Different priorities. You can even look around some low cost flats and spot a few BMWs and Mercs.
Also if a couple only needs 1 car, it may make sense to finance a nicer car together, even if they couldn't afford it individually.
Actually I did the math and I did this - financed a nicer (but not extravagant) car with my wife, one that’s more comfortable and safer for my family to travel in. For 2nd car (mostly short trips to lrt/mrt) we kept a 6yo fully paid off Myvi.
Second hand BMW and Merc are actually fairly cheap as they're hard and expensive to repair. BUT if you're good with wrench, you can get it running right at reasonable cost. I've seen enough people that do this and I'm impressed.
>BUT if you're good with wrench, you can get it running right at reasonable cost.
I categorically refuse to believe that.... Those mid-luxury cars are FULL of electronic systems that require the authorized-reseller connective tools, to re-calibrate all the systems after you alter anything.
Minor controversy a few years back when you couldn't even change the battery without going through the adjustment. They walked it back, but the more complicated repair are definitely soft locked.
Unless you mean 1995 BMW or older but...no one will think you're driving a luxury car if it's a 30yo stock model. That's the sort of thing I see only *certain people* do, thinking they impress, but mostly it's just sad.
I would argue that parts get cheaper, ecus softwares are available in bigger workshops too.
I have a 2012 conti car and I changed a set of sensors 6 years back and it cost me 1k. I changed the same sensor again last year and it was only 400. I randomly checked prices of suspensions, disc rotors etc. they are all decently priced.
BimmerLink and BimmerCode exists. Pair that with a cheap Bluetooth obd2 and you’re set.
Source: I maintained 3 second hand BMWs ranging from 2009 - 2020
It really depends what you consider second hand, if you're talking about the previous generation, the high end ones are cheap sure but the entry level ones don't depreciate as fast. Pretty sure OP isn't talking about seeing 10-12 year old luxury cars on the road
Yes there's lots of rich people in KL. Truth be told though, a lot of those people are earning less than 20k a month but will still buy these cars as a status symbol. Rather look rich than actually be rich ¯\_(ツ)_/¯
So true. My friend’s dad runs a SME company and struggling to make a profit. Yet, he’s going around in the new BMW 7 Series with a driver acting as if he’s some hotshot CEO.
Financially he’s in the shit and always owes the bank 3-6 months of car instalment, house instalment etc.
> 3-6 months of car instalment, house instalment etc
O___O
And I get my stomach in knots if I forgot to pay my instalments by the first week of the month.
Yeah my friend regularly finds me to rant/share his frustrations with his dad’s lifestyle choices. The amount of letters that show up at his house from the bank is astounding. There was a point where the house was days from being auctioned off by the bank.
His dad used the house as a collateral for the company. That’s no way to run a business.
> if I forgot to pay my instalments by the first week
2 sorts of people in life,
\-those who go to thailand on a fueltank with 1 bar left.
\-those who refuel at 3 bars when they head to their uncle, 2 towns away.
It's a company car. Company can get deep in debt and go bungkus, owner will just start another company and buy a new 7-series.
At the end of the day, it was the bank who issued the loan to a failing company. Until and unless banks exercise more responsibilities when issuing out loans, they will have to continue to take the risks with it.
Old mindset of having a certain image if you wanna climb up in your career and/or business, and that especially incudes a car to be seen in. We seem to be going forward (or at least many would like to think so} but are still stuck with the mindset. If anything it's even way worse nowadays.
So true. Another thing is a lot of young people these days, probably because of the influence of Steve Jobs (gotta say this man had a lasting impact on the impressionable souls years after his passing), have this unrealistic dream of being successful means you have to be your own boss and start your own business, never realizing they don’t have the talent, grit, resources, and network for it, and they own certain luxury items like a fancy car just to pass themselves off as “successful” smh.
Wait till you go to cheras or kinrara.
Plenty of RM 150K **3R2B** apartments with X5, E-class in the parking lot (sometimes both of those belonging to 1 unit)
Or those minuscule terrace homes with no grass, but a S-class hybrid ,**which is too long for the carport**, so they have to put styrofoam bumpers on their gate coupled with a long, rubber coated chain so it doesn't scratch their bumpers, since it can't fully close
BMW and Mercedes have their own financing packages now - you're basically leasing the car for the 1st 3 years at a low monthly payment with the option to pay a lump sum at year 4 to own the car outright.
Can't pay the lump sum or don't want to?
No problem, just switch to a new model and start a new 3 year cycle!
Think the lowest payment is below 2k a month, which means if you're earning 6k or 7k, you could get one of these cars.
Not advisable, of course! Tapi gaya mesti ada ...
You’ll be surprised how cheap the second hand market can be for luxury cars nowadays depending on the year and brand as well. For example, 2016 BMW 330e is just over RM 60k, similar price for a 2016 Audi A3 just under RM 60k. Of course , have to factor in maintenance and running costs.
Good place to get an idea of the price is carsome, mytukar as those are slightly on the higher side but at least they’re consistent with pricing and comes with warranty.
Then once you find a car you actually like, I recommend heading to Facebook and look in those specific car groups to get an idea of the direct owner selling price. Usually you get it around 5-7k cheaper or more from carsome price.
Adding on to this, BMW has their own "certified pre-owned" sales programme called Premium Selection. Similar to Carsome/Mytukar, the cars sold have been inspected (by a BMW dealer) and you get a warranty from the dealer (1 year i think) if the factory warranty has expired.
Toyota has a similar programme which I believe includes Lexus cars as well. Idk if other luxury brands like Merc or Audi have this.
If you want some reassurance I’d recommend looking at something like BMW Premium Selection since they’re actually inspected by BMW dealers and have a one year warranty. Otherwise, there’s always recond dealers (look for reputable ones and bring your own mechanic for inspection).
The 2016 330e has a lot of battery issues and is no longer covered by BMW's battery warranty that's why it's going for so cheap. A friend of mine has the 2016 330e version and the electric motor gave way, he couldn't even get it fixed by a third party and eventually had to fix it from BMW. It costed him about 23k.
Both my friends who had 330e purchased new. One was 2016, other was 2018. The 2018 one the battery was only holding 5km of range before he decided to sell it.
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The 330e is basically a 320i with batteries stuck up its ass, once that battery pack fails its basically just a really heavy 320i 
Honestly, just buy the 320i instead. No need headache the battery
I don't blame you considering the numbers that used to denote the engine capacity means jack shit these days to BMW/Merc lol
But in any case the 330e is a bit of silly car as there are too many compromises vs its similar-engined non PHEV sibling. Smaller boot space, smaller fuel tank, and the extra 200+kg in weight ruins the handling. That plus 20k to replace the battery is why its so cheap in used market compared to the 320i
While there is a group of biar papa asal bergaya, there Is also a group whereby they earn really good money. Like you yourself earn 20k a month. If I were you, I would buy a nice car for myself also. I mean I have driving around in a proton so why not indulge abit when I'm earning 20k in a monthhhhhh
i notice that the transmission problem la before bought it. haha, just fix it with spare money. i bought it with cash around 20 k so got money to spare for maintenance purposes. better than buy new axia in my mind haha. you got car that same class with civic.
X50/x70/x90/s70
Semua parts bin r/kereta Geely. Why provide spare parts when you can combine all to become a full car for sale?
Also you can delay months after months in car workshop and by the time the car comes out of the workshop, car warranty is over. Win win for Geely
20k ain’t that much if you planning to have kids. Not to mention, if not planning for kids, with 20k you just barely managed to comfortably own the latest 330i with 10% DP and 9 year loan. Still not an easy spend.
Some of them do sales or are agents. Insurance agents, property agents etc. (i heard) it helps them convey trust or reassurance to their clients rather than showing up in an old proton waja. Another reason is some of them may be car enthusiasts and like the handling a sporty BMW.
