--- title: "Why I Bought A Second-Hand Car" description: "I traded my Peugeot for a second-hand Ativa. In this article, I'm going to reveal my journey, decision-making process, and personal car modifications. Learn from my experience." url: "https://www.mrmoneytv.com/articles/why-i-bought-a-secondhand-car/" category: "Personal Finance" author: "Finlit" published: 2023-07-26 updated: 2023-07-27 source: "Mr Money TV" --- # Why I Bought A Second-Hand Car I traded my Peugeot for a second-hand Ativa. In this article, I'm going to reveal my journey, decision-making process, and personal car modifications. Learn from my experience. ## Key takeaways - After 9 years, the author sold his Peugeot and bought a second-hand Ativa for RM47,000, deciding a six-figure BMW or Mercedes was unattainable for now. - Buying used saved about 20%: a new Ativa would have cost RM68,000, so paying RM47,000 second-hand meant a RM21,000 windfall. - He channelled that RM21,000 surplus into modifications with KL Auto Foam: a sound system and speakers for about RM2,800, a leather steering wrap for RM300, soundproofing around RM5,000, and a chassis auto-foam treatment about RM2,000. - His rule of thumb: car installments should not exceed 20% of your salary, or you risk a financial bind. - The lesson he took away: a car's value always depreciates, so think twice before stretching your budget to its limit for one. - He picked the car by stripping away the brand and focusing on what mattered to him: an SUV-height ride, quietness, comfort, and a sound system that makes journeys enjoyable. Recently, I experienced a significant shift in my life as a car owner that, honestly, even took me by surprise. After 9 years, I finally decided it was time to [sell off my Peugeot](https://www.mrmoneytv.com/post/how-to-sell-your-car-without-a-dealership) and buy a new car. After some deliberate contemplation, I made a choice that was a perfect blend of practicality and personal satisfaction—[I bought a second-hand Ativa for RM47,000](https://youtu.be/KVXyhs6N-EE). I know this might be unexpected, but let me walk you through my thought process behind buying a second-hand car. ## Reason [#1](https://www.mrmoneytv.com/articles/hashtags/1) of Buying A Second-Hand Car: The Reality of Dreams and Actual Budget Probably just like you, I've always had the dream of owning a high-end car—a sleek BMW or a majestic Mercedes. Every time I passed a luxury car dealership, my eyes would inevitably linger. But, after careful introspection and an honest evaluation of my finances, I realized that **shelling out over six figures for a car was simply unattainable** at this moment. This reality check, though slightly grim, inspired a crucial pivot in my perspective. I started to ask myself: "If I strip away the allure of the brand, what are the things that genuinely bring me joy in a car?" The answer was quite clear— an elevated car like an SUV, a soothing sense of quietness, comfort, and, of course, a sound system that could make every journey a musical delight. With these criteria in mind, I test-drove an Ativa and fell head over heels for it. It was a match made in automotive heaven, and the decision was pretty clear. When a good friend of mine proposed selling his Ativa, I didn't hesitate for a second. ## Reason [#2](https://www.mrmoneytv.com/articles/hashtags/2) of Buying A Second-Hand Car: The Unexpected Blessing of Substantial Savings This situation felt as though the stars had aligned. My friend's offer came at the perfect time— when I was actively looking to buy the very car he was selling. What struck me the most was how meticulously he had maintained his Ativa, with an impressively low mileage and a pristine overall condition. Plus, he had already added a few modifications, making it even more appealing. The most significant benefit, though, was the **financial savings**. A brand new Ativa would have put me back by RM68,000, but this secondhand car only cost RM47,000. This meant I managed to **save approximately 20%**—a windfall of RM21,000. I found myself giddy with delight, not just about the car, but the tremendous savings as well. ## Reason [#3](https://www.mrmoneytv.com/articles/hashtags/3) of Buying A Second-Hand Car: Freedom to Personalize With Car Modifications Given this unexpected surplus of RM21,000, I decided to channel it towards making my new Ativa uniquely mine. I dove into the realm of car modifications, something I'd always been interested in but could never afford before. With the help of the amazing team at [KL Auto Foam](https://www.facebook.com/Autofoam/), I managed to install a new sound system and speakers for about RM2,800, got a leather steering wrap for RM300, soundproofing that cost around RM5,000, and a chassis auto-foam treatment for about RM2,000. Each of these upgrades has greatly enhanced my driving experience, making it more peaceful and comfortable. ## The Realities of Car Ownership This journey taught me an important lesson about car ownership: **understanding that a car's value will always depreciate**. I had to ask myself, "Is it really worth it to spend so much on a car, especially if it stretches my budget to its limit?" What I can suggest from my experience is that your **car installments should not exceed 20% of your salary**. More than that, and you might find yourself in a financial bind. To give you a deeper insight into my adventure with car modifications, I've made a YouTube video detailing my experiences with KL Auto Foam. Check it out [here](https://youtu.be/KVXyhs6N-EE). Moreover, as a special treat for my followers, Auto KL is generously offering a **15% discount** on all their services until 17 August 2023. Just mention Mr Money TV when you reach out to them. You can find them at this link: [KL Auto Foam](https://www.facebook.com/Autofoam/). I hope my experience and decision-making process gives you a new perspective on car buying. For me, choosing a used car has been a winning decision. Who knows? It might be the right choice for you too. ## Frequently asked questions ### Is it worth buying a second-hand car instead of a new one? In this case, yes. A second-hand Ativa cost RM47,000 versus RM68,000 new, a saving of about 20%, or RM21,000. The car came well maintained, with low mileage and a few modifications already done. That saved money then paid for further upgrades like a sound system, soundproofing, and a leather steering wrap, instead of a bigger loan. Choosing used turned out to be a winning decision. ### How much of your salary should go to car installments? The suggestion from this experience is to keep your car installments under 20% of your salary. Go beyond that, and you might find yourself in a financial bind. The wider lesson is that a car's value will always depreciate, so it is worth asking whether spending so much on a car, especially if it stretches your budget to its limit, is really worth it.