{"id":32614,"date":"2023-03-02T08:27:03","date_gmt":"2023-03-02T00:27:03","guid":{"rendered":"https:\/\/carsome.my\/news\/item\/small-car-for-malaysia-recession"},"modified":"2023-05-16T14:46:53","modified_gmt":"2023-05-16T06:46:53","slug":"small-car-for-malaysia-recession","status":"publish","type":"post","link":"https:\/\/www.carsome.my\/news\/item\/small-car-for-malaysia-recession","title":{"rendered":"Why Downsizing to a Smaller Car Is Good For the Malaysian Recession"},"content":{"rendered":"

Since last year, I\u2019m sure we\u2019ve all seen plenty of news outlets reporting that Malaysia will be facing an economic recession this year. While <\/span>Bank Negara<\/span><\/a> has assured us as of this month that the country will not plummet into a recession, it\u2019s best to remain prepared as there are still plenty of unstable factors in the global economy looming over us.\u00a0<\/span><\/p>\n

\"Large,Aside from refraining from high expenses, one such area where you can save a lot of money is in the choice of your car size. When a recession does come in full swing, it\u2019s quite common to see luxurious cars being sold off into the used car market for a smaller, economically viable one. If you\u2019re contemplating whether to sell off your luxury vehicle for some fast cash, here\u2019s why downsizing your car is a smart move for the upcoming Malaysian recession.<\/span><\/p>\n

Initial Cost\u00a0<\/span><\/h2>\n

\"UsedA general rule of thumb is to understand that cars are <\/span>depreciating assets<\/span><\/a>. Let\u2019s start with the main benefits of downsizing to a smaller car \u2013 you get a smaller initial purchase cost. A used Perodua Viva, for example, will go around \u200cRM20,000 in the used market. Say you trade in your BMW or a Mercedes at a used car dealership for some fast cash, and after purchasing a used Viva for your daily commute, you\u2019ll still be left with a lot of money. It\u2019s a win-win solution that doesn\u2019t break the bank. With some leftover cash, they can be used to cover other expenses such as housing, food, and other necessities. If you\u2019re a fresh graduate looking to get a car for your daily commute, buying a brand new car can be dangerous as it is one of the leading causes of young Malaysians <\/span>facing bankruptcy<\/span><\/a> in the country.\u00a0<\/span><\/p>\n

\"PricesConversely, demand for <\/span>used cars<\/span><\/a> will also go up during a recession. A bad economy will force consumers to look for more affordable means of transportation. With new car prices out of the question, the masses will turn to the used car market to save money. When demand for a certain commodity increase, so does its price. It\u2019s just a simple supply and demand logic. Your humble little Myvi at home can fetch a much higher price in the used car market if you decide to sell it off.<\/span><\/p>\n

Read More: <\/span>Should You Buy a Car in a Recession?<\/span><\/a><\/p>\n

Cheaper Road Tax and Maintenance\u00a0<\/span><\/h2>\n

\"RoadTrading a large 2.5L car for a smaller 1.5L one can save a lot of money on fuel and road tax.<\/span><\/p>\n

Cars with smaller cubic centimeters (CC) have smaller road taxes, are fuel-efficient, and won\u2019t hurt as much when you need to refill petrol. The current Nissan Almera that I drive daily is a 1.5L, four-cylinder engine. On average I only need to refuel once every five days for around RM57. The Nissan Almera is just one of the few cheap economy cars that will remain triumphant when the recession strikes.\u00a0<\/span><\/p>\n

Don\u2019t let the size of engines these days fool you too. Modern engines in economy cars like the Perodua Ativa or the Daihatsu Ayla (sold in Indonesia) have turbochargers to accommodate their small CC engine of 1.0L. They\u2019re not built in for power but rather for fuel economy.<\/span><\/p>\n