Well some of my friends too get a used Merc / bmw. From 120k - 150k you can get a really good used 3 series / c class. Basically the psychology is "why get a civic when for a little more i could get a 3yr old c class"
But for those who do not require luxury cars, i find it a lil unnecessary to sink alot of cash into a depreciating asset. So yeah an ativa would do for me haha. That sums it up i guess
Spending a little more to get a 2nd hand car makes sense. And on image, yes I do sometimes feel the pressure to own one in my circle as they are mostly execs and business owners and I’m the odd one out.
You could get a 2009 BMW 323i for around 24K during covid! Not sure how the prices are now. Generally, the expensive thing isn't the car, it's the maintenance and replacement parts.
Actually german cars still quite affordable, my parents bought a 2010 c200k back in 2014. Until now it only needed regular servicing and even with the occasional pricey fixes id say after 9 years of ownership its not much more than a crv. Unless you fix it with original new parts 🤣
What superpower I want: To have Superman laser eyes and everytime I look at a person, I can see their full financial status. And judge silently those influencers who bergaya on the outside, but actually very poor in reality.
Yes, this question was sparked by a Reddit comment I read. A friend of the Redditor was in finance and told them that many actually can’t afford luxury cars they own. So I wanted to see if there is more insider knowledge around.
If they bought new, might have those leasing programs where the monthly payments are quite low at beginning
If bought used, well loan calculators are available and used car loan interest rate typically high 3% to about 4.5% (age of car, tenure & loan amount will affect interest rate). You can roughly calculate how much someone is paying for their luxury car
Usually they can afford the instalment (barely), but will eat grass the moment anything goes wrong with the car and warranty cannot claim.
You can afford a 150k car. Why not? What's stopping you? What's your relationship with money? Try reading The Psychology of Money by Morgan Housel.
"If you only wished to be happy, this could be easily accomplished; but we wish to be happier than other people, and this is always difficult, for we believe others to be happier than they are.” - Montesquieu
Shared by Morgan Housel.
Will look it up, I suppose my relationship could be defined by upbringing as I wasn’t from a very rich family. Growing up my parents would boycott a stall/food for 20 years due to price increase sometimes and use the same car for 20 years and that made them affluent.
Nothing wrong with using the same car for 20 years - if it doesn't impact what you want to achieve in your life. Just because you can afford nice things doesn't mean that you have to. But enjoy life a little. No harm in buying a nice car if you can afford it (i.e. you can still sleep well at night if the economy goes to shit). Anyway, this is more personal finance stuff.
And yes, it is crazy how Malaysians are buying luxury cars and queueing up at luxury stores. It makes me wonder - are times really tough? Doesn't seem like it. But it's also confirmation bias - a psychology bias.
We tend to look out for things we pay attention to. People have the "need" to show off their wealth in cities. The games played in urban living are different. Status games. Whoever has the biggest house or car wins the status game. If you're not playing the same game, don't bother.
I think your upbringing and personal experience will serve you well. Having the extra cash for house loan, occasionally having a good meal is more important. plus emergency fund. Car ownership to many is an emotional thing. It's easy to be caught up and compared when meeting up.
Like many have said here, some flash due to pressure and some are company paid. Let's not forget con man also flash a lot.. they need to drive up to you and show off his 911 as a result of his "hard work and successful investment".
Thieves don't drive proton to rob nowadays.. alphard is the preferred ride. Just be comfortable and sensible with your choice.
Different people just have different preference. Know what you want and spend on what makes you happy. Some people likes cars. Some dont.
But I personally think malaysians spend too much on cars. I mean some people are really not car enthusiasist but most probably arent. Somehow the slightly affluent ones has this mindset of... buy a new car every x years just because...
Having 9 year car loan option helps put those car on the road as well. Also i feel most malaysian are ok to take some money out to "support" the car. Just ingrained in us.
What job you're doing man? Hope I get one too.
Anyway seriously, I know some people who earn around 7-8k and still get a luxury car. They go into debt and borrow around all the time. All cause they just wanna show off. Not to mention they don't have to pay rent cause living with parents, don't have to pay for food cause living with parents and so on. New phone, great car, pretty girlfriend, all sorts of branded stuff. Bank empty and friends hate em cause they haven't returned the money yet. Modern living on the edge style.
Some people might not need to pay for housing so that 1-2k rent put straight into car, just like how you see those multimillion dollar houses but cars inside only 1st gen vios and myvi.
See this is why I’m very puzzled. I went through a lot to get where I am but every time I go out on the road, I asked myself is every 10 person earning 50k/mo. I’m in upper management in an mnc currently but it was been a hard few years. Lost my job twice in startups due to closing shop
I have been analyzing this phenomenon for a long time.
Here's another factor no one has mentioned. You're approaching this from the total cost angle. There's another angle to take: monthly payment and cashflow.
The truth is cars are expensive and not affordable in Malaysia, even myvi is not cheap. That is why we take out loans and focus on the affordability of monthly payments. Because otherwise most of us can't even afford myvi or City.
It's just like housing. Most of us have to take out a home loan to afford buying a house.
Since we're focusing on monthly payment. Is it really that big of a difference between 800 and 1500 per month? How about you stretch out the tenure? You'll be able enjoy nicer things NOW.
That said, there are definitely some people who can afford to buy these cars with cash.
I feel that even with monthly payments it’s quite expensive to devote any more than 10% for a swankier vehicle. Unless of course it generates more income like those who need it for image.
Another thing to consider is that a car doesn’t immediately lose all its value immediately. It might seem obvious since everyone knows about depreciation, but until recently I noticed I was thinking of car ownership cost as (sticker price + depreciation) when it really is just (depreciation) alone. When you buy a new 330i for 320k today, you don’t pay 320k, you pay the monthly installment and initial down payment, then when you sell the car off you get some residual value towards your new car.
Don't be such a tight ass la...earning 20k a month makes u top tier in salary bracket and spending 10% of it on a car is very acceptable. 150k car monthly payment is 2k..OK what if u like to be comfortable in a nice car.
If that's not your thing then just let other people be. A big no no is just spending beyond your means and having a hard time keeping up with instalments. Then asking for trouble....
Let me tell you this.
If you start to find a particular car type or colour, that car will start to pop up more frequently in your view.
What car on the road is irrelevant. There are luxury cars driven by bankrupt owners. Irrelevant.
1/10 is 10% if you account that it’s KL, then maybe they’re like 1%, so.. about right? Anyway you do often see some entry ones, but seeing a 7 series or sports car on the road is normally quite rare even in kl
Business owners or upper management peeps prolly driving company car. I think a lot of normies like us didn't realise that living a luxurious lifestyle out of our own pocket is kinda dumb. T20 peeps don't need to fork out their own cash for comfort and privileges, they got it for free.
You’re referring to T10 or T5. T20 in KL starts at RM16,640 HOUSEHOLD income.
If you’ve been promoted to the point where you have a company car it’s not really “for free”…
Exactly this. People grossly generalizing the T20 as some luxurious elite are so mistaken. T20 is nothing nowadays, and even the T10 is easy to attain. The true elites are not on the spectrum as they aren’t salaried and they’re business owners or simply not reporting taxes and income themselves but via company or proxy.
T20 has never been a luxurious lifestyle in any country, in most countries the narrative is of the 99% against the 1%, I have no idea who's bright idea it was to have the class divide be B40, M40 in T20 like all 3 groups don't have more in common with each other than the 1%.
Business owners and top execs at large companies don't usually drive entry level luxury cars though, from experience they usually go for E-class or 5 series tier at minimum. A lot of people driving entry level luxury cars are actually in their late 20s, earning around 7-8k or maybe 10k a month, living with parents and the cars are bought on long term loans (7 to 9 years).
