Can you afford a car with RM1,700 in Malaysia?
Buying a car on a RM1,700 monthly salary may be possible, but the instalment is only one part of the cost: fuel, insurance, road tax, maintenance and repairs also need room in your budget.
Malaysia’s minimum wage is RM1,700 a month. In the scenario used by Carz, an employee below 60 with no overtime or allowances takes home an estimated RM1,501.45 after EPF, SOCSO and EIS deductions. Your actual net pay can differ according to your circumstances and statutory deductions.
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Key takeaways
- Malaysia’s minimum wage is RM1,700 a month; Carz’s example estimates RM1,501.45 take-home pay after statutory deductions.
- Perodua lists the Axia E manual at RM22,000 and the Axia G D-CVT at RM33,900, before insurance.
- Carz estimates total monthly car costs of about RM541 for the Axia E and RM680 for the Axia G. Applying the stated loan assumptions to the G’s price gives an instalment of about RM372, which would bring that estimate to about RM692.
- The estimates exclude tolls and parking and are not loan offers or guaranteed ownership costs.
- Saving RM500–RM600 a month for six to 12 months can help you test your budget while building savings for the purchase and unexpected costs.
What does RM1,700 look like after deductions?
The RM1,700 minimum wage is a gross basic salary, not necessarily the amount deposited into your bank account. The Ministry of Human Resources says the minimum wage applies to private-sector employees, except domestic workers, and refers to basic wages rather than allowances or incentives.
For its example of an employee below 60 earning RM1,700 with no additional pay, Carz estimates monthly deductions of RM187 for EPF, RM8.25 for SOCSO and RM3.30 for EIS. That leaves an estimated RM1,501.45. Check your own payslip and applicable contribution schedules before using this figure as your personal budget.
Sources: Ministry of Human Resources’ minimum-wage information, EPF contribution schedule and PERKESO contribution information.
Why the instalment is not the full cost
A monthly loan payment does not cover fuel, insurance, road tax, servicing, tyres, battery replacement or repairs. You may also need to pay for tolls and parking, depending on your route and workplace.
Carz’s estimates assume 1,000 km of driving a month and use RM1.99 per litre for RON95 under BUDI95 for an eligible Malaysian. The Ministry of Finance stated that the subsidised price remained RM1.99 per litre for eligible recipients for 29 October to 4 November 2026; eligibility and monthly limits apply. Fuel prices and eligibility should be checked again when you plan your budget.
The estimates below are budgeting examples based on stated assumptions, not quotations. Your fuel use, insurance premium, maintenance needs and financing terms may differ. Tolls and parking are excluded.
Expert tip: Before comparing cars, write down your actual take-home pay and fixed monthly commitments. Set aside a realistic amount for running costs before deciding how much instalment you can manage.
New Axia estimates: E manual and G automatic
Perodua lists the Axia E manual at RM22,000 and the Axia G D-CVT at RM33,900, with prices shown before insurance. These are different variants: the E is a manual, while the G is an automatic.
Carz’s comparison assumes a 10% down payment, a nine-year loan and an illustrative flat interest rate of 3.5%. The publication estimates about RM241 a month for the Axia E. For the Axia G, it gives an estimated instalment of about RM360.
There is a small arithmetic difference in the published G estimate: financing 90% of RM33,900 at 3.5% flat interest for nine years works out to about RM372 a month, using the stated assumptions. The table below uses that recalculated figure for the G total.
| Estimated monthly cost | Axia E manual | Axia G automatic |
|---|---|---|
| Price before insurance | RM22,000 | RM33,900 |
| Estimated instalment | ~RM241 | ~RM372* |
| Estimated total car budget | ~RM541 | ~RM692* |
| Share of RM1,501.45 take-home example | ~36% | ~46% |
*The Axia G instalment and total are recalculated from the source article’s stated assumptions: 10% down payment, 3.5% illustrative flat rate and nine-year tenure. Estimates exclude tolls and parking.
