How are you doing out there? It's second week of August now, I can't believe time passes that fast! If you're following me on instagram @janejane_fong, you might have known that I bought myself a new car recently. Getting my own car was my biggest dream ever, especially when I desperately need to go somewhere but I missed a bus or the public transport system at that particular place sucks. Yet, when I finally can afford to buy a car, a few big question marks popping in my mind: what is the procedure of purchasing a car? How to deal with the bank and what documents to prepare?
I was totally clueless until I went through everything. So perhaps these tips might help anyone of you who are planning to buy car but same clueless like me. Lol.
Step 1: Choose a car
There are so many aspects to look through when comes to decide which car you're going to buy. Despite of the physical appearance (I believe this is what most girls taking into consideration at first place), safety, affordability and maintenance fees are important too. It you're unsure or not understand the features of your dream car, you may visit the car showroom to consult the experts there and test drive the car. Reselling price is another aspect to look into if you're planning to change your car shortly after few years.
I had chosen Myvi SE1.5 because it is small in size so definitely suitable to driving newbie like me. Even though the quality might not be as good as other imported cars, the price is affordable, thus it won't be too burdening for my current salary.
Step 2: Dealing with the bank
Once you have decided which car you gonna buy, next step is dealing with the bank. At this stage, you need to decide the amount of money you need to borrow from the bank and for how many years you gonna pay back. You may decide after comparing the interest rates from different banks. You needs the following documents for application:
- Photocopy of your identity card and driving license
- Pay slips from the latest 3 months
- Offer letter from your current employer
- Pricing details of your car (your car dealer should have prepared this for you)
For example, the price of Myvi SE1.5 is RM56400, the maximum amount I can borrow from bank is RM 50000 (approximately 90% of the total price). I had chosen to pay back in 5 years, so the interest rate was 3% and monthly installment is RM 959. For your information, the longer the pay back period, the higher the interest rate. So decide wisely based on your affordability!
Step 3: Approval from bank
Usually it takes around 5 working days to get the approval for your application (of course it might vary with different banks). Once the bank had approved your application, you need to go to the bank again to sign some agreements (not 'some', actually freaking a lot). At this point, you need to know the paying method for every months as well as the due date definitely. You may choose to pay via cheque, cash deposit, bank transfer and etc depends on which one is easier for you.
P/s: It will be easier to take half day off to settle all those stuffs.
Step 4: Get the car
After signing all the documents, your car dealer will be notified by the bank. After that, all you need to do is pay the rest amount of money and let the car dealer to settle all those troublesome stuffs for you, such as car insurance and road tax. Within 1 or 2 days, your dream car suppose to reach your doorstep! Check your car and ask your car dealer if there's anything unsure. After all these, you may live happily with your car and don't forget to pay debt monthly, haha!
|Ta-daa! My pretty car :D|
Important message: Drive safe and be an ethical driver!
Till then, see u next time!
Till then, see u next time!