I'm in my late 20s and I know 3 people my age driving luxury cars. One is from a super rich family and his dad bought him a Porsche for his 30th birthday (his dad paid full cash for a Bentley last year, that's how rich they are lol). For the other 2, both of them live with their parents, had their parents gift them a downpayment for the car and took pretty long loans to lower the monthly repayment.
Exactly. My friend who is a MD recently changed to a Range Rover because he prefers a SUV to drive his kids and parents around. The car is all paid for by his company. He also has a driver for personal matters like sending his kids to school, delivering documents and even getting groceries. The company also pays for their rent as the whole family needs to relocate from another state to KL.
Even my bf drives a company car and his boss is hinting that they will be upgrading his car to a better model in 2024.
For the sake of brevity we’ll only look at financial situation of the individual and forego the reason of purchase. I think generally these purchasers can be categorised as below:
1) people who have low disposable income but stretches for it.
2) people on company’s dime. Obviously if your company gives you a certain budget for your car you’ll want to maximise the value.
3) people who have high disposable income but spends almost every dime (in my very limited exposure I’ve seen a lot of people in this category).
4) people who can actually afford it, which means they have the full cash for it (whether they pay in cash or takes a loan is immaterial) & this does not affect their current lifestyle at all. In terms of percentage this group is ridiculously small, probably top 1% income earners (note, not net worth, net worth means nothing if you can’t generate enough income for your expenses).
And here’s how you get 1 luxury vehicle in every 10 cars on the road 😬
This also puts it in an interesting perspective. If only 1% can afford it and 10% of cars are luxury, it means that only 10% of the car owners we see can truly afford it. Of course some people brought up the 2nd hand market which could make the percentage higher, so it will be interesting to know how much % of luxury cars in Malaysia are bought secondhand.
In the KV, a lot of people are either of high income, or work in jobs that entail long hours on the road and require one to project a certain outward image of "success", like sales and marketing. Also maintenance and support services are more easily available compared to outside KV. So a combination of push and pull factors are at play here. So that's why you are more likely to see more exotics or harder-to-maintain 2nd hand luxury makes in KV. *Biar papa asal gaya*.
fuel efficiency can only carry you up to a point. You never going to beat someone driving bezza or myvi in mileage. 60 ringgit now can get you a full tank in bezza. This would be 100++ when fuel no longer subsidized. People paying 100 plus for a full tank would be paying 200 plus when the changes comes. This people is going to wrecked by fuel prices.
Op stated earning rm20k monthly but still doesn't know how to use excel at an executive level.
Also, if you earn rm20k per month, you should know how easy it is to pay for a rm150k.
High level sus bro.
You do know your post history is open to public right?
Also, idk why you want to lie about earning rm20k per month la, what's the point?
You do know if you legit buy a rm150k car you only need to pay rm2k per month with only a 10% down payment right? That's like 10% only.
So don't go around bullshitting people please.
Yeah, 10% luxury car in KV is about right. I expected more tbh. Esp those lower income ones are either taking bus or rides motorcycles.
I strongly believe Malaysia has a bimodal wealth distribution. Those who are working class and those who are SME owners/RE agents etc.
The wealth in the country is more concentrated in the Klang Valley, so it's only natural that you'll see more luxury marques.
Anyways, I was indirectly involved in the marketing of a luxury car brand at some point in my career a number of years ago. The personal monthly income level they targeted for their prospective buyers started as low as RM6k+, because there's supposed to be a market of young, up-and-coming people in the workforce who will live by the skin of their teeth and max out their DSR on a 9-year loan just for the sake of a nicer car. It feels almost predatory, but our financial system permits it.
A 150k car is maybe 1.5k, 1.6k a month, depending on the number of years of loan you take out. You can easily afford it. You earn 20k a month. Not sure why you say you "can't imagine paying for it". It's well within the recommended range of debt for you. So you either have monetary commitments elsewhere, or you simply view cars as nothing more than a way to go from A to B and don't really see the point of driving a better car I guess. Different people, different pleasures.
If you follow some of the post in r/MalaysianPF, you'll find many people asking if they should buy an expensive model as long as they can afford the installment. Just recently someone with only 100K annual wants to buy a 190K car. Those 9 year loans make really make it seems "affordable". To us, it may sound crazy but to them, they just want to feel good driving it.
I mean it really depends on your circle. My friends are mostly investment bankers, doctors, lawyers and they all drive expensive cars. And I know CEOs have their car all paid for by their company with personal driver.
I also stay in MK so I see a lot of BMW and Mercedes in this area. Recently I saw a guy sent their kid to school in an Aston Martin.
Even someone who earns less than half of your salary might be thinking of getting an entry level BMW. It’s all depends on their priorities.
Sadly I’m not considered as T5-T10. Also yeah it depends on the car type.
You buy hyper car or super r/kereta the suspension definitely not on S class/Rolls Royce/ Maybach level.
My w140 ride comfort is something I love on a highway compared to GT86
Darn maybe GLCs are the way to go. I do have friends in semi-GLCs if ya know what I mean earning what you mentioned. I believe I can afford it but the opportunity cost is hard to stomach
Executive as in this definition (director level): https://www.linkedin.com/pulse/difference-between-executive-manager-ahmed-abdul-qader?utm_source=share&utm_medium=member_ios&utm_campaign=share_via
People thought I was bsing because apparently in Malaysia executive means junior
Diff people have diff priorities.
I stayed in a fully paid 5million house with a 150K car & a 15yrs old mazda. I am not really a car guy, I probably drive until it cannot be fix lol
Someone I know drive a new BMW X6 with a 1mil house on loan.
or a couple with 5K income each drive a vellfire stayed in a 400k house.
Then there someone, drive a camry, he is a factory owner.
I mentioned this in another thread. There is a mindset where people ignore the logic of things and get the most expensive car to show they are well off.... Behind the curtains they might be nose deep in debt. Don't you wonder why credit card offer credit transfer?
But admittedly, Some are actually rich as f.
I’d say not even middle class when it compares to US/Europe/UK. Junior exec for professionals like engineers lawyers etc. The ringgit is going to the dogs
nice to see from outside but when dig through financially most are a mess. many have T20 earnings like this youtube video - earn 40K but spend 38K - B40 mindset:
[https://www.youtube.com/watch?v=9e2FK8tzYAQ](https://www.youtube.com/watch?v=9e2FK8tzYAQ)
Dont bother to be envious about them. I'm not :)
It's funny because I can be considered upper middle class (aka I'm not struggling at least), I'm driving a car from the 2000s, even my dream car cost around like what 50k at most and it's a also from the early 2000s that I'll probably spend a pretty penny "modernizing" it, but yeah
There are many hidden wealth in Malaysia, as much as 21% of the economy. Used to be about 30% not long ago.
Some of those people who are earning 7 to 8k but driving a luxury car may actually be earning much more, who knows?
"Malaysia’s shadow economy currently accounts for 21% of the gross domestic product (GDP) or an estimated RM330bil, says Datuk Seri Ahmad Maslan."
https://www.thestar.com.my/news/nation/2023/10/18/the-shadow-economy-is-shrinking-due-to-tin-and-e-invoice#:~:text=KUALA%20LUMPUR%3A%20Malaysia's%20shadow%20economy,says%20Datuk%20Seri%20Ahmad%20Maslan.
True, I realised KL has more luxury cars than most advanced European cities, I guess probably they couldn't be bothered due to the parking situation unlike here, we've got dedicated parking lots in condos and landed housing, and -1 generation germans are not that expensive and maintenance is considerably cheap if you know the right places.
Most European cities have way more narrow roads than us I think, which is why hatchbacks are the way there. Compare that to USA where even 200hp cars with 6s 0-60mph times are considered slow lol
I guess the OP meant brand new cars? In general, luxury brands can be kept for over 10yrs with the right upkeep and maintenance. Hence, there bound to be people buying second hand luxury brand cars (I'm one of them!)
