[Watch] Malaysians On RM1,600 Salary Eyeing Toyota Vios

Despite low salaries, many Malaysians still opt for better cars, citing personal choice over strict financial guidelines.

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A used car salesman’s social media post has ignited debate over financial literacy among young Malaysians.

The salesman, known only as Syafiq, shared on his TikTok account @syafiqpikkkk that numerous potential buyers with monthly salaries as low as RM1,600 are inquiring about Toyota Vios and similarly priced vehicles.

A Vios on RM1,600? That’s not just ambitious; it’s financially reckless.

The post, which has gone viral, reveals a concerning pattern.

Most inquiries come from individuals in their 20s; many have net incomes between RM1,000 and RM1,800, while some lack driving licenses or have poor credit histories.

Driving Straight into Debt?

The revelation has drawn criticism from netizens, with many questioning the financial acumen of these young consumers.

“When I was earning RM1,600, I was saving for a Myvi, not dreaming of a Vios,” one commenter noted.

Others warn that committing to such high-value purchases on low incomes can lead to long-term financial strain.

Experts recommend that car instalments not exceed 20-30% of one’s monthly salary, which can strain finances if not adhered to.

On RM1,600, that’s just RM320 – nowhere near enough for a Vios.

Ramen and Rides: The New Malaysian Diet?

Some car owners are said to cope by tightening their budgets, which leads to basic meal options such as instant noodles.

While meant in jest, the joke highlights genuine concerns about financial priorities and potential sacrifices made to maintain car ownership.

Malaysia also has a strong cultural inclination to showcase wealth through car ownership, leading many to prioritize expensive cars as a status symbol.

This encourages many to drive high-end vehicles despite their salary levels.

jenis gaji 2k pakai honda bulanan 1100. tu lepak petron je masak maggi. tengok pun tau tengah berpanasan https://t.co/mNUm5UYCa5
— Akagami No Thanks (@xsri_) May 13, 2024

Young & Broke: The Repo Generation

In Malaysia, an estimated 1,200 vehicles, including cars and motorcycles, are repossessed monthly.

The surge in vehicle repossessions is attributed mainly to younger-aged defaulters struggling with loan repayments despite car loans extending up to nine years.

The nation’s household debt reached RM1.53 trillion in 2023, with significant contributions from vehicle loans, accounting for 13.2% of total debt.

Around 14.39% of Malaysians face vehicle loan defaults, contributing significantly to bankruptcy rates.

Anak muda Harini berlagak kemain, tayang macam kaya bangsawan T20 , pakai apple watch , Honda ketam, setakat hutang pendidikan MARA/PTPTN pun tak mampu bayar/sengaja bagi alasan. Pakai iphone 14 pro max pakai iPhone 15 kau mampu beli. Babi budak camni.
— abrahamovic (@abrahamovicle) September 12, 2023