Everyone has a dream car in mind — maybe it’s sporty, maybe it’s practical, maybe it’s just anything that isn’t Dad’s old sedan (mine’s the Mazda 3 hatchback, by the way). Owning your first car feels exciting, almost like a rite of passage.

But that dream doesn’t just come cheap, it also comes with financial commitments that last well beyond the first drive. Here are some factors to consider to help you decide whether now is the right time to take the wheel of your first car, taking into account your financial planning and the ownership cost.

Ask yourself “Why?”

Before you even look at car loans or compare models, get clear on your why.

• Is it for daily commuting where public transport isn’t practical?
• Because everyone else has their own car?
• To make family errands and responsibilities easier?
• Or simply for the comfort and convenience of having your own ride?

Being honest about your needs will help you decide if buying a car now is a necessity — or a want that can wait. If something is more of a want, the purchase can be put on hold, allowing you to focus on other, more pressing needs.

Read also: 7 Practical Tips To Manage Your First Salary As A Fresh Graduate

Understand the real cost of car ownership

Once you know your why, figure out what you can realistically afford. Showroom prices are just the tip of the iceberg. Owning a car comes with layers of ongoing costs:

 

• Loan repayments: Most first-time buyers take a 7–9 year hire purchase loan.
• Car insurance & road tax: Higher for young or new drivers, varies by car size.
• Fuel, parking & tolls: Small costs that pile up quickly each month.
• Maintenance: Tyres, servicing, batteries, unexpected breakdowns.

Good to know: The RON95 petrol in Malaysia is currently subsidised by the government, keeping prices relatively steady for everyday drivers. However, since policies can change, it’s sensible to budget with some flexibility for potential fuel price changes.

Read also: Buy Or Rent — What’s Right For You?

New vs used cars: which makes more sense?

 

New cars have their appeal — modern, equipped with the latest technology, and often come with a manufacturer’s warranty. However, they cost more, and their value begins to depreciate the moment they leave the showroom.

On the other hand, well-maintained used cars can be a more cost-effective alternative. They generally cost less, and you may find models in good condition with more manageable ownership costs.

Before deciding, consider your budget, daily requirements, and long-term expenses such as maintenance and car insurance. In many cases, a 2- to 3-year-old used car is sufficient for everyday use and more affordable.

Do you really need a car? Alternatives to consider 

 

Sometimes, the smartest choice is not buying a car yet. If the train, bus or e-hailing gets you everywhere without much hassle, a car could just be an expensive convenience. Plus, you still get to enjoy being the passenger princess (or prince), no parking stress, no tolls, and no petrol panic.

Quick checklist

Before saying yes to your first car:

✅ Do I have at least 20% down payment saved?
✅ Will monthly instalments stay under 20% of income?
✅ Am I ready for car insurance, parking, and tolls?
✅ Do I really need it, or can I rely on public transport for now?

If you answered “no” to most, it may be worth holding off and exploring other transport options first. Whatever decision you make, the important thing is to choose an option that suits your financial situation and lifestyle.

Owning a car brings freedom and independence, but it also comes with responsibilities.
Your first car can make life easier and more convenient, but it’s worth thinking twice before taking the plunge. Make sure it truly fits your needs and budget, because once the keys are in your hand, it’s yours for better… and for worse.