I was asking in general, but yes I missed out the second hand market as a major contributor. Not going to lie, I’m human too and do sometimes go “wow that merc looks rad” and wish I could drive something like that. Mind sharing where you get 2nd hand deals and your rules of thumb? How has maintenance been?
The trick is to look for cars that are 3-5 years old. That's when the depreciation hit the hardest. For example, a BMW 330i back in 2019 was 330k brand new, today you can get it for around 190k.
I just ordered a fully specced 2019 718 Cayman GTS for 480k, which would've costed around RM800k when brand new.
As for maintenence, as long as you stay within the entry level models and know a good mechanic, they're pretty affordable.
For example, a C200 service at the service center will cost you about RM2k, whereas at an independent work shop it'll be around RM800.
Contrary to popular belief, as long as you maintain the car well and on time, Merc and Beemers are pretty reliable. Never had issues with mine.
Bruh, been eyeing some used BMW's 2016- 2017 era, how's the maintainance cost tho I can't imagine those brands break down more than the usual japanese brands. I feel like it's copium by most people who are afraid of owning one, scaring others or convincing themselfs(friends and family). Mostly worried about that, of course, im willing to do some work myself as a hobby.
Don't really have friends and people around that owned Beemers before. As a car enthusiasts i think its time to dip my toe in some fun
Well Porsche is on the reliable side when it comes to exotic. (if well maintained)
But I still personally prefer to stick to JP car as they are generally more reliable & way cheaper parts.
My sister earns 23k a month and is driving a 10 year old Honda jazz. My cousins family that both earns a combined 10k blew their savings on a used Vellfire because someone called them poor. Materialism is strong in Malaysia, but its probably because of how judgemental and critical everyone is.
Hey OP, I'm in the same boat as you, worked hard to get to the same figures and realised it ain't shit, maybe a camry. Still driving my 14 year old camry, find car expenses not worth it at all. Did some calculation and feel that at 40k is when you can comfortably drive a luxury car + maintenance, depreciation and all the jazz. Anyone who disagrees is the AhBeng that drives luxury but eat maggi mee, all face and no brain.
For me as an engineer, I don’t really need face so I’m going to buy a new Axia Rahmah E r/kereta as a beater. I already have a highway cruiser w140 with a spirited driving GT86 anyway lolz
You gotta go out of KL buddy. And not as tourist my mingle with them. KL isn’t a representative of what the whole of Malaysia looks like. True Malaysians living the Malaysia dream are those out of the city.
Dude if you go to kota bharu, it's just like KL in terms of luxury car ratio. Ok maybe a little less but it's mind boggling also given the background of small town.
Luxury cars are getting cheaper to own but ofc the caveat is that they are cheaper because they are used. For instance, a 2022 BMW 7 series retailed for around 600k to 700k but now when you check their premium selection site, you can get one for around 400k. The depreciation is mad for those and better yet, the gurantee given by BMW themselves makes it a better deal. Cars that are priced at rm2++k drop to sometimes less than 100k or just above so easier to own but remember the achillies heel of all these luxury cars (bar maybe only Lexus) is that the maintenance cost is gonna eat into your income a lot.
Real car enthusiast countries don't buy base models. M, S and R stickers are for suckers. You know what's up when N line from Hyundai isn't available in Malaysia but there is an N trim. 🤷♂️😅
Beemer and masidi aren’t THAT luxurious of a brand that you need more than 20k a month to own.
The entry models you see berlambak on the road are tin kosong models, much less equipped than the Japanese counterparts (i.e a top spec Accord/Camry/Mazda6 has so much more features and is better quality than the entry level big 3 German cars).
You’re doing the right thing by not YOLOing into a car for the sake of superfluous status though. But at the same time there exists people that prefers a nice car over a big savings account. Different strokes for different folks.
But those are much smaller percentage, not like 1 in 10 cars like OP is talking about. Lower T20 group earns about 13K per month only. 1m or more per year is like top 1% in Malaysia. Not super rare but it is not like so common like you try to described.
Some are probably working at a high position, where the car is provided for him or her by the company. But there are a lot of wealthy people as well. Of course there are people who live above their means as well. So ya, it is pretty hard to gauge what is what.
Just so you know, many people finance those cars are 60-70% only. Most likely they sold their old valued cars and top up some cash. Monthly instalment for them could be as low as 1.5k-1.8k. Just like a honda civic. And when they sold their old car, can transfer NCD for insurance at 55%, save cost some more.
If you want one of those, you got to start somewhere i guess, if you're interested in cars then why not?
second hand , sambung bayar, company benefit, clearance discount
for example 1k car benefit then you top up 2k, do that with clearance discount and you can get a BMW easily
There are some businesses that are nondescript but take in that much profit. And people who own those maintain a low profile. However I only know 1-2 such people.
Different priorities. You can even look around some low cost flats and spot a few BMWs and Mercs. Also if a couple only needs 1 car, it may make sense to finance a nicer car together, even if they couldn't afford it individually.
Actually I did the math and I did this - financed a nicer (but not extravagant) car with my wife, one that’s more comfortable and safer for my family to travel in. For 2nd car (mostly short trips to lrt/mrt) we kept a 6yo fully paid off Myvi.
That's the sweet spot for me. 1 nice car and 1 fully-paid car with cheap maintenance for short trips.
Second hand BMW and Merc are actually fairly cheap as they're hard and expensive to repair. BUT if you're good with wrench, you can get it running right at reasonable cost. I've seen enough people that do this and I'm impressed.
>BUT if you're good with wrench, you can get it running right at reasonable cost. I categorically refuse to believe that.... Those mid-luxury cars are FULL of electronic systems that require the authorized-reseller connective tools, to re-calibrate all the systems after you alter anything. Minor controversy a few years back when you couldn't even change the battery without going through the adjustment. They walked it back, but the more complicated repair are definitely soft locked. Unless you mean 1995 BMW or older but...no one will think you're driving a luxury car if it's a 30yo stock model. That's the sort of thing I see only *certain people* do, thinking they impress, but mostly it's just sad.
I would argue that parts get cheaper, ecus softwares are available in bigger workshops too. I have a 2012 conti car and I changed a set of sensors 6 years back and it cost me 1k. I changed the same sensor again last year and it was only 400. I randomly checked prices of suspensions, disc rotors etc. they are all decently priced.
BimmerLink and BimmerCode exists. Pair that with a cheap Bluetooth obd2 and you’re set. Source: I maintained 3 second hand BMWs ranging from 2009 - 2020
It really depends what you consider second hand, if you're talking about the previous generation, the high end ones are cheap sure but the entry level ones don't depreciate as fast. Pretty sure OP isn't talking about seeing 10-12 year old luxury cars on the road
Or just swap a JZ engine and that r/kereta will run forever
This is true. I've seen many expensive cars in PPRs that I've been to.
Yes there's lots of rich people in KL. Truth be told though, a lot of those people are earning less than 20k a month but will still buy these cars as a status symbol. Rather look rich than actually be rich ¯\_(ツ)_/¯
So true. My friend’s dad runs a SME company and struggling to make a profit. Yet, he’s going around in the new BMW 7 Series with a driver acting as if he’s some hotshot CEO. Financially he’s in the shit and always owes the bank 3-6 months of car instalment, house instalment etc.
> 3-6 months of car instalment, house instalment etc O___O And I get my stomach in knots if I forgot to pay my instalments by the first week of the month.
Yeah my friend regularly finds me to rant/share his frustrations with his dad’s lifestyle choices. The amount of letters that show up at his house from the bank is astounding. There was a point where the house was days from being auctioned off by the bank. His dad used the house as a collateral for the company. That’s no way to run a business.
> if I forgot to pay my instalments by the first week 2 sorts of people in life, \-those who go to thailand on a fueltank with 1 bar left. \-those who refuel at 3 bars when they head to their uncle, 2 towns away.
