Malaysiaminilover

Author: Angelina Soul

  • Buy a Proton Saga with cash: Wise or not?

    2008 Proton Saga
    We received an email from Tracy who decided to buy a Proton saga but in dilemma either to pay it with cash or go for a short term loan. Here is her message to us.

    “Dear Angelina, I read two articles in Malaysiaminilover, one is regarding tips to buy a Proton Saga and another one is smart or stupid to buy car with cash in Malaysia. Both articles help me a lot but I am still in dilemma. I am about to buy a used Proton Saga with the price tag RM25,000. I enquire several banks and the best loan interest rates I can get is 3.8%. Can you please give me an advice is it wise to buy it with cash or loan it for a year?”

    In order to give you a better explanation, let us back up a little bit. Generally, there are only three situations: The loan rates are equal with the ROI (Return On Investment) rates on the cash you have, or the loan rates are higher than the ROI rates, or the ROI rates is higher than loan rates. The ROI rates here means the percentage of what you will earn if you put this money in either bank, stock market, or some other investment funds. Here we made several calculations to show the exact figure by estimating the car value will depreciates to RM22,000 after a year.

    If you pay the car with cash

    • Cash paid for car: RM25,000
    • Cost for car loan: RM0
    • Earning lost on cash: RM0
    • Monthly car payment: RM0
    • Cash on hand after a year: RM22,000

    If loan rates = ROI rates

    • Cash paid for car: RM0
    • Cost for car loan: RM25,000 * 4% * 1 year = RM1,000
    • Earning on cash: RM25,000 * 4% * 1 year = RM1,000
    • Monthly car payment: RM2166
    • Cash on hand after a year: RM22,000

    When both of the rates are equal, does it sounds like you are borrowing your own money through the bank? It is not recommended to take a loan in this case because the process to obtain a loan involves many other costs like processing fees, document fees, and stamp duty cost.

    If loan rates > ROI rates

    • Cash paid for car: RM0
    • Cost for car loan: RM25,000 * 4.5% * 1 year = RM1,125
    • Earning on cash: RM25,000 * 4% * 1 year = RM1,000
    • Monthly car payment: RM2177
    • Cash on hand after a year: RM22,000 + RM1,000 – RM1,125 = RM21,875

    If what you going to spend is more than what you can earn, it is not a wise decision too.

    If loan rates < ROI rates

    • Cash paid for car: RM0
    • Cost for car loan: RM25,000 * 3.8% * 1 year = RM950
    • Earning on cash: RM25,000 * 4% * 1 year = RM1,000
    • Monthly car payment: RM2162.50
    • Cash on hand after a year: RM22,000 + RM1,000 – RM950 = RM22,050

    Is it really worth to go through all the hassle processes and just save an extra RM50 in a year? The answer is no. However, if there is a higher return rate above 6% it may worth to consider. 6% ROI on RM25,000 is RM1,500 and the earning will be RM500 a year in this case.

    Think whether the cash will be needed in near future. If the cash is just small part of what you have, buying a car with cash will be wiser.

  • Top ten box cars

    Design is limitless whether in clothing, automobile, or many other things in life. There are famous automobile designer who creates well-known cars with extraordinary outlook. Giorgetto Giugiaro is one to be mentioned. He is a famous Italian automobile designer who designed some notable cars including the De Lorean DMC-12, Ferrari 250 GT Bertone, Ford Mustang Giugiaro, Lotus Esprit for James Bond and the 1993 Lexus GS. Luc Donckerwolke who brings the 2001 Lamborghini Diablo VT 6.0, 2002 Lamborghini Murciélago, (more…)

  • Volkswagen 1-litre: $600 dollars car for 258 mpg

    Volkswagen 1-litre

    The 42nd Annual General Meeting of Volkswagen AG on April 2002 in Hamburg has brought the world a hope that world’s most economy car is about to born when Dr. Ferdinand Piech drove a concept car from Wolfsburg to Hamburg. The concept car is a two-seater rear-wheel-drive small car. The seat is designed in tandem like the Messerschmitt Kabinenroller from the ‘50s rather than side-by-side like ordinary car to keep its aerodynamic and also giving larger side crush zone. Everyone who has seen this car during Dr. Piech’s journey was shocked.

