Proton X50 Purchase On RM2,000 Monthly Salary With RM1,070 Instalment
Netizens express disbelief and concern over the customer’s ability to sustain such a hefty financial commitment.
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A netizen has sparked controversy by purchasing a Proton X50 with a monthly salary of RM2,000.
The news has sent shockwaves across social media as netizens debate the feasibility and implications of such a purchase.
mStar reported that the story emerged after a car salesman claimed to have assisted a customer with a monthly salary of RM2,000 to secure a bank loan to purchase a Proton X50 with a monthly instalment of RM1,070.
The Proton X50, a popular SUV in Malaysia, has a price tag that starts at around RM79,200 at launch for the base model and can go up to RM103,300 for the range-topping variant.
Despite the apparent financial strain, the loan application was shockingly approved, leaving many questioning the bank’s decision-making process.
The contentious issue had ignited a debate, with netizens expressing disbelief and concern over the customer’s ability to sustain such a hefty financial commitment.
Many have raised the alarm, highlighting the potential long-term repercussions of burdening oneself with a high-value asset on a modest income.
This eyebrow-raising incident has reignited discussions on the affordability of cars in Malaysia, shedding light on the challenges faced by individuals with limited financial means.
To understand why this purchase has become so controversial, let’s delve into the economics of car ownership in Malaysia and the financial implications for someone with an RM2,000 monthly salary.
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Decoding Car Loans in Malaysia: What You Need to Know
In Malaysia, car loans are typically structured with a repayment period ranging from 5 to 9 years.
The interest rates for car loans can vary, but they usually range from 2.5% to 3.5% per annum for new cars.
Assuming an individual takes a loan to purchase a Proton X50 at the base price of RM79,200 with a 10% down payment, the amount financed would be approximately RM71,280.
If this loan is spread over a maximum period of 9 years (108 months) at an average interest rate of 3%, the monthly instalment would be roughly RM850.
This calculation does not include insurance, road tax, maintenance, and fuel costs, which are significant additional expenses associated with car ownership.
I'm supportive of movements that discourages debt because we have have normalised budaya hutang 🤷♀️ Malaysia’s household debt is one of the highest in the region
— Suraya: bestselling Bergaji & Pokai book (@surayaror) March 20, 2023
Most debt is in the form of house + personal loan + car loan + credit card
Take from: https://t.co/x190qC6sIN pic.twitter.com/Hvcbep99cO
When Car Dreams Challenge Financial Realities
For someone earning RM2,000 per month, dedicating RM850 just for the car loan instalment constitutes more than 40% of their gross income.
This is well above the recommended budgeting advice that suggests not spending more than 15-20% of one’s monthly income on car-related expenses.
Once you add insurance, maintenance, and fuel costs, the percentage can easily skyrocket to over 50% of the individual’s income.
The rule of thumb for financial prudence suggests that all your monthly debt obligations should not exceed 30-35% of your gross income.
Sorry, gaji kalau baru RM6 – 7k, jangan membazir beli Honda atau Toyota baru.
— Adit Rahim (@AditRahim) May 22, 2020
One of the lessons I learned from almost being bankrupt, is to minimise your liabilities.
Your expenditure for car loan should not be more than 10% of your nett salary.https://t.co/AFMfmjStjy
Going beyond this threshold can lead to financial strain and make it difficult to cover other essential expenses like food, housing, utilities, savings, and emergency funds.
Compounding this issue is the frequent occurrence of car repossessions, which adds a dramatic layer to the scenario.
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@fireant7 #HiburanTikTok #fypã‚· ♬ bunyi asal – man1022@
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