Even the lower estimate could leave little room for rent, food, bills, family commitments and savings. A bank’s decision on financing is not the same as a personal affordability check.
Sources: Perodua Axia prices and specifications and Ministry of Finance fuel-price announcement.
Could a used car fit your budget?
A used car can cost less to buy, but an older vehicle may need more maintenance or repairs. Carz’s example of a used Proton Saga estimates a monthly total of about RM620, including an instalment of roughly RM250, fuel, insurance and road tax reserves, routine maintenance, and a repair reserve.
That estimate is about 41% of the RM1,501.45 take-home example. It is not a quote for every used Saga: asking prices, vehicle condition, financing availability and repair needs vary. A low advertised price does not tell you whether the car has a complete service history or needs immediate work.
If you are considering a used car, inspect it carefully, review its maintenance records and keep money aside for repairs. Do not use all your savings for the down payment or purchase price.
Common mistake: Choosing a car based only on its advertised monthly instalment. Add fuel, insurance, road tax, routine maintenance and a repair buffer before deciding whether the car fits your budget.
A budget test before you buy
If you need a car, try setting aside RM500–RM600 a month for six to 12 months before committing. That is close to the monthly ownership estimates in Carz’s examples and can show whether your budget can handle a similar ongoing cost.
| Monthly saving | After 6 months | After 12 months |
|---|---|---|
| RM500 | RM3,000 | RM6,000 |
| RM600 | RM3,600 | RM7,200 |
If you need to use that money regularly for essentials, that is useful information about how much room your budget has. If you can maintain the saving habit, you will also have cash for the down payment and initial costs. Keep some savings available for emergencies and repairs.
Conclusion: should you buy a car on RM1,700?
A car may be within reach on a RM1,700 salary, but the full monthly cost can take a substantial share of estimated take-home pay. The Axia E is cheaper in the examples, while an automatic Axia G or used car can bring different costs and risks. Work from your actual net pay, other commitments and likely running costs before deciding.
If you are considering a used car, use the Motorist guide to buying a used car in Malaysia to review inspection and purchase checks.
Frequently Asked Questions
1. Can I afford a car on a RM1,700 salary in Malaysia?
Possibly, but affordability depends on your take-home pay, existing commitments, down payment and the car’s full running costs. The examples in this article estimate that ownership could consume around 36% or more of the sample take-home pay, before tolls and parking.
2. How much is RM1,700 salary after EPF, SOCSO and EIS?
Carz estimates RM1,501.45 take-home pay for an employee below 60 earning RM1,700 basic salary with no overtime or allowances. Your deductions may differ, so check your payslip and applicable contribution schedules.
3. What is the price of the Perodua Axia E in Malaysia?
Perodua lists the Axia E manual at RM22,000 before insurance. Check Perodua’s current price list and dealer for the latest details.
4. What is the price of the Perodua Axia G automatic?
Perodua lists the Axia G D-CVT at RM33,900 before insurance. Prices and availability may change, so confirm with Perodua or an authorised dealer.
5. How much does it cost per month to own an Axia E?
Carz estimates about RM541 a month for its Axia E scenario, including the instalment and running-cost reserves. It excludes tolls and parking, and actual costs will vary.
6. Is a used car cheaper to own on a low salary?
A used car may have a lower purchase price or instalment, but maintenance and repairs can raise the total cost. Review the car’s condition and service history, and keep a repair buffer.
7. Should I use all my savings for a car down payment?
Keeping some savings for emergencies and repairs can help protect your budget after purchase. The amount to keep depends on your circumstances and the car’s condition.
8. How can I test whether I can afford a car?
Try setting aside an amount close to the expected monthly ownership cost for six to 12 months. If you can do so while meeting essential expenses, you will have a clearer picture of your budget and some savings toward the purchase.
9. Does a loan approval mean I can comfortably afford the car?
No. Loan approval is a financing decision. Your personal budget should also account for fuel, insurance, road tax, maintenance, repairs and other monthly commitments.
Read More: The Motorist Guide to used car buying in Malaysia
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