    Volkswagen 1-litre

    With the dimension of 144 inches in length x 49 inches in width x 44 inches in height, driver can easily have a glance by turning only the eyeball when sit in the car. As for the engine, it is powered by a singled-cylinder with three valves. The curb weight of the car is very light at 639 lbs. There are several strong men can perform bench press with this weight. With such light weight and simple engine, the average fuel consumption is 258 mpg or one liter for 109 km. It is even better than the best electric car mileage available in the market today.

    Volkswagen 1-litre

    The biggest challenge for Volkswagen’s Research and Development division is to create a reliable car with all the safety features that could achieve 100 km for 1 liter petrol. It took them three years to bring this little car on the road. “It really is a fascinating experience to drive through the night at 100 km/h with the fuel consumption indicator showing just 1.0 liter for 100 km, and nothing but the stars above your head”, said Dr. Thomas Gänsicke, Project manager. Lightweight body, aerodynamics design, newly invented starter-alternator, tires and other special components are what make this car a reality but not just a dream. The car body uses carbon fibre and remains unpainted. Subframe and wheels are built with magnesium-allow with the purpose to reduce the total car weight but not scarifying the safety.

    Volkswagen 1-litre interior

    Details of the car:
    Make: Volkswagen
    Model: 1-Litre
    Displacement: 299 cc | 18.2 cu in. | 0.3 L.
    Weight: 639 lbs | 289.9 kg
    Fuel consumption: 258 mpg or 0.99 liter for 100 km.
    Power: 8 bhp @ 4,000 rpm
    Top Speed: 74.6 mph | 120 km/h

    Volkswagen 1-litre
    Last few years, rumors flying around saying this car will be released in China in 2010 for just $600 which is 4000 RMB. However, we believe the price tag will never happen. Volkswagen delayed the production until 2013 and we have never seen any more news regarding this little car with high fuel consumption. Whether it is truth or fiction, let’s hope this car will be on sale soon at reasonable price.

  • Honda Thailand scrapped 1055 cars to convince its customers

    Honda scrapped car

    Severe flooding happened in Thailand last year October has causes 1055 Honda cars to completely become scrap metal. These are brand new cars and sitting in Honda Thailand factory waiting for its new customers. Unfortunately, the flood water comes before the new customers. These cars cannot be sold because all of them had been sunken in flood waters and covered by mud. Honda tried to take action to save these remaining cars before the flood water comes but time is inadequate, resulting 1055 cars have to be the victim of the flood. Individual is able to save their car from flood but not Honda that has over one thousand cars sitting in the factory in Nikom Rojna industrial estate.

    During end of December 2011, the flood situation eases after rain stops. Honda Thailand has to clean up the factory just like many other companies do. They have to clear these cars after they suffered a massive financial loss due to the factory being non-operational for several months. More than 60,000 units of vehicle could not be produced and now 1055 completed cars have to be cleared. We would have to say Honda did a great job in the scrapping process to prevent the cars from ever being sold. Every car is scrapped completely and become a piece of metal for recycle purpose.

    Honda scrapped car

    There are six stations for the scrapping process. At first station and second station, brake fluid, transmission fluid, power steering fluid, engine oil, and coolant were completely drained. Air condition refrigerant is discharge too in order to protect the environment during the scrapping process.Battery, wheels, exhaust pipe, fuel tank, car hood, bumper, side mirrors, and engine were removed before the car send to scrapping zone. Plastic parts, dampers, radiator, condenser, wiring, spare tire, and transmission were removed at third and fourth station.