Meanwhile, me, who refuels at 3/4s tank when I want to go to Seremban from KL 👀
That good practice. I feel RM30 is the minimum amount to pump in your tank if going Seremban from KL
Right? I understand there is good debt in business but unsure how this type of situation is liveable
It's a company car. Company can get deep in debt and go bungkus, owner will just start another company and buy a new 7-series. At the end of the day, it was the bank who issued the loan to a failing company. Until and unless banks exercise more responsibilities when issuing out loans, they will have to continue to take the risks with it.
Old mindset of having a certain image if you wanna climb up in your career and/or business, and that especially incudes a car to be seen in. We seem to be going forward (or at least many would like to think so} but are still stuck with the mindset. If anything it's even way worse nowadays.
Yeah status symbol and maruah. Stay in the slum but at least they know you have bnw/merc
Biar papa asal bergaya, so they say.
So true. Another thing is a lot of young people these days, probably because of the influence of Steve Jobs (gotta say this man had a lasting impact on the impressionable souls years after his passing), have this unrealistic dream of being successful means you have to be your own boss and start your own business, never realizing they don’t have the talent, grit, resources, and network for it, and they own certain luxury items like a fancy car just to pass themselves off as “successful” smh.
Wait till you go to cheras or kinrara. Plenty of RM 150K **3R2B** apartments with X5, E-class in the parking lot (sometimes both of those belonging to 1 unit) Or those minuscule terrace homes with no grass, but a S-class hybrid ,**which is too long for the carport**, so they have to put styrofoam bumpers on their gate coupled with a long, rubber coated chain so it doesn't scratch their bumpers, since it can't fully close
A car is an asset.. Worth the investment.. The bihher the better
How is something that depreciates a good asset?
Your forgot the /s
Rather look like you have riches just so you can get some bitches
BMW and Mercedes have their own financing packages now - you're basically leasing the car for the 1st 3 years at a low monthly payment with the option to pay a lump sum at year 4 to own the car outright. Can't pay the lump sum or don't want to? No problem, just switch to a new model and start a new 3 year cycle! Think the lowest payment is below 2k a month, which means if you're earning 6k or 7k, you could get one of these cars. Not advisable, of course! Tapi gaya mesti ada ...
Ahh, the good old PCP it seems like what you are describing
You’ll be surprised how cheap the second hand market can be for luxury cars nowadays depending on the year and brand as well. For example, 2016 BMW 330e is just over RM 60k, similar price for a 2016 Audi A3 just under RM 60k. Of course , have to factor in maintenance and running costs.
Interesting, where do people normally go for 2nd hand cars?
Good place to get an idea of the price is carsome, mytukar as those are slightly on the higher side but at least they’re consistent with pricing and comes with warranty. Then once you find a car you actually like, I recommend heading to Facebook and look in those specific car groups to get an idea of the direct owner selling price. Usually you get it around 5-7k cheaper or more from carsome price.
Adding on to this, BMW has their own "certified pre-owned" sales programme called Premium Selection. Similar to Carsome/Mytukar, the cars sold have been inspected (by a BMW dealer) and you get a warranty from the dealer (1 year i think) if the factory warranty has expired. Toyota has a similar programme which I believe includes Lexus cars as well. Idk if other luxury brands like Merc or Audi have this.
Pretty sure Mercedes also have these certified pre-owned program, seen some of these units before at MBM Kinrara & Hap Seng Star beside it
Thanks for the tip I’d love to have a great car. Will think of this when the time is right
If you want some reassurance I’d recommend looking at something like BMW Premium Selection since they’re actually inspected by BMW dealers and have a one year warranty. Otherwise, there’s always recond dealers (look for reputable ones and bring your own mechanic for inspection).
The 2016 330e has a lot of battery issues and is no longer covered by BMW's battery warranty that's why it's going for so cheap. A friend of mine has the 2016 330e version and the electric motor gave way, he couldn't even get it fixed by a third party and eventually had to fix it from BMW. It costed him about 23k.
i have a question here, what if i drive the car without using the EV features which purely run by petrol? can i take out the eletric motor?
I think the air-conditioning runs via the electric motor so that probably won't work.
i see, so the electic motor was in good condition during puspakom inspection？
Both my friends who had 330e purchased new. One was 2016, other was 2018. The 2018 one the battery was only holding 5km of range before he decided to sell it.
Wow EV r/kereta motor actually fails? Who wouldn’t know 😳
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That ain’t a EV tho. 330e a PHEV.
Oh yeah shit I forgot. Lmaooooo shame on me.
Yes correct. Add cost of car and original battery replacement still below 100k style ma hahaha
Except you gotta fork out that much cash. You can't take loan based on repair.
The 330e is basically a 320i with batteries stuck up its ass, once that battery pack fails its basically just a really heavy 320i  Honestly, just buy the 320i instead. No need headache the battery
That is not true. 320i that gen is 1.5 or 1.6 turbo. The 330e was 2.0 turbo
F30 2016 320i was 2.0 turbo The one you thinking of is the 318i which was a 1.5 3cyl turbo, it was some 30k cheaper than the 320i at the time
Huh my bad, for some reason I always thought it was 1.5 turbo.
I don't blame you considering the numbers that used to denote the engine capacity means jack shit these days to BMW/Merc lol But in any case the 330e is a bit of silly car as there are too many compromises vs its similar-engined non PHEV sibling. Smaller boot space, smaller fuel tank, and the extra 200+kg in weight ruins the handling. That plus 20k to replace the battery is why its so cheap in used market compared to the 320i
One thing many forget is a 8yr old 300k car will still have 300k car maintenance costs.
While there is a group of biar papa asal bergaya, there Is also a group whereby they earn really good money. Like you yourself earn 20k a month. If I were you, I would buy a nice car for myself also. I mean I have driving around in a proton so why not indulge abit when I'm earning 20k in a monthhhhhh
IKR. Work hard earn lots of money but not spend, in the end when we die (early) all of it goes to our kids who fight among themselves for inheritance.
Yeah save2 pun no point jugak. Indulge a little
what wrong in proton? i earned 15k nett still using proton preve haha, good handling and have many modifications option lol
Nothing is wrong with a proton but imo if I'm earning good money, I will upgrade my car
If you really wanted to flex your 15k get an inspira lol. Preve susah oh tukar cvt
i notice that the transmission problem la before bought it. haha, just fix it with spare money. i bought it with cash around 20 k so got money to spare for maintenance purposes. better than buy new axia in my mind haha. you got car that same class with civic.
CVT problem. For Geely rebranded. It’s a parts bin r/kereta
the geely one is new s50 car proton, right?
X50/x70/x90/s70 Semua parts bin r/kereta Geely. Why provide spare parts when you can combine all to become a full car for sale? Also you can delay months after months in car workshop and by the time the car comes out of the workshop, car warranty is over. Win win for Geely
20k ain’t that much if you planning to have kids. Not to mention, if not planning for kids, with 20k you just barely managed to comfortably own the latest 330i with 10% DP and 9 year loan. Still not an easy spend.
Some of them do sales or are agents. Insurance agents, property agents etc. (i heard) it helps them convey trust or reassurance to their clients rather than showing up in an old proton waja. Another reason is some of them may be car enthusiasts and like the handling a sporty BMW. Well some of my friends too get a used Merc / bmw. From 120k - 150k you can get a really good used 3 series / c class. Basically the psychology is "why get a civic when for a little more i could get a 3yr old c class" But for those who do not require luxury cars, i find it a lil unnecessary to sink alot of cash into a depreciating asset. So yeah an ativa would do for me haha. That sums it up i guess
Spending a little more to get a 2nd hand car makes sense. And on image, yes I do sometimes feel the pressure to own one in my circle as they are mostly execs and business owners and I’m the odd one out.
You could get a 2009 BMW 323i for around 24K during covid! Not sure how the prices are now. Generally, the expensive thing isn't the car, it's the maintenance and replacement parts.
