Maintaining a car is actually a lot more complicated than merely allocating a certain amount of cash for service and such. There are actually several other types of payments like insurance, road tax and such which must be considered. So if you plan it right, there are actually some ways to save on this.
Depending on the type of car you are driving, the amount you need to pay for insurance and road tax would be different.
First you need to calculate the amount you are paying in installments for the hire purchase loan. That would form the basis of your cost. After that, you should allocate 15% of the installment and put it in a separate account. This is to help you in terms of any ad-hoc payments needed like breakdowns or unwanted minor accidents.
Besides that, if you are buying a car which is assembled in Malaysia, like Volkswagen and Honda, then it means spare parts are cheaper.
The yearly insurance for your vehicle is dependent on the value of your car. Divide that with 12 and you should have the amount needed each month. Then calculate the same for your road tax.
The rule of thumb here is that the premium needed for insurance will decrease each year while the road tax doesn’t.
So, it would be better to keep a car for a longer period of time as it means you can save more in insurance annually.
However, this would mean that the value of the car would depreciate as well. The old saying that a vehicle is an expenditure, never an investment is true because they do not usually appreciate (besides classic cars). So you might want to consider buying a Toyota or a Honda which have been known to have good second hand value after many years.