Discover the real cost of owning a car in Malaysia—loan, fuel, insurance, road tax & more. Avoid surprises and plan your budget wisely.
🚗 The Real Cost of Car Ownership in Malaysia
Owning a car in Malaysia involves more than just paying monthly installments. When calculating the true cost of owning a car, it’s important to factor in expenses like petrol, car insurance, road tax, maintenance, and even parking. If you’re planning to buy your first car or upgrade, this guide will help you understand the total cost of car ownership in Malaysia.
💰 How Much Car Can You Actually Afford?
A general rule is that your car should cost no more than 12 times your monthly gross income. For instance, if your salary is RM2,500/month, your annual income is RM30,000. So, a car priced below RM30,000 would be a more practical and financially responsible option.
Avoid stretching your budget with high monthly repayments—this will reduce your ability to manage other necessary costs like fuel and car insurance premium.
🏦 Finance Charges
Most Malaysians buy cars using hire purchase loans. While paying with cash avoids interest, car loans allow manageable monthly payments. However:
- A larger down payment means lower interest.
- A longer loan tenure (e.g. 9 years) gives lower monthly payments, but higher total interest paid over time.
Use a car loan calculator to estimate monthly installments and total costs.
⛽ Petrol Costs
Petrol is typically the second-highest cost after your loan repayment. It’s wise to check the fuel efficiency of any car before buying it. For example:
- A car that uses 6 liters per 100km is more fuel-efficient than one that uses 10 liters.
Calculate based on how far you drive each day. The savings from a fuel-efficient vehicle can be significant over time.
📉 Depreciation
Cars begin losing value immediately after purchase:
- First year: Up to 20% depreciation
- After 5 years: Might lose 50% of its original value
To maintain resale value:
- Stick to common colors like white, silver, or black
- Keep up with regular servicing
- Maintain the interior and exterior condition
🛡️ Car Insurance & Road Tax
Your yearly car insurance cost depends on factors like:
- Market value of your car
- Type of coverage (Third-Party vs Comprehensive)
- Your No Claim Discount (NCD)
- Driving record & car type
As for road tax in Malaysia:
- 1500cc = RM90/year (Peninsular)
- 3000cc = Up to RM2,130/year
Tip: Smaller engine = lower road tax + better fuel efficiency.
🛠️ Maintenance and Repairs
Maintenance costs vary by:
- Age of car
- Mileage
- Brand and model
For example, between 50,000km and 80,000km, expect to pay at least RM1,500 for regular service and part replacements like:
- Brake pads
- Timing belt
- Battery
- Tires
Always keep a maintenance fund aside to avoid surprises.
🅿️ Parking Fees & Tolls
If you work in the city, daily charges can add up fast:
- Parking: RM10/day
- Tolls: RM6/day
- Total monthly estimate: RM352/month
Suburban or rural drivers may enjoy much lower costs, but it’s still an expense to consider.
🧾 Final Thoughts
The advertised price of a car is just the beginning. Make sure you account for:
- Petrol and fuel efficiency
- Car insurance and NCD
- Road tax
- Maintenance and wear & tear
- Parking and tolls
Before committing to any vehicle, do your homework and use available tools to calculate your full cost of ownership. Most importantly, stick to your budget and choose a car that supports your financial goals, not one that strains them.