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Car shopping: Should I buy or rent?

Getting a car is a big decision to make.

Some people say that it’s better to get it first-hand, while others say you’re better off buying a secondhand vehicle. There are also those who prefer leasing (renting) one.

A survey was recently conducted by the ‘Neue’ team to see what people in Brunei thought about car shopping.

We posed this question to them: What advice would you give a fresh graduate who recently got a job that pays around 1,000 BND a month who is thinking of buying a car?

1. Buy first hand. But pay cash!

According to a retired couple, when it comes to buying cars, it’s best to just pay everything upfront in cash.

“We should not be paying for interest in cars unnecessarily. If you have the money, it’s best to settle all payments immediately,” they said.

2. I need a loan to get a new car!

A man in his 30s said he prefers getting a brand new car but he doesn’t have much savings.

“For my peace of mind, I prefer getting a first-hand car from the official dealer. However, as I do not have much money in the bank, I would opt for a bank loan. Seven-year bank loans are quite popular in Brunei where in some cases, people don’t even need to put down a deposit,” he said.

3. Don’t be silly, get a 2nd-hand car!

According to a fresh graduate who earns a salary of 1,500 BND, buying a brand new car is a terrible investment.

“A brand new car depreciates instantly as soon as you drive it off the lot. That said, this is why I would rather buy a 4-year old car off a secondhand car dealer. In some cases, you can get it for about half the price of a brand new one,” he said.

4. Go for a BETTER deal. Lease it instead.

An expatriate working for the private sector in Brunei said he has heard so much about BETTER Sendirian Berhad, a local car leasing company in Brunei. And after doing the math, he decided to opt for this service.

“As I have a short-term contract with a private firm here in Brunei, buying a brand new car doesn’t make sense to me. I do not want to be worried about selling off the vehicle before I leave Brunei in a few years time. I’d prefer just returning the leased car after 4 years. Even though the repayment is higher than what you’d normally pay for a brand new car, but I’m impressed with the fact that the company will provide me with free tyre and battery replacements for every 30,000 km travelled,” he said.

We conducted our own survey of prices for a Toyota Vios saloon vehicle in Brunei. And this was what we learnt:

 

*Price was noted down from the website of Honey Carsmart Sdn Bhd, a used car dealer in Brunei. Current mileage of this vehicle was 274,363 kilometres.

Leasing:
According to the ‘BETTER’ app, it will cost you 406 BND per month to lease a Toyota Vios (4 years / 10,000km annual mileage plan).

Contract:
(All inclusive contract)
Free regular service maintenance
Free tyre every 30,000 km
Free battery every 30,000 km
Free brake pad every 60,000 km
Free Takaful (insurance) every year
Free vehicle license every year
Free 24-hour road side assistance

(Optional insurance)
Passenger liability
Windscreen and window
Flood and special perils
Excess buyback

Conditions:
Excess mileage charge is 0.31 cents
Purchase 500 km mileage bundle at 136 BND
Purchase 1,000 km mileage bundle at 261 BND

What are your thoughts on buying a brand new car?

You can cast your poll below:
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