How to Calculate What Car You Can Afford with a RM3,000 Salary in Malaysia
Buying a car is exciting—until your monthly repayment eats up your salary like a leech. If you're earning RM3,000 per month, you need to be very strategic about what kind of car you buy. This article breaks it down without sugar-coating: what you can really afford, what to avoid, and how to make it work.
🚦 Step 1: Follow the 20% Rule (Max 15% is Safer)
A good rule of thumb: Don’t let your car loan installment exceed 15-20% of your monthly income.
15% of RM3,000 = RM450/month
20% of RM3,000 = RM600/month (MAX cap)
Going above that is asking for trouble—you’ll be tight on cash, and one emergency can throw your budget into chaos.
💳 Step 2: Account for Hidden Costs
Your monthly installment is just the tip of the iceberg. Don’t forget:
| Expense | Estimated Monthly Cost |
|---|---|
| Petrol (basic usage) | RM200–300 |
| Maintenance/Repairs | RM100+ |
| Insurance + Road Tax | RM100+ (average) |
| Parking/Toll | RM50–100 |
➡️ Total car-related expenses: RM500–700/month
That’s 17–23% of your RM3,000 salary — already tight.
🔧 Step 3: Realistic Budget = Used Car Territory
With a RM450–RM600 loan limit, here’s what kind of car you can aim for:
🚗 Sample Loan Breakdown:
Loan tenure: 7 years
Interest rate: ~3.5% (for used cars)
| Monthly Installment | Estimated Loan Amount | Car Price (with 10% downpayment) |
|---|---|---|
| RM450 | RM28,000 | ~RM31,000 |
| RM600 | RM37,000 | ~RM41,000 |
So you're realistically looking at:
Used Perodua Axia, Viva, Myvi (older models)
Used Proton Saga, Persona (8–10 years old)
🚨 Step 4: Don't Buy Just to Impress
Here’s the cold truth: A car is a liability.
It depreciates fast, and you’re not impressing anyone important by struggling to keep up with monthly payments.
Avoid:
High-interest loans (especially from shady dealers)
Fancy continental cars (unless you're rich inside)
Stretching loan to 9 years just to reduce the monthly payment
✅ Step 5: Buy Smart — Here's How
Buy used, reliable, low-maintenance cars.
Pay a higher downpayment if you can (reduces monthly burden).
Always check service history (don’t get stuck with someone’s lemon).
Get pre-approved for a loan before you fall in love with a car you can’t afford.
💡 Final Thoughts
With RM3,000/month income, your best bet is to keep car costs below RM600/month total. That means used cars, modest expectations, and keeping your ego in check. Focus on function, fuel efficiency, and reliability.
You’re not broke for playing it smart—you’re just being a responsible adult. Once your income grows, upgrade guilt-free. Until then, don’t let a car drive your finances off a cliff.
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