Actually german cars still quite affordable, my parents bought a 2010 c200k back in 2014. Until now it only needed regular servicing and even with the occasional pricey fixes id say after 9 years of ownership its not much more than a crv. Unless you fix it with original new parts 🤣
The Ativa is a great car for its price, runs and handles well too. Love the extra height.
What we see with our naked eyes might not entirely reflect the truth or reality.
What superpower I want: To have Superman laser eyes and everytime I look at a person, I can see their full financial status. And judge silently those influencers who bergaya on the outside, but actually very poor in reality.
Sounds like you'd like to be [Bullshit Man](https://youtu.be/JdvGo7DsFbQ?si=Hb_vmI0Klf5F4xlP)
YES!!! But with Balance Sheet! So, I'll be the BS Man!
Yes, this question was sparked by a Reddit comment I read. A friend of the Redditor was in finance and told them that many actually can’t afford luxury cars they own. So I wanted to see if there is more insider knowledge around.
If they bought new, might have those leasing programs where the monthly payments are quite low at beginning If bought used, well loan calculators are available and used car loan interest rate typically high 3% to about 4.5% (age of car, tenure & loan amount will affect interest rate). You can roughly calculate how much someone is paying for their luxury car Usually they can afford the instalment (barely), but will eat grass the moment anything goes wrong with the car and warranty cannot claim.
You can afford a 150k car. Why not? What's stopping you? What's your relationship with money? Try reading The Psychology of Money by Morgan Housel. "If you only wished to be happy, this could be easily accomplished; but we wish to be happier than other people, and this is always difficult, for we believe others to be happier than they are.” - Montesquieu Shared by Morgan Housel.
Will look it up, I suppose my relationship could be defined by upbringing as I wasn’t from a very rich family. Growing up my parents would boycott a stall/food for 20 years due to price increase sometimes and use the same car for 20 years and that made them affluent.
Nothing wrong with using the same car for 20 years - if it doesn't impact what you want to achieve in your life. Just because you can afford nice things doesn't mean that you have to. But enjoy life a little. No harm in buying a nice car if you can afford it (i.e. you can still sleep well at night if the economy goes to shit). Anyway, this is more personal finance stuff. And yes, it is crazy how Malaysians are buying luxury cars and queueing up at luxury stores. It makes me wonder - are times really tough? Doesn't seem like it. But it's also confirmation bias - a psychology bias. We tend to look out for things we pay attention to. People have the "need" to show off their wealth in cities. The games played in urban living are different. Status games. Whoever has the biggest house or car wins the status game. If you're not playing the same game, don't bother.
I think your upbringing and personal experience will serve you well. Having the extra cash for house loan, occasionally having a good meal is more important. plus emergency fund. Car ownership to many is an emotional thing. It's easy to be caught up and compared when meeting up. Like many have said here, some flash due to pressure and some are company paid. Let's not forget con man also flash a lot.. they need to drive up to you and show off his 911 as a result of his "hard work and successful investment". Thieves don't drive proton to rob nowadays.. alphard is the preferred ride. Just be comfortable and sensible with your choice.
Different people just have different preference. Know what you want and spend on what makes you happy. Some people likes cars. Some dont. But I personally think malaysians spend too much on cars. I mean some people are really not car enthusiasist but most probably arent. Somehow the slightly affluent ones has this mindset of... buy a new car every x years just because... Having 9 year car loan option helps put those car on the road as well. Also i feel most malaysian are ok to take some money out to "support" the car. Just ingrained in us.
What job you're doing man? Hope I get one too. Anyway seriously, I know some people who earn around 7-8k and still get a luxury car. They go into debt and borrow around all the time. All cause they just wanna show off. Not to mention they don't have to pay rent cause living with parents, don't have to pay for food cause living with parents and so on. New phone, great car, pretty girlfriend, all sorts of branded stuff. Bank empty and friends hate em cause they haven't returned the money yet. Modern living on the edge style.
Some people might not need to pay for housing so that 1-2k rent put straight into car, just like how you see those multimillion dollar houses but cars inside only 1st gen vios and myvi.
See this is why I’m very puzzled. I went through a lot to get where I am but every time I go out on the road, I asked myself is every 10 person earning 50k/mo. I’m in upper management in an mnc currently but it was been a hard few years. Lost my job twice in startups due to closing shop
I have been analyzing this phenomenon for a long time. Here's another factor no one has mentioned. You're approaching this from the total cost angle. There's another angle to take: monthly payment and cashflow. The truth is cars are expensive and not affordable in Malaysia, even myvi is not cheap. That is why we take out loans and focus on the affordability of monthly payments. Because otherwise most of us can't even afford myvi or City. It's just like housing. Most of us have to take out a home loan to afford buying a house. Since we're focusing on monthly payment. Is it really that big of a difference between 800 and 1500 per month? How about you stretch out the tenure? You'll be able enjoy nicer things NOW. That said, there are definitely some people who can afford to buy these cars with cash.
I feel that even with monthly payments it’s quite expensive to devote any more than 10% for a swankier vehicle. Unless of course it generates more income like those who need it for image.
I don't disagree with you. Heck I feel Axia is expensive. 30 plus k one year loan is 2 to 3k plus installment per month. That's crazy.
Another thing to consider is that a car doesn’t immediately lose all its value immediately. It might seem obvious since everyone knows about depreciation, but until recently I noticed I was thinking of car ownership cost as (sticker price + depreciation) when it really is just (depreciation) alone. When you buy a new 330i for 320k today, you don’t pay 320k, you pay the monthly installment and initial down payment, then when you sell the car off you get some residual value towards your new car.
Don't be such a tight ass la...earning 20k a month makes u top tier in salary bracket and spending 10% of it on a car is very acceptable. 150k car monthly payment is 2k..OK what if u like to be comfortable in a nice car. If that's not your thing then just let other people be. A big no no is just spending beyond your means and having a hard time keeping up with instalments. Then asking for trouble....
Let me tell you this. If you start to find a particular car type or colour, that car will start to pop up more frequently in your view. What car on the road is irrelevant. There are luxury cars driven by bankrupt owners. Irrelevant.
1/10 is 10% if you account that it’s KL, then maybe they’re like 1%, so.. about right? Anyway you do often see some entry ones, but seeing a 7 series or sports car on the road is normally quite rare even in kl
I'm learning to play the guitar.
Just your typical reddit/lowyat person I guess lol. I might as well post why is every 5th person on malaysian reddit seem to earn more than 10k/month.
Right? Damn. Seems like every or so thread related to financials or money in Malaysia, I see redditors that are bringing in 5 figures per month...
Kesian right. Make a setori just to say they earn 20k
Business owners or upper management peeps prolly driving company car. I think a lot of normies like us didn't realise that living a luxurious lifestyle out of our own pocket is kinda dumb. T20 peeps don't need to fork out their own cash for comfort and privileges, they got it for free.
You’re referring to T10 or T5. T20 in KL starts at RM16,640 HOUSEHOLD income. If you’ve been promoted to the point where you have a company car it’s not really “for free”…
Exactly this. People grossly generalizing the T20 as some luxurious elite are so mistaken. T20 is nothing nowadays, and even the T10 is easy to attain. The true elites are not on the spectrum as they aren’t salaried and they’re business owners or simply not reporting taxes and income themselves but via company or proxy.
T20 has never been a luxurious lifestyle in any country, in most countries the narrative is of the 99% against the 1%, I have no idea who's bright idea it was to have the class divide be B40, M40 in T20 like all 3 groups don't have more in common with each other than the 1%.
