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So, you’re finally ready to purchase a new car of your own? Congratulations! Unlike in the past, the process of buying a car these days is fast, hassle-free and simpler than you think.

 

Here, we share 4 tips to help you buy your dream car the smart way.

 

Get pre-approved for car financing

Which comes first – the budget or the car? Here’s a better tip: Let’s start with car financing!

 

Why, you ask? Getting pre-approved for a car financing or a car loan can give you valuable financial insights to support your car buying process. For example, you’ll know important information such as your financing limit and the given interest/profit rate based on your credit assessment. These can help you to narrow down which car to get, how much to fork out for downpayment, and can give you an upper hand when negotiating a better rate with dealers.   

 

Try out CIMB’s 1-Minute Auto Financing InstaApproval

 

Getting pre-approved is surprisingly easy and faster than you think. Some car financing, such as CIMB Auto Financing, provide speedy approval and a simple application process. Give it a try!

 

Depending on the car financing type, individual applicants will need to prepare some documents, including:

 

  • Copy of NRIC/Passport
  • Copy of driving license
  • Copy of salary slips/other income proof for the last 3 months
  • Bank statements (Savings/Current account) for the last 3 months
  • Latest EPF/Income tax statement with evidence of tax payment

 

Most importantly, a pre-approved offer lets you purchase your car without worrying about being swindled on a higher profit rate/interest rate. If you’re not sure how much monthly repayments you can afford, you can use CIMB’s Car Financing Calculator

 

Choosing your car!

 

The best part of buying a car is,undoubtedly, going car shopping. But wait! Before you walk into a car dealership, you should at least know the type of car that you’re looking for (compact, sedan, SUV?). If you’re just getting started, here’s what to seach for:

 

  • Car comparison websites

 

If you’re clueless about which car to get, then start by going online and visit car comparison websites and blogs, or even online car buying platforms. This can give you an idea of the many, many brands and types of cars that are available in Malaysia, their prices and what fits your requirement. If you have a pre-approved car financing budget – then this makes it even easier to narrow down your car selections. 

 

  • Online Car forums
     

Know which car you want? Time to check out YouTube videos and car forums to know more about the car’s performance, review, maintenance (also spare parts availaibility and price) and of course, to see if there are any car promotions available. Speaking of promotions….

 

  • Car price
     

Take your time to shop around and compare between various dealers to get the best deal in town.

 

When you do the math, don’t forget to account for additional expenses besides the cost of the car. High-end cars tend to have higher upkeep costs, including specialised repair services and expensive parts.

 

  • Brand new or used car?
     

Here comes an age-old yet tricky question – should you opt for a used or new car?

 

With a new car, the obvious benefit would be receiving the full manufacturer warranty and, in most cases, free servicing for the first few years. Also, being the car’s first owner means that you get the safety net of repairs sorted out by the dealer should any unexpected issues arise. However, you may have to wait if the car you’ve set your eyes on is in high demand.

 

Alternatively, used cars may be a cheaper option for car buyers. Do note that if you take out a loan/financing for used cars, the downpayment and interest/profit rates may be higher. Depending on the car’s condition and the make, you should be prepared to spend a little extra for maintenance and repairs.

Do a test drive

While the Internet lets you research car models and compare prices, nothing beats a test drive. Take it out on a spin, pay attention to the driving experience, manoeuvrability (steering wheel), brakes, and interiors.

 

Most importantly, take your time and don’t be persuaded by the dealer to make your purchase right away. Instead, thoroughly explore your options to ensure you get the best deal for your dream car.

 

Additional tip: Remember that ownership costs of your new car can add up to more than the price at the dealership due to several factors such as the road tax, sales tax, optional add-ons, extended warranties, registration charges, and dealer handling fees. So always check with the dealer on the final price to avoid any surprises (and if you want, ask for extra freebies)! 

Don’t forget about insurance or car takaful!

 

Car buyers can either buy car insurance or takaful from the dealer, bank or insurance/takaful company. Before you make a hasty decision, you should compare the benefits, service, claim experience and additional coverage, especially flood coverage, instead of just pricing of each plan.

 

You can also protect yourself against losses which may occur if your car gets totalled with supplemental auto insurance/takaful called gap insurance/takaful. Gap Insurance/takaful, such as CIMB’s Purchase Price Gap Insurance, covers the difference between the vehicle purchase invoice price and the claimable amount paid by comprehensive motor insurance in the event of total loss claim.

 

Need extra coverage for natural disasters, repair warranties and more? CIMB’s Secure Motor Insurance offers drivers hassle-free renewal, which comes with natural disaster coverage such as  flood, storm, tempest, landslide, landslip coverage up to RM10,000 or 20% of Sum Insured whichever is lower, 12 months repair warranty and the option to convert premium payment into a 6 or 12 months 0% Instalment Plan. On the other hand, you can opt for IKHLAS Private Car Takaful to protect your car and help the less fortunate through the waqf fund.

 

For used car buyers, you can also opt for 6 or 12 months warranty to cover mechanical and electrical components of the used vehicle.    

 

 

With these helpful tips for buying a new car, you can make smarter financial choices to make your purchase more rewarding. Even better, you can also make smarter choices for the environment when you purchase a hybrid or electric car.  Want to get started on buying a new car? Find out the steps towards owning your first car with our car buying guide

 

For more articles like this, check out our website for more helpful financial tips and guides.

 

 

This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.