If you follow my previous entry about Buy or Repair you will know that I’ve facing a problem about my car. My friend’s suggest to sell the car and buy a second hand car (the Japanese brand). But after take advice from some of financial expertise, I’m take a decision to change my car engine and keep it.
I think it is a wise decision for me and hopefully the car still usable for untill next 10 years. It could save me a lot if it could happen otherwise I need to buy another car that I can afford.
Back to the topic, there’s a reason I choose to repair instead of buying a new car such as :-
1. I’ve call the Hong Leong Bank ( bank I’ve make a loan) and the full settlement is about RM24,+++.++ . If I sold the car, probably I need to add some money to pay full settlement. To get a buyer ain’t easy especially the car in the bad condition. I’m also feel guilty if I’m sell the bad car. So, I think I won’t sell the bad condition car.
2. If I want to buy a car, the car must be better than my previous car. The model I’ve dream is Toyota Vios but after research from website such as Motortrader and the price of 2009 Toyota Vios is around RM45K-RM55K. If I want to buy it I need to make new loan. I don’t want to make loan just for 7 years and the monthly expectation is around RM7++. It is more than RM200 from current loan. It is not great to add expenses for loan as I’m learning about financial management now.
3. Even I get a new second hand car there’s no guarantee it could saving in the maintenance cost. There’s many cases the second hand car cause problem to their owner even the car is from reputable company. Not just second hand, there’s also issue from new car. So, I think it is better to stick with my current car.
4. I just paid RM10K to buy 1.5 acres inheritance land. I’ve RM10K debt because the land price is RM20K and I make loan from my father. The loan don’t have any interest or any term but I need to repay it even from my father. Other than that, I need to replace RM10K that I’ve used from my fund. It is important because the fund will be need if I want to get married soon.
5. I don’t want to waste my money to bank again. I’m regret to make a car loan maximum 9 years and house loan maximum 30 years. The interest the bank get is more than 100% after I get the statement. It make me look stupid after get the yearly statement.
6. The cost of change engine is still acceptable. If I want to buy a new car, I need at least RM10K for deposit or I need to make expensive loan. I’ve change engine about RM2,800 including the labour cost and the car look good.
7. I’m not use car for long journey. I just use car going office and maybe sometimes go to KL. As I’ve own a motorcycle to go office so I don’t think the new car is needed. Just using a motorcycle and use the car if needed and it save me. As I used motorcycle, the petrol expenses for a week is about RM 20 but using a car I need at least RM50. It is a big difference and could effect my expenses.
As, the general election will coming soon, the politician give their manifesto and one of their promises is to lower car prices but I don’t think I will change my decision because it is still not worthy. WHY? Maybe I’ll explain in my next entry. Just hope I won’t forget to write it.
Hopefully this is best decision for me. How about you?