{"id":44839,"date":"2020-09-08T13:59:18","date_gmt":"2020-09-08T05:59:18","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=44839"},"modified":"2020-09-08T13:59:18","modified_gmt":"2020-09-08T05:59:18","slug":"cost-owning-car-ride-hailing-subscription","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/cost-owning-car-ride-hailing-subscription","title":{"rendered":"Car Ownership, Ride-Hailing Or Car Subscriptions: Which Is Cheaper?"},"content":{"rendered":"

Car owners generally fall into three camps \u2013 automotive enthusiasts, people who treat cars as status symbols and those who just need a hunk of metal to get them from point A to B.<\/p>\n

If you fall in the last camp, you\u2019re probably looking out for ways to reduce your transportation costs. After all, owning a car is expensive. An entry-level sedan could cost you RM100,000 over five years!<\/p>\n

Luckily, it\u2019s easier than ever to get around without relying on public transportation. The question is, does it make financial sense to ditch your car and Grab everywhere? Or should you sign up for a car subscription? Here\u2019s how much it costs to own a car, compared to ride-hailing and car subscription services.<\/p>\n

<\/span>What is the cost of car ownership?<\/span><\/h2>\n

The cost of owning a car<\/a> goes beyond your monthly loan commitment. You\u2019ll also have to consider petrol costs, maintenance, road tax, insurance, parking, and toll charges.<\/p>\n

Here\u2019s an example calculation based on someone who buys a new Proton Persona. She has a relatively short daily commute, and only spends RM150 a month on petrol (according to a Malaysian Institute of Road Safety Research<\/a> (MIROS) survey, respondents spent an average of RM329.67 a month on petrol, but we thought it might be fairer to use a lower figure, as someone with long commutes is less likely to use a ride-hailing service).<\/p>\n

Some of the costs we\u2019ve included in our calculations \u2013 such as maintenance, tyre replacements, road tax and insurance \u2013 only occur once a year or every few months, but we\u2019ve spread them out to reflect their true monthly cost.<\/p>\n

Car model: Proton Persona 1.6 Premium CVT (2020); RM54,600<\/strong><\/p>\n

\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
<\/th>Monthly cost<\/th>Over the first five years<\/th>\n<\/tr>\n<\/thead>\n
Loan amount<\/td>RM942<\/td>RM49,140<\/td>\n<\/tr>\n
Down payment<\/td>RM5,460<\/td>\n<\/tr>\n
Loan interest
\n10% down payment, 3% p.a. and 5-year tenure<\/span><\/td>		RM7,371<\/td>\n<\/tr>\n
Petrol costs<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Maintenance1<\/sup><\/td>RM51<\/td>RM3,050<\/td>\n<\/tr>\n
Tyres2<\/sup><\/td>RM20<\/td>RM1,200<\/td>\n<\/tr>\n
Road tax<\/td>RM7.50<\/td>RM450<\/td>\n<\/tr>\n
Insurance3<\/sup><\/td>RM102<\/td>RM6,145<\/td>\n<\/tr>\n
Parking<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Toll<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Total<\/strong><\/td>RM1,572<\/strong><\/td>RM99,816<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n

1<\/sup> Based on estimates provided by https:\/\/www.proton.com\/en\/after-sales\/service-maintenance<\/a>
\n2<\/sup> Assuming you change your tires every 2.5 years, based on RM150 per tyre
\n3<\/sup> Assuming you qualify for the no-claim discount every year<\/span><\/p>\n

Based on the example above, while your monthly loan commitment is only RM942, your total monthly cost of car ownership is RM1,572!<\/p>\n

But what happens to your monthly costs once your car loan is completely paid off? Your cost of car ownership may fall to RM609 a month:<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t
<\/th>Monthly cost<\/th>Over the next five years<\/th>\n<\/tr>\n<\/thead>\n
Petrol costs<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Maintenance2<\/sup><\/td>RM67<\/td>RM4,030<\/td>\n<\/tr>\n
Road tax<\/td>RM7.50<\/td>RM450<\/td>\n<\/tr>\n
Insurance<\/td>RM64<\/td>RM3,823<\/td>\n<\/tr>\n
Parking<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Toll<\/td>RM150<\/td>RM9,000<\/td>\n<\/tr>\n
Total<\/strong><\/td>RM609<\/strong><\/td>RM36,503<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

<\/span>What is the cost of ride-hailing?<\/span><\/h2>\n

What\u2019s the cost of an average trip on a ride-hailing service like Grab? If you have a 10km commute to work, a GrabCar trip could cost<\/a> you around RM15:<\/p>\n

Cost per trip:<\/p>\n