8 Tips for First-Time Car Buyers in Malaysia

Here are 8 essential pieces of advice for those purchasing their first car in Malaysia.

1.Determine Your Motivation for Buying

Before diving into the car-buying process, it’s crucial to understand why you want to make this purchase. Clarifying your motivations provides insight into your decision to buy a car.

While some may argue that owning a car is a financial liability rather than an asset, it can still significantly enhance convenience, particularly for daily commuting. Additionally, owning a car opens up opportunities for income-generating activities such as entrepreneurship or employment.

Here are a few key questions to ponder before committing to a car purchase:

• What is the primary purpose for needing a car?
• What specific features do I prioritize in a car? (e.g., built-in GPS, seating capacity, speed, safety features)
• What is my current financial situation? (consider monthly budget, credit score, etc.)
• Can I comfortably manage the associated expenses? (e.g., petrol costs, insurance, maintenance)

2.Establish a Budget for Your Purchase

Similar to many first-time car buyers, you’re likely contemplating taking out a loan to finance your new vehicle. It’s important to understand that the size of your down payment directly affects your monthly installment amount.

If you wish to avoid the burden of hefty monthly payments, assess your financial situation to determine if you can afford a larger initial deposit.

Additionally, it’s wise to adhere to the 20/7/20 rule when budgeting for a car loan. This guideline suggests making a 20% down payment, opting for a 7-year loan tenure, and ensuring that your monthly installment does not exceed 20% of your monthly income.

3.Ensure You Test-Drive the Car

Test-driving a car is crucial because, like people, cars vary in shapes and sizes, and finding the right fit for you is essential.

When test-driving a car, consider asking yourself these questions:

• Are you comfortable with the car’s functionalities, such as the steering wheel and brakes?
• Do features like windows, mirrors, key fobs, and other mechanical parts operate efficiently?
• Can you comfortably handle the size of the car?
• Is the driving experience smooth and stable?
• Are there any unusual noises or rattles when turning or making a U-turn?
• Does the transmission shift gears smoothly?
• Is the car comfortable for both slow and fast drives?

Prioritize your comfort and safety during the car-buying process to ensure confidence on the road.

4.Secure Car Insurance

In addition to being a legal obligation in Malaysia, car insurance is a fundamental aspect of driving; it transcends mere compliance with the law.

For most first-time car owners, the potential financial burden of damage to the vehicle, personal injury, or third-party involvement in an accident can be daunting.

Etiqa Motor Insurance provides coverage for third-party bodily injuries and vehicle damage, offering peace of mind on the road. Moreover, Etiqa offers a dedicated 24/7 hotline for assistance, including free towing up to 200KM.

Car insurance serves as a safety net for first-time drivers, ensuring that your vehicle is protected and providing reassurance while driving.

5.Understand the Car Buying Process

Once you’ve identified a car that meets your requirements and have test-driven it, you can confidently proceed with the purchase.

The car buying process in Malaysia typically involves three main steps: selecting your desired vehicle, preparing the necessary documents for the car dealer, and obtaining car insurance.

When purchasing a car for the first time in Malaysia, you’ll need to provide the following documents:

• NRIC
• Valid driver’s license (a prerequisite for purchasing a car)
• The most recent three months’ payslips
• The most recent three months’ bank statements reflecting your credit
• Income tax or Employees Provident Fund (EPF) statement

The salesperson will assist you in processing these documents and facilitating the delivery of your car.

6.Familiarize Yourself with Maintenance Needs

Maintaining your car is crucial to ensure it’s in optimal condition for the road. Following the manufacturer’s recommended service schedule or consulting a trusted mechanic is advisable.

Here are a few DIY maintenance tasks to keep your car well-maintained:

• Monitor engine oil levels
• Assess the functionality of your brakes
• Inspect tire conditions for signs of wear
• Listen for unusual sounds from the engine and brakes while driving
• Be alert for sudden jerks or movements

Additionally, always request a comprehensive check-up from your mechanic during workshop visits.

7.Understand Road Accidents and Emergencies

In addition to educating yourself about car maintenance, understanding road emergencies is essential for vehicle owners in Malaysia.

Owning a car comes with inherent risks, so it’s crucial for drivers to be well-prepared for road accidents. Here are some important tips to remember:

• Quickly assess all parties involved in the accident, prioritizing treatment for individuals with life-threatening injuries.
• Stay vigilant for physical dangers such as traffic and potential hazards from the vehicle itself. Move away from the vehicle if necessary.
• Keep an emergency kit or first-aid kit in your car at all times to handle unexpected situations.
• Maintain a set of tools in your vehicle and ensure you know how to use them effectively.
• Keep Etiqa’s 24/7 emergency road assistance contact information on speed dial for quick access during emergencies.

8.Understand Your Driving Limits

Whether you’re a novice or an experienced driver, it’s essential to recognize your driving limits and prioritize safety for yourself and your passengers.

For instance, if you’re not comfortable with long interstate drives, especially during early mornings or late at night, it’s best to avoid taking unnecessary risks.

Allow yourself time to adjust to your new car and always abide by road laws. To ensure a hassle-free driving experience with your first car, make sure to get it insured and hit the roads worry-free.

These are eight helpful tips for first-time car buyers in Malaysia. Purchasing your first car is an exciting milestone, but it also comes with significant responsibilities. Equip yourself with automobile and road knowledge to ensure your safety on the road.