How Much Does It Actually Cost To Own A Car In Malaysia

Your car loan is usually the biggest expense in car ownership cost in Malaysia.

Let’s look at a simple example using a RM60,000 car:

• Downpayment (10%): RM6,000

• Loan amount: RM54,000

• Interest rate: ~3% p.a.

• Typical Malaysia car loan tenure: 5 – 9 years

🚩 Red Flag: A 9-year loan looks “cheaper” monthly, costs around RM6,480 more in interest compared to a 5-year loan and you’ll still be paying for a depreciated car.

💡 Pro Tip: Choose shorter tenure, higher downpayment and maintain a healthy debt service ratio (DSR) to avoid financial strain. 

Unless you are driving an electric vehicle (EV), petrol will be one of your most frequent and unavoidable monthly expenses. 

Based on Malaysia’s official weekly retail fuel data, RON95 prices have recently hovered around RM2.54 per litre, while RON97 sits closer to RM3.11 per litre.

Using these current price ranges, here’s a practical look at how much you might spend each month:

• Compact cars: RM150 – RM250 per month (light driving)

• SUV or long-distance commuters: RM300 – RM400 per month

• Typical annual cost: RM2,000 – RM3,500 per year

💡 Pro Tip: Use a petrol cashback card 💳 to help save you some extra bucks for this expense.

Regular servicing is essential to avoid costly breakdowns.

💡  Pro Tip: Budget at least RM100 – 200 per month for car maintenance in Malaysia.

Road tax and car insurance are mandatory annual costs for every car owner in Malaysia. 

• 🧾 Road tax: RM20 – RM1,000 or more per year based on engine size

• 🛡️ Insurance: RM1,000 – RM2,500 per year depending on your car, age, no-claim bonus

For young drivers with a small car, expect around RM1,500 – RM2,000 per year.

Parking fees are often underestimated when calculating car ownership costs in Malaysia. RM3 per hour at the mall feels harmless until you check your statements.

• Office parking: RM100 – RM400 per month

• Malls, events, random errands: $$$ that you forgot that you spent

That’s easily RM150 – RM400 per month just for your car to sit there.

Daily tolls in Malaysia can easily cost RM100 – RM250 per month, especially for highway commuters.

Always keep a small buffer for:

• Minor repairs

• Tyres

• Traffic fines

• Emergency servicing

Car depreciation is the silent drop in value that happens the moment you drive your new car out of the showroom. 

Whether you maintain it well or barely drive it, your car will naturally lose value every year and this makes depreciation one of the biggest hidden costs of car ownership.

Here’s how quickly car value typically falls:

• First 3 years: ~20 – 30% value drop

• After that: ~10% per year

Example: RM60,000 car may be worth only around RM42,000 after 3 years, even if it’s in good condition.

That’s RM1.5K – RM2.1K every month, not even counting depreciation.

Before signing any loan agreement, make sure your budget can handle the full monthly cost of owning a car in Malaysia, not just the instalment. Ask yourself these questions:

• Can I comfortably cover all these monthly costs?

• Will this eat into my savings, rent or emergency funds?

• Am I buying a need… or a want in disguise?

BONUS:

Use our auto financing monthly instalment calculator to estimate your monthly payments and see if you are financially ready to own your own ride. Plan well so you can enjoy your ride without money stress later 🚗💸! 

References:

• News Straits Times | General Insurance's Written Premiums Grows 6.8pct to RM23.1bil on Recovery In Vehicle Sales
• Government of Malaysia | Price of Petroleum and Diesel
• Compare Hero | How to Calculate Car Insurance Price In Malaysia