    Honda scrapped car

    Basically, the body and all other parts are killed in the process to prevent it from being resold again including suspension, sub-frame, brake pump, fuel system, and engine. At fifth station, wheels were drilled with holes or damaged by Honda engineers with fire gun to avoid someone have them cleaned up and resold. Other components get destroyed in this station. All the recycle materials including battery, rubber, plastic, aluminium, steel, and metal go to the right place for recycle in the last station.

    The most painful part of the process is the total value of these cars which has not revealed by Honda. There are 217 units of Honda Brio, 213 units of Honda Jazz, 353 units of Honda City, 150 units of Honda Civic, 91 units of Honda Accord, 30 units of Honda CR-V, and 1 unit of Honda Freed out of 1055 cars. Base onThailand market value for the cheapest model for all cars, it is approximately 417 million Thai baht (approximately 13 million USD as of January 2012).

    Honda scrapped car

    Honda’s mission is to convince their customers to believe their quality in new vehicles. Cars and parts affected by flood will never be sold. The process is being done inRojanaIndustrial Parkunder the witness of media companies, Honda dealers, Ministry of Transport and Communications, and some other government agencies. Vehicle Identification Number (VIN) of every car is published atThailand’s Honda website. Source from Honda Thailand.

  • List of cars under $10000 dollars for 2012

    cars for $10000 dollars

    Considering the average new car price has shot up to over $30,000 for 2012, many consumers had shifted their aim to buy used car instead of a new one. It is weary for many people to serve a car loan for couple years. It is also tired to tolerate the depreciation of a new car in the first two years of ownership. Therefore, here we did a research and come out the list of cars under $10,000 dollars or cars with the price close to $10,000 for 2012 base on the information from local newspaper classified, online used car portal including Edmunds, Kelly Blue Book, and Autotrader. Some of these cars are cheap to buy, give pretty good mileage, and easy to maintain.

    2004 GMC Yukon

    The 2004 GMC Yukon is best for people with large family who need a spacious car for up to nine passengers. It has large boot for luggage when the 8th and 9th seat is not in use. Powerful engine, strong body, and roomy are what best to describe it. The thing that is not so good about the car is the interior material and also fuel efficiency which could be better.
    Market price: $8,500 to $9,000
    Fuel economy: 14 city/18 highway mpg

    2006 Honda Accord

    The 2006 Honda Accord is a great sedan, solid interior, safe to drive as it achieves high scores for crash test, and the name “Accord” is reputable across the country. An Accord with hundred thousand miles put on the engine is nothing compared to other cars in the same category.
    Market price: $8,500 to $9,000
    Fuel economy: 23 city/31 highway mpg

    2007 Ford Ranger SuperCab

    Go go Power Ranger, go go Ford Ranger. Whether it is the XL, STX, XLT, or SPORT version, the Ranger never let you down with the 4-liter V6 engine either on-road or off-road.
    Market price: $8,000 to $9,000
    Fuel economy: 21 city/26 highway mpg

    2006 Ford Mustang

    Muscle car lovers will love Mustang. It is one good choice for people who want a cool retro V8 ride with the budget below $10,000.
    Market price: $8,900 to $10,000
    Fuel economy: 17 city/26 highway mpg

    2006 Ford Explorer SUV

    The truck-based 2006 Ford Explorer is an excellent SUV. Good handling, luxury and quiet interior with enough space for its passengers. With the new car price for 2012 model from $28,280, the 2006 is yet another choice for SUV lovers.
    Market price: $9,100 to $10,000
    Fuel economy: 14 city/19 highway mpg

    2010 Kia Rio Sedan

    Good fuel economy, attractive price tag, and near-to-new. The 2010 Kia Rio Sedan is definitely a great choice for consumer who prefers a close-to-new ride but wants to avoid the first two years depreciation. The only thing disappointment we have for this car is bad crash test result.
    Market price: $9,500 to $10,000
    Fuel economy: 28 city/34 highway mpg

