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Not too high salary but driving an expensive car, can / should it happen? RM200,000 car?

Many of our friends could be driving an expensive car. If we are earning a RM6,000 salary, could we drive a RM200,000 car? This is usually a hot debate and this would also come out, “we buy unnecessary things to impress people we don’t necessary care.” By the way, for some circumstances, driving a much better car will help to get people to believe you more and thus they would be more willing to listen to you because then they could also be like you; driving that luxury car.

Some examples of those circumstances? E.g, multi-level marketing (I do not think any leaders here should drive an old dilapidated car and anyone would listen to his teaching). In the real estate world, if an agent is a top performer and he drives an old national car, people may question if his results were real… A CEO of a MNC needs to also drive a proper car because he may be attending external meetings and it reflects very badly on the organisation if the CEO was driving a loud-noise-making and rusty car…

driving an expensive car
Photo by Erik Mclean on

Coming back to the question. If we earn RM6,000 could we be driving a RM200,000 car then? Brief answer is, why not? Affordability wise, take a look at how much one has to pay every month for a RM200,000 car. It’s JUST RM2,117 per month if we take a 9-year loan and even if it’s a 7-year loan, the answer is still a yes; it’s affordable for someone earning a RM6,000 salary per month. Monthly repayment would be RM2,593 for a 7-year loan.

But… RM6,000 salary may not be net pay

We assume 15% of the salary goes into EPF contribution and tax deduction. Therefore, RM6,000 is left with just RM5,100 net pay every month. If it’s a 9-year loan, the person still have close to RM3,000 for his rental and other expenses. Perhaps he could rent a room… then everything will be just fine. If it’s a 7-year loan, then he would be left with RM2,507 per month. Still enough lah. Just do not go for Happy Hour every day lah.


This article basically tells all of us WHY someone earning RM6,000 could be driving a car which made us wonder how and wonder why. Do not wonder too much, it’s actually possible yeah. In fact, stretch it a little bit more and someone with RM5,000 salary could also drive a RM200,000 car! Life’s about choices yeah. This time, will not give any of those old-fashioned advice. Just enjoy what you love! Calculation wise, I have shown you yeah.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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