Category: Proton

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  • 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.

  • The death of the hero Proton Wira

    Proton Wira

    Proton Wira was born in 1993 as the official second son of Malaysian car maker Proton. It serves the country very well for 15 years and it is almost the only car for most of the youngster inMalaysia to pick up their girls in the ‘90s. Wira is means hero in Malay language. The price, performance, and the reliability of the car make it a real hero for the market. Why such a good car deceased in 2007 and replace with Proton Gen-2?

    Proton Wira

    What about the outlook? When the Proton Wira first launched in 1993, it gained consumer’s heart because it is no longer as square as the Proton Saga. From front to rear, the car is perfectly design. Besides, it has many after market parts and allow owner to modify to whatever kind of look they like with custom body kit and some cool interior accessories. Some Mitsubishi parts are also compatible to the Wira too.

    The Wira is available for sale as a four-door sedan and four-door hatchback which known as Wira Aeroback. Both models are also spacious and able to fit in 4 adults comfortable and up to 5 adults. The Wira is as nice as other competitor in the market during its launching. However, one main reason Proton decided to cease the production is because the car did not receive much major upgrade throughout the 15 years. Compare to Honda Civic, one famous model from Honda, many engineers are continuously doing research and develop a better Civic. Look at the picture below here and you will see the difference.

    honda civic comparison

    On the left is 1993 Honda Civic (fifth generation) and on the right is 2007 Honda Civic (eight generation). Now look at Proton Wira again from 1993 to 2007.

    compare 1993 1997 proton wira

    It makes no different other than some grills or the bumper. Front are rear are still remain the same. Although we have previously praised that the Wira is nicely design, but it still has to change to be better throughout the time because that was 15 years!

    What about the performance? The Wira has a wide range of engine capacity including 1.3L, 1.5L, 1.6L, 1.8L, and 2.0L diesel engine. With the curb weight of only 980 kg, the car can eventually fly with fast acceleration even with 1.3L 4G13 engine. Four-door sedan model are slightly heavier with the curb weight of 1011 kg. But still passengers will have the feeling of “flying” when the car reach 120 km/h or faster. People once said a 100,000 km on a Honda engine is nothing and we will say 200,000 km on the Proton Wira engine is nothing too. Most of the Wira running on the road are over 100,000 km on the odometer.

    What is special about the car? The Aeroback model is best known to kill corners due to the light weight of the car. It is fun to ride around. What else? The air-conditioning is extremely cold. It may due to the hot weather inMalaysia and the car maker is purposely target on this.

    What about the feature? It has everything a car need. A standard stereo, a nice steering wheel with perfect size for anyone, a beautiful interior panel, and a good sitting position are what you can find in the car.

    What isn’t so good? Although the engine is nothing when the car runs 100,000 km, the power window has something. Most of the consumers experienced that the power window stop working after few months using the car. Some consumer even experience that the power window isn’t working after purchased the car just out from the show room.

    The Proton Wira isn’t only a hero forMalaysiamarket but it also exports to some other countries includingUnited Kingdom,Singapore,Thailand,Australia, and among others. One thing we couldn’t understand is the name “Wira” has been imprint in many consumer’s heart and why don’t continue to create a better second generation and just simply replace it with the Proton Gen-2. It takes 15 years to market a car name and why just simply wipe it off. RIP for this car that you may use it to fetch any girls before.

    2000 Proton Wira

    Proton Wira front view Proton Wira side view Proton Wira rear view
    Proton Wira rear view Proton Wira interior Proton Wira interior

  • Car buying tips: Buy a Proton Saga

    This is a very good and useful car buying tips written by one of Malaysiaminilover’s editor about buying a Proton Saga. When a person plans to buy either a new car or a used car, many factors have to put into consideration. This article has almost all the factors you need to consider either buying a new car or used car. Hope it helps our readers here. The article starts here. (more…)

  • Proton Cars

    Proton Wira

    Proton cars give a total new feeling to automobile lovers when the first Proton car Proton Saga was introduced to the world in September 1985.

    Malaysia-born car manufacturer Proton was founded in 1983. In Malay, Proton is acronym for Perusahaan Otomobil Nasional, meaning National Automobile Enterprise. Proton is a huge success for automobile industry in Malaysia. It is currently the owner of the famous sports cars maker Lotus. (more…)