For those who want to own their 1st car, it is a wise move to buy a 2nd hand car.
Buy a 15 years old proton saga 1.5i ( automatic , power sterling)
Cost: RM5000 (pay CASH)
Insurance: RM277.50 ( comprehensive), can even buy 3rd party insurance – cheaper
Old CAR?? Believe me, the maintenance cost is much lower than the interest payment if we get a new car!

Use the car for 3-5 years, and then only buy your dream car:

Buy a new Honda Civic 1.8 iVtec
Cost: RM113,800
Insurance: RM3225.90 , after No-claim Discount (NCD) 55% – we only need to pay RM1451.65
That means we save RM1774.25 every year onward of car insurance premium!

RM1774.25 x 3 = RM5322.75

So, can we consider our 1st car FREE?

Want to know how much you should spend on your next car, read this article.


Personal finance author and trainer

    14 replies to "Get your 1st car FREE"

    • […] Lesson 1: Get a used car as your first car […]

    • Helmy

      Hi KC, can we transfer the NCD of old car to the new one right after we purchase one i.e. the first year of insurance? Someone from the insurance company said it is not possible to transfer the 55% NCD on the 1st year instead must be 2nd year on wards.

      • KCLau

        I don’t know about your agent. But we just did that last year no issue at all.

        • Helmy

          Thanks KC, may I know which Insurance company that you use for that matter?

    • […] to be in. After 5 years, you can use your accumulated money as down payment for first house or to get your first car free just like KC Lau. But wait, you are only eligible if your monthly income or combined household income is less than […]

    • raj

      provided you dont cause an accident and end up losing your NCD!

    • Dream Car Blog

      Well who wouldnt love to get a car for free

      Specially their first car

    • fathersez

      This is an excellent suggestion. Lucky that you brought up this post again.


    • […] Lesson 1: Get a used car as your first car […]

    • […] don’t make any offense. Eventually, I still broke it sometimes. What to do? I am driving the 8th generation Honda Civic. You will never realize that you are speeding unless you always keep your eyes on the digital […]

    • […] That’s why I said it is so crucial to get your first car free! […]

    • […] for more freebies? Here they are: Get your first car free Get a free CD Win a free Nintendo Wii Free advertising network Free business […]

    • Ryan

      Wow! This is the first time I saw this kind of calculation. It’s very usefull for people who just graduated or going to graduate soon. Thanks for your information. I will share the info with my friends.

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