    2007 Chevrolet Impala

    With 3.5L V6 flex-fuel engine, the 2007 Chevrolet Impala is a quiet and powerful six-seater car. Attractive outlook as well as stylish interior. With the budget under $10,000, LS and LT can be considered. LTZ and SS is with the market price from $12,300 to $13,500.
    Market price: $9,600 to $9,900
    Fuel economy: 18 city/28 highway mpg

    2007 Ford Escape

    For 2007 model year, only the XLS is below $10,000. It will be a good choice for those who prefer newer model year with basic performance. Otherwise, 2006 Ford Escape XLS, XLT, and XLT Sport are good powerful cars with V6 engine, large cargo capacity, and under $10,000 dollars.
    Market price: $9,200 to $9,800
    Fuel economy: 21 city/27 highway mpg

    2007 Ford Taurus

    The Ford Taurus is one of the cheap used cars in the market. The interior is roomy and can fit up to six persons although it is often called a midsize family car.
    Market price: $7,500 to $8,500
    Fuel economy: 18 city/25 highway mpg

    2007 Honda Civic Sedan

    Highly recommended based on the details inspection we did on a 2007 Honda Civic. Great mileage, comfortable interior, reliable engine, and most important, very low maintenance cost over the year. Definitely a 5-star sedan car!
    Market price: From $8,500
    Fuel economy: 26 city/34 highway mpg

    2006 Toyota Camry Sedan

    The Toyota Camry is a car aimed for the USmarket. It has all it takes for an American to enjoy the car. Roomy, strong reputation, good safety features, and high second-hand value. See the 2012 Toyota Camry.
    Market price: From $8,800
    Fuel economy: 21 city/30 highway mpg

    2005 Volkswagen Jetta Diesel

    What else can be happier when the car price is cheap and the fuel is even cheaper for a car? The 2005 Volkswagen Jetta Diesel it the one, yes it is! The car is powerful with TDI power plant although it is diesel-powered. The interior is made with high quality materials and not those cheap plastic materials.
    Market price: From $9,400
    Fuel economy: 31 city/39 highway mpg

    That is the top 12 our editor picked. If that is not your flavor, the rest of the cars under $10,000 dollars in the list here may be suitable for you.

    1. 2004 Cadillac CTS: from $8,900, 17 city/24 highway mpg
    2. 2010 Chevrolet Aveo Sedan: from $9,000, 27 city/35 highway mpg
    3. 2009 Chevrolet Cobalt LT: from $9,900, 25 city/37 highway mpg
    4. 2007 Chevrolet Silverado 1500 Regular Cab: from $9,200, 14 city/19 highway mpg
    5. 2008 Dodge Caliber Wagon: from $7,900, 24 city/29 highway mpg
    6. 2007 Dodge Caravan SE: from $7,700, 17 city/24 highway mpg
    7. 2005 Ford Expedition XLS: from $9,000, 13 city/18 highway mpg
    8. 2005 Ford F150 SuperCab: from $8,600, 13 city/18 highway mpg
    9. 2005 Honda Odysse: from $8,600, 17 city/23 highway mpg
    10. 2009 Hyundai Accent Hatchback: from $7,400, 27 city/33 highway mpg
    11. 2008 Kia Optima: from $8,900, 21 city/31 highway mpg
    12. 2009 Kia Spectra LX, EX, or SX: from $8,200, 24 city/32 highway mpg
    13. 2008 Mazda MAZDA3: from $9,000, 24 city/32 highway mpg
    14. 2005 Mercury Sable LS: from $6,200, 18 city/25 highway mpg
    15. 2007 Nissan Sentra: from $8,200, 24 city/31 highway mpg
    16. 2007 Pontiac Grand Prix Sedan: from $8,700, 18 city/28 highway mpg
    17. 2008 Pontiac Vibe Wagon: from $9,900, 26 city/33 highway mpg
    18. 2007 Scion tC Hatchback: from $8,700, 20 city/27 highway mpg
    19. 2008 Toyota Corolla CE, S, LE: from $9,400, 28 city/37 highway mpg