I am currently doing a personal study on Malaysian consumerism and very interested the factors driving young Malaysians (20s and 30s) to own higher car model like the Bimmer. I am interested those who buys their own car (not the company or parents purchased car). Hope you guys can help me out here.Car price/model. age. annual income when car was purchase. why?I don't think there is a right or wrong, just wants to know the facts out there. ThanksKong
Survey. Price of car you purchased?
- Thread starter Konga
- Start date
-
Click here to become an Official Member of BMW Club Malaysia Download Form
My apologies for the typo in my earlier post. have corrected it. I am currently working in the aviation industry, drives a 2002 Altis and doing my MBA. Studies in US indicates that the typical car price is 30% of annual income but I doubt that applies to Malaysia where car price are much higher compared to our GDP.
Hellraiser
Club Guest
- Joined
- Aug 29, 2005
- Messages
- 1,875
- Points
- 0
bro, pardon my askin. what's malaysian consumerism and aviation industry got to do with the car industry...
funfer_fahrer
Club Guest
- Joined
- Apr 7, 2006
- Messages
- 1,928
- Points
- 0
Konga;325727 said:
I guess that is not so difficult to figure out. In Malaysia, I would say 30% pays a car that is equivalent to one's annual income. Another 50% pays equivalent to 150% of annual income. 10% pays 200% of annual their income. 5% pays 250% of their annual income. The remaining 5% silent millionaires pays 50% of their annual income or less.
In the States it is a different story. "The typical millionaire in our survey (one in 50th percentile) spent about $29,000 for his most expensive motor vehicle. This equates to less than 1% of his net worth (total assets minus total liabilities). The average buyer of a motor vehicle in America has a net worth that is less than 2% of that of these millionaires. Do they buy motor vehicles that cost 2% of what millionaires pay? If they did, they would spend, on average, about $580 (2% of $29,000). Instead, typical motor vehicle buyers spend the equivalent of at least 30% of their net worth for such purchases. Note also that, on average, American consumers buy new motor vehicles at a price that is 72% of the most that a typical millionaire ever spent on a motor vehicle. Does this give you some idea why so few Americans are millionaires?
...Many affluent respondents take joy in driving vehicles that do not denote so-called high status. They are more interested in objective measures of value. Some millionaires do spend considerable dollars for top-of-the-line luxury automobiles. But the are the minority. For instance, approximately 70,000 Mercedes were sold in this country last year. This translates into about one-half of 1% of the more than fourteen million motor vehicles sold. At the same time, there were nearly 3.5 million millionaire households. What does this tells us? Is suggests that the members most wealthy households don't drive luxury imports. The fact is that two out of three purchasers or leasers of foreign luxury motor vehicles in this country are not millionaires.
...Overall, these millionaires get more satisfaction from acquiring used instead of new. In purchasing cars that are two of or three years old, they feel that the original owner has paid while the vehicle was depreciating in value. They often plan to resell their used acquisition in two or three years and recoup much of their original payout. Many also feel that aggressive bargain shopping for new vehicles is a waste of time and energy. They believe that new cars are overpriced at the manufacturer's or wholesale level; in their minds, one can't even hope to buy a new vehicle for much less than the dealer paid for it. For many, the real discounts on motor vehicles can be found in the used-vehicle market."
(The Millionaire Net Door, Stanley and Danko 1996)
astroboy
Well-Known Member
- Joined
- Dec 15, 2006
- Messages
- 8,734
- Points
- 63
Hellraiser;325787 said:
Hahahahaa.... our friend is working in the Aviation sector but he is doing his MBA now and he is working on a paper about Malaysia Consumerism in Car Industry.. and he wanted to compare a point of spending 30% of personal income in purchasing a car, which is a situation is US...
Hope people understand his paper end of the day..
I am not qualify because over your age range..
30% for a fresh grads which earns about RM2k is RM600, that's quite comfy to pay of a brand new Kelisa..
(I am talking about Grads okay!!! Non grads how ah? )And it looks like funfer_fahrer has just completed a big chunk of his paper.. do quote funfer_fahrer's name in your footnote when u decided to copy that into your paper..
Good one! funfer_fahrer :top:
GhostDriver
Club Guest
- Joined
- Apr 2, 2008
- Messages
- 127
- Points
- 0
whoa....can make a lot of tom yam soup with that.... :hahaha:
E46Fanatic
Club Guest
- Joined
- Dec 7, 2004
- Messages
- 2,893
- Points
- 0
Since I am off the age range now, I'll contribute some older stats in 2001. Age 29 single not married, first bimmer was ~160% of my annual income back then. Thank God for financing haha. Loan was 6 years, car was paid off within ~4+ yrs. The car was the biggest financial commitment monthly for me back then, and the fastest depreciating asset I owned. Wise? Probably not, but managed to live to tell the tale and will never do what I did again hehe.
