 percent of your take home pay.

You’ll definitely have a good shot at getting approved for a hire purchase loan for a pricier used car or with a higher monthly payment but we do not recommend it.

That would be stretching your spending unnecessarily and here at WapCar, we recommend practicing financial fiscality and keeping your commitments low towards a depreciating asset is the smart thing to do.

2. For cars above 7 years old, some financial institutions might require a higher downpayment such as 15 or even 20 percent. It’s a double-edged sword because if you can fork out the extra money, you’ll be left with a smaller loan but if you can’t, then options get limited or you’ll have to consider a more affordable used car.

Furthermore, the bank might even ask for a guarantor, especially if it’s your first time applying for a loan.

3. Bear in mind that you’ll still be committing around 30 percent of your net salary towards your car, just that the extra 10 percent is set aside for running costs.