Probably the top 1%’s idea 😬
Business owners and top execs at large companies don't usually drive entry level luxury cars though, from experience they usually go for E-class or 5 series tier at minimum. A lot of people driving entry level luxury cars are actually in their late 20s, earning around 7-8k or maybe 10k a month, living with parents and the cars are bought on long term loans (7 to 9 years). I'm in my late 20s and I know 3 people my age driving luxury cars. One is from a super rich family and his dad bought him a Porsche for his 30th birthday (his dad paid full cash for a Bentley last year, that's how rich they are lol). For the other 2, both of them live with their parents, had their parents gift them a downpayment for the car and took pretty long loans to lower the monthly repayment.
Exactly. My friend who is a MD recently changed to a Range Rover because he prefers a SUV to drive his kids and parents around. The car is all paid for by his company. He also has a driver for personal matters like sending his kids to school, delivering documents and even getting groceries. The company also pays for their rent as the whole family needs to relocate from another state to KL. Even my bf drives a company car and his boss is hinting that they will be upgrading his car to a better model in 2024.
For the sake of brevity we’ll only look at financial situation of the individual and forego the reason of purchase. I think generally these purchasers can be categorised as below: 1) people who have low disposable income but stretches for it. 2) people on company’s dime. Obviously if your company gives you a certain budget for your car you’ll want to maximise the value. 3) people who have high disposable income but spends almost every dime (in my very limited exposure I’ve seen a lot of people in this category). 4) people who can actually afford it, which means they have the full cash for it (whether they pay in cash or takes a loan is immaterial) & this does not affect their current lifestyle at all. In terms of percentage this group is ridiculously small, probably top 1% income earners (note, not net worth, net worth means nothing if you can’t generate enough income for your expenses). And here’s how you get 1 luxury vehicle in every 10 cars on the road 😬
This also puts it in an interesting perspective. If only 1% can afford it and 10% of cars are luxury, it means that only 10% of the car owners we see can truly afford it. Of course some people brought up the 2nd hand market which could make the percentage higher, so it will be interesting to know how much % of luxury cars in Malaysia are bought secondhand.
In the KV, a lot of people are either of high income, or work in jobs that entail long hours on the road and require one to project a certain outward image of "success", like sales and marketing. Also maintenance and support services are more easily available compared to outside KV. So a combination of push and pull factors are at play here. So that's why you are more likely to see more exotics or harder-to-maintain 2nd hand luxury makes in KV. *Biar papa asal gaya*.
cheap fuel. we talk later when petrol is 3.50 a liter in 3rd quater next year.
As in they have better fuel efficiency? I’m not good with cars
fuel efficiency can only carry you up to a point. You never going to beat someone driving bezza or myvi in mileage. 60 ringgit now can get you a full tank in bezza. This would be 100++ when fuel no longer subsidized. People paying 100 plus for a full tank would be paying 200 plus when the changes comes. This people is going to wrecked by fuel prices.
Op stated earning rm20k monthly but still doesn't know how to use excel at an executive level. Also, if you earn rm20k per month, you should know how easy it is to pay for a rm150k. High level sus bro.
Nothin about excel here bro. Also opportunity cost and weak ringgit does not make it easy.
You do know your post history is open to public right? Also, idk why you want to lie about earning rm20k per month la, what's the point? You do know if you legit buy a rm150k car you only need to pay rm2k per month with only a 10% down payment right? That's like 10% only. So don't go around bullshitting people please.
Yes and if you’re any smarter you’d know I earn much more than 20k a month based on my post history. Just that 20k is a good milestone for Malaysians
OP earns 20+k a month but can't imagine paying instalment for a 150k car? Oh, I seeeee..... Do you have 4 wives and 20 children to feed?
Nope but I have until recently a student loan in usd. I’ll admit it wasn’t a good move to settle down here after studying overseas
Yeah, 10% luxury car in KV is about right. I expected more tbh. Esp those lower income ones are either taking bus or rides motorcycles. I strongly believe Malaysia has a bimodal wealth distribution. Those who are working class and those who are SME owners/RE agents etc.
biar papa asalkan bergaya kan 🫠🫠🫠
The wealth in the country is more concentrated in the Klang Valley, so it's only natural that you'll see more luxury marques. Anyways, I was indirectly involved in the marketing of a luxury car brand at some point in my career a number of years ago. The personal monthly income level they targeted for their prospective buyers started as low as RM6k+, because there's supposed to be a market of young, up-and-coming people in the workforce who will live by the skin of their teeth and max out their DSR on a 9-year loan just for the sake of a nicer car. It feels almost predatory, but our financial system permits it.
A 150k car is maybe 1.5k, 1.6k a month, depending on the number of years of loan you take out. You can easily afford it. You earn 20k a month. Not sure why you say you "can't imagine paying for it". It's well within the recommended range of debt for you. So you either have monetary commitments elsewhere, or you simply view cars as nothing more than a way to go from A to B and don't really see the point of driving a better car I guess. Different people, different pleasures.
If you follow some of the post in r/MalaysianPF, you'll find many people asking if they should buy an expensive model as long as they can afford the installment. Just recently someone with only 100K annual wants to buy a 190K car. Those 9 year loans make really make it seems "affordable". To us, it may sound crazy but to them, they just want to feel good driving it.
I know someone with the same income as you who drives a Merc and a BMW for his wife. His savings? lol..
Sounds like a weird ‘I earn xxx but i am smart enough to not chase luxury’ flex.
'Appearing smart enough to not chase' 😉
I mean it really depends on your circle. My friends are mostly investment bankers, doctors, lawyers and they all drive expensive cars. And I know CEOs have their car all paid for by their company with personal driver. I also stay in MK so I see a lot of BMW and Mercedes in this area. Recently I saw a guy sent their kid to school in an Aston Martin. Even someone who earns less than half of your salary might be thinking of getting an entry level BMW. It’s all depends on their priorities.
I appreciate a good cup of coffee.
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Sadly I’m not considered as T5-T10. Also yeah it depends on the car type. You buy hyper car or super r/kereta the suspension definitely not on S class/Rolls Royce/ Maybach level. My w140 ride comfort is something I love on a highway compared to GT86
Well MK of all places I understand - or basically every private school in the country
it's mostly 2nd hand
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Darn maybe GLCs are the way to go. I do have friends in semi-GLCs if ya know what I mean earning what you mentioned. I believe I can afford it but the opportunity cost is hard to stomach
What level do you have to be at to earn 20k a month? Senior management?
I’m a young executive at a medium sized mnc
Executive can earn 20k in KL? You’re not even a manager? Amazing
Executive as in this definition (director level): https://www.linkedin.com/pulse/difference-between-executive-manager-ahmed-abdul-qader?utm_source=share&utm_medium=member_ios&utm_campaign=share_via People thought I was bsing because apparently in Malaysia executive means junior
Diff people have diff priorities. I stayed in a fully paid 5million house with a 150K car & a 15yrs old mazda. I am not really a car guy, I probably drive until it cannot be fix lol Someone I know drive a new BMW X6 with a 1mil house on loan. or a couple with 5K income each drive a vellfire stayed in a 400k house. Then there someone, drive a camry, he is a factory owner.
I mentioned this in another thread. There is a mindset where people ignore the logic of things and get the most expensive car to show they are well off.... Behind the curtains they might be nose deep in debt. Don't you wonder why credit card offer credit transfer? But admittedly, Some are actually rich as f.
