True Cost of Owning A Car

Beside the car value and installment amount, there are a  lot more cost which is not seen directly.

1) Depreciation Cost
That is where most people talk about owning a typical japanese car or a used car. Although not seen directly, there is depreciation cost involved in owning a car. For example, you could buy a new car and realized that the price is down by 10 thousand a year later. Which effectively translate into an implicit cost of RM833 per month which is potentially as high as the installment amount. Typically used car and japanese car has less depreciation cost compare to the rest.

2) Maintenance Cost
Why continental car has lower second hand car value? As the car aging, there are parts which needs to be repair/replace. In Malaysia its typically more difficult to find used or "imitation" parts for continental car. Owner need to opt for expensive new parts. That the reason why cost conscious owner are more reluctant towards continental car

3) Borrowing/Refinance Cost
Generally borrowing cost ranking by most expensive is local car, Korean car, Japanese car and continental car. Note also for used car, certain make has more expensive refinancing cost such as Nissan has more expensive financing cost compare to Toyota. According to banker, this is because bank is taking more risk to finance less popular car (eg Nissan) comparing to Toyota thus the financing cost is higher. Its also related to perceived risk, such as Proton/Perodua owner are perceived as higher risk compare to other car driver which requires more cost of financing. However this is not always correct because some maker will offer "incentive" on the borrowing cost which effectively lower the financing cost.

4) Fuel consumption and road tax
In long run, you may also want to look into cost of owning a car from the fuel consumption perspective. Hybrid cars are more fuel efficient which translate in long run of saving for owner. Secondly your car performance power also translates to higher road tax. However I would say road tax is a small consideration unless you are considering car above 3000 cc else its relatively a small cost comparing to others.

5) "Image" Cost
This is crazy but i decided to put in this one. Its still those days which your new girl friend's friend will ask... "what car is your boyfriend driving" ? or when you join a new company, new colleague are actively guessing the type of car you are driving. This cost is not real but its true. Oh materialistic world! Does it impact your social cycle potentially also your social positioning? Example opportunity for new friendship also impression created to your future employer and customers? Well this can goes into huge argument however nonetheless,     car main objective is bringing you from point to point, anything that goes luxury; wont it because of trying to impress someone?