Before making a down payment for a new car purchase, please consider getting a used vehicle. The secret is to take advantage of the no-claim discount or NCD.
The tactic here is to use a very cheap old car and pay low insurance premium for the first five years. When you've reach the maximum no claim discount, only then would you pursue your dream car.
Buying a 15 year old proton sage 1.5l (automatic, power steering)
Cost: RM5,000 (pay cash)
Insurance: RM277.50 (comprehensive) or 3rd party which is cheaper.
Maintenance cost for an old car is much lower than the interest payment for a new car. After 5 years,
buy your dream car.
Buying a new Honda Civic 1.8 iVtec
After a NCD, you get a 55% discount. This means you only need to pay RM1,451.65 and you save RM1,774.25 every year onwards for car insurance premium alone!
RM1,774.25 x 3 = RM5,322.75. With only three years, you already save that much assuming you did not kiss other people's car and enjoy the full NCD, and did not make a claim. So you can consider your 1st car FREE!
Credit To kclau- Money Tips for Malaysian