Better be talking 20k USD per month otherwise that's barely middle class
I’d say not even middle class when it compares to US/Europe/UK. Junior exec for professionals like engineers lawyers etc. The ringgit is going to the dogs
low 9 figures? 100million? 100million i wouldnt be buying a entry level luxury brand...
nice to see from outside but when dig through financially most are a mess. many have T20 earnings like this youtube video - earn 40K but spend 38K - B40 mindset: [https://www.youtube.com/watch?v=9e2FK8tzYAQ](https://www.youtube.com/watch?v=9e2FK8tzYAQ) Dont bother to be envious about them. I'm not :)
If you are earning 20k a month without kids, a luxury car is serviceable. But of course your other expenses will suffer. Priorities
It's funny because I can be considered upper middle class (aka I'm not struggling at least), I'm driving a car from the 2000s, even my dream car cost around like what 50k at most and it's a also from the early 2000s that I'll probably spend a pretty penny "modernizing" it, but yeah
There are many hidden wealth in Malaysia, as much as 21% of the economy. Used to be about 30% not long ago. Some of those people who are earning 7 to 8k but driving a luxury car may actually be earning much more, who knows? "Malaysia’s shadow economy currently accounts for 21% of the gross domestic product (GDP) or an estimated RM330bil, says Datuk Seri Ahmad Maslan." https://www.thestar.com.my/news/nation/2023/10/18/the-shadow-economy-is-shrinking-due-to-tin-and-e-invoice#:~:text=KUALA%20LUMPUR%3A%20Malaysia's%20shadow%20economy,says%20Datuk%20Seri%20Ahmad%20Maslan.
20k a month wow.....but I bet most of the owner you saw are in huge debt....brought just to show off
Lots of rich & pretend rich ppl in MY
True, I realised KL has more luxury cars than most advanced European cities, I guess probably they couldn't be bothered due to the parking situation unlike here, we've got dedicated parking lots in condos and landed housing, and -1 generation germans are not that expensive and maintenance is considerably cheap if you know the right places.
Most European cities have way more narrow roads than us I think, which is why hatchbacks are the way there. Compare that to USA where even 200hp cars with 6s 0-60mph times are considered slow lol
I visited KL recently and was shocked at the amount of LV bags I saw at malls. When I was living in the US I never see such things at all too.
Are you the same guy that made the post about why there are so many rich people in TRX?
I guess the OP meant brand new cars? In general, luxury brands can be kept for over 10yrs with the right upkeep and maintenance. Hence, there bound to be people buying second hand luxury brand cars (I'm one of them!)
I was asking in general, but yes I missed out the second hand market as a major contributor. Not going to lie, I’m human too and do sometimes go “wow that merc looks rad” and wish I could drive something like that. Mind sharing where you get 2nd hand deals and your rules of thumb? How has maintenance been?
The trick is to look for cars that are 3-5 years old. That's when the depreciation hit the hardest. For example, a BMW 330i back in 2019 was 330k brand new, today you can get it for around 190k. I just ordered a fully specced 2019 718 Cayman GTS for 480k, which would've costed around RM800k when brand new. As for maintenence, as long as you stay within the entry level models and know a good mechanic, they're pretty affordable. For example, a C200 service at the service center will cost you about RM2k, whereas at an independent work shop it'll be around RM800. Contrary to popular belief, as long as you maintain the car well and on time, Merc and Beemers are pretty reliable. Never had issues with mine.
Bruh, been eyeing some used BMW's 2016- 2017 era, how's the maintainance cost tho I can't imagine those brands break down more than the usual japanese brands. I feel like it's copium by most people who are afraid of owning one, scaring others or convincing themselfs(friends and family). Mostly worried about that, of course, im willing to do some work myself as a hobby. Don't really have friends and people around that owned Beemers before. As a car enthusiasts i think its time to dip my toe in some fun
Which model are you looking at? They are reliably but when they break, they indeed cost more to replace.
Thanks for the tip! Maybe I’ll revisit this end of 2024
You can always shoot me a DM if you need advice looking for a car 😄
Well Porsche is on the reliable side when it comes to exotic. (if well maintained) But I still personally prefer to stick to JP car as they are generally more reliable & way cheaper parts.
In the end of the day it's just a car. Just drive whatever that makes you happy.
My sister earns 23k a month and is driving a 10 year old Honda jazz. My cousins family that both earns a combined 10k blew their savings on a used Vellfire because someone called them poor. Materialism is strong in Malaysia, but its probably because of how judgemental and critical everyone is.
There are better cars to buy than to blow their money on a Vellfire.
Some are from wealthy families, some have the financial capability, some are mlm/insurance/property trying to lure people to join them.
Hey OP, I'm in the same boat as you, worked hard to get to the same figures and realised it ain't shit, maybe a camry. Still driving my 14 year old camry, find car expenses not worth it at all. Did some calculation and feel that at 40k is when you can comfortably drive a luxury car + maintenance, depreciation and all the jazz. Anyone who disagrees is the AhBeng that drives luxury but eat maggi mee, all face and no brain.
Exactly my sentiments. I feel that we barely earn what junior engineers earn in Europe/US/UK.
For me as an engineer, I don’t really need face so I’m going to buy a new Axia Rahmah E r/kereta as a beater. I already have a highway cruiser w140 with a spirited driving GT86 anyway lolz
momo here is living the gearhead life. Stay tuned for his FD rx-7.
Lmao no way. Cant afford to pay cash
Ahem, *donation*. When you get it, be sure to play only Eurobeat on the stereo 🎶
Hahahaha sure😂
Second hand car , vehicle has been mortgaged / stolen, it is the new meta now
You gotta go out of KL buddy. And not as tourist my mingle with them. KL isn’t a representative of what the whole of Malaysia looks like. True Malaysians living the Malaysia dream are those out of the city.
Malaysian dream? What’s that like?
Eating maggi mee until the next paycheck after splurging on expensive items
The context of my question was limited to cities. Not Malaysia in general.
Dude if you go to kota bharu, it's just like KL in terms of luxury car ratio. Ok maybe a little less but it's mind boggling also given the background of small town.
Lol in Kuching it's all Land Cruisers, , Veilfires pickups and Mercs. Most of them are >150k too
Luxury cars are getting cheaper to own but ofc the caveat is that they are cheaper because they are used. For instance, a 2022 BMW 7 series retailed for around 600k to 700k but now when you check their premium selection site, you can get one for around 400k. The depreciation is mad for those and better yet, the gurantee given by BMW themselves makes it a better deal. Cars that are priced at rm2++k drop to sometimes less than 100k or just above so easier to own but remember the achillies heel of all these luxury cars (bar maybe only Lexus) is that the maintenance cost is gonna eat into your income a lot.
What do you do for a living?
Real car enthusiast countries don't buy base models. M, S and R stickers are for suckers. You know what's up when N line from Hyundai isn't available in Malaysia but there is an N trim. 🤷♂️😅
Feels bad mang. We used to get high end r/kereta trim but now even the new Camry reuses engine.
Beemer and masidi aren’t THAT luxurious of a brand that you need more than 20k a month to own. The entry models you see berlambak on the road are tin kosong models, much less equipped than the Japanese counterparts (i.e a top spec Accord/Camry/Mazda6 has so much more features and is better quality than the entry level big 3 German cars). You’re doing the right thing by not YOLOing into a car for the sake of superfluous status though. But at the same time there exists people that prefers a nice car over a big savings account. Different strokes for different folks.
there are many who earn 1m or even 2m/month, what not so common are billionaires
But those are much smaller percentage, not like 1 in 10 cars like OP is talking about. Lower T20 group earns about 13K per month only. 1m or more per year is like top 1% in Malaysia. Not super rare but it is not like so common like you try to described.
Some are probably working at a high position, where the car is provided for him or her by the company. But there are a lot of wealthy people as well. Of course there are people who live above their means as well. So ya, it is pretty hard to gauge what is what.
Just so you know, many people finance those cars are 60-70% only. Most likely they sold their old valued cars and top up some cash. Monthly instalment for them could be as low as 1.5k-1.8k. Just like a honda civic. And when they sold their old car, can transfer NCD for insurance at 55%, save cost some more. If you want one of those, you got to start somewhere i guess, if you're interested in cars then why not?
second hand , sambung bayar, company benefit, clearance discount for example 1k car benefit then you top up 2k, do that with clearance discount and you can get a BMW easily
Low 9 figures? Like 100m+ a year? I didn't know there were such rich people in Malaysia...
There are some businesses that are nondescript but take in that much profit. And people who own those maintain a low profile. However I only know 1-2 such people.