{"id":18498,"date":"2021-03-03T19:00:00","date_gmt":"2021-03-03T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/buy-or-share-car.html"},"modified":"2026-03-26T16:01:58","modified_gmt":"2026-03-26T08:01:58","slug":"buy-or-share-car","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/transport\/buy-or-share-car.html","title":{"rendered":"Should You Buy A Car Or Share One In Today\u2019s Financial Climate? SOCAR, Moovby and Kwikcar Explain."},"content":{"rendered":"\n

Is car-sharing an affordable and convenient alternative to car ownership? You won\u2019t have to worry about car loans, insurance, road tax and repairs anymore, but how does it work? We spoke with SOCAR, Kwikcar and Moovby to find out. <\/strong><\/p> \n

\n

[toc]<\/p> \n

Like a drop of milk in a pot of kopi O, the presence of car-sharing providers has steadily expanded and transformed the automotive market. For Malaysians who used to spend a sizable portion of their income to own a car, a viable alternative for personal transportation has emerged: car-sharing. In fact, car-sharing apps, which can be found on the App Store and Google Play, have been thriving<\/a> for the past few years.<\/p> \n

Instead of allocating thousands of ringgit yearly and numerous hours to pay for your car loan instalment<\/a>, insurance and road tax<\/a>, as well as maintenance and repair costs<\/a>, you can rent a car only when you need to travel, and the rental duration can be for a few hours, days or even months!<\/p> \n

In the COVID-19 era, where job losses and pay cuts<\/a> have become commonplace, car-sharing is an option you may want to consider, especially if the financial burden of owning a car is too daunting. These days, there are several car-sharing apps to choose from. Using apps like SOCAR<\/a>, which operates a fleet of it own cars, is also a hassle-free process<\/a>:<\/p> \n

    \n
  1. Download the app.<\/li> \n
  2. Select your preferred time, car model and pick-up zone. Book and pay.<\/li> \n
  3. Collect your car at the pick-up location. (You can unlock, lock and start your vehicle using the app.)<\/li> \n
  4. Once you\u2019ve finished using the car, return it to the same location. (You can also use the SOCAR-2-YOU<\/a> service, which will deliver the car to your desired location. Car collection is also provided.)<\/li> \n<\/ol> \n

    You can also opt for peer-to-peer car-sharing apps<\/strong> such as Moovby<\/a>, Kwikcar<\/a> and TREVO<\/a> (a SOCAR subsidiary). Through this approach, you can rent vehicles from car owners. The renting process is just as simple:<\/p> \n

      \n
    1. Download the app.<\/li> \n
    2. Choose your desired car according to location, price and model.<\/li> \n
    3. Pay for the booking via the app.<\/li> \n
    4. Pick up the car from the owner at an agreed location and time.<\/li> \n
    5. Return the car to its owner when you\u2019re done. (You\u2019ll usually receive the car with a full tank, and you\u2019re expected to refuel the car before returning it.)<\/li> \n<\/ol> \n

      Costs of owning a car<\/h2> \n

      To give you a clearer understanding of how much you\u2019ll be spending, here are the estimated costs<\/strong> of owning a Perodua Myvi 1.5L H <\/a>(priced at around RM50,530<\/strong>).<\/p> \n

      Car loan<\/h3> \n

      Let\u2019s say you\u2019re taking out a RM45,000 car loan over a five-year period while making a RM5,530 down payment. The example below shows the total amount you\u2019ll be paying once the interest charges for your loan are included.<\/p> \n \n \n \n \n \n \n \n
      Total car loan amount<\/td> \n RM45,000<\/td> \n <\/tr> \n
      Interest rate<\/td> \n 4%<\/td> \n <\/tr> \n
      Loan term<\/td> \n 5 years<\/td> \n <\/tr> \n
      Total monthly payment (installment)<\/td> \n RM900<\/td> \n <\/tr> \n
      Total paid via loan over five years<\/strong><\/td> \n RM 54,000<\/strong><\/td> \n <\/tr> \n <\/tbody> \n<\/table> \n

      (You can also use this Monthly Installment Calculator<\/a> by CIMB Bank to get an estimate for your car loan.)<\/p> \n

      So after five years, the total amount you\u2019d have spent on your car would be: RM5,530 (down payment) + RM 54,000 (total paid via loan over five years) = RM59,530<\/strong>.<\/p> \n

      Related:<\/strong> #BreakingItDown \u2013 The True Total Cost Of Car Ownership In Malaysia<\/a><\/p> \n

      Road tax and car insurance<\/h3> \n

      According to this road tax calculator<\/a> on Oto.my, if you\u2019re in Peninsular Malaysia, you\u2019d have to pay RM90 annually<\/strong> for your 1500cc Myvi 1.5L H., which amounts to RM450 over five years<\/strong> (the road tax is even lower if you\u2019re in East Malaysia).<\/p> \n

      As for car insurance<\/a>, you\u2019ll have to take into account various factors such as the type of insurance, your car\u2019s market value, and your No-Claim Discount <\/a>(a reduction in the cost of your car insurance for every year where you don\u2019t make a claim). Based on this CarBase calculator<\/a>, here\u2019s a rough estimate of the cost of car insurance for a Myvi 1.5L H during your first year of ownership<\/strong>:<\/p> \n \n \n \n \n \n \n \n \n
      Market price of car<\/td> \n RM50,530<\/td> \n <\/tr> \n
      Coverage type<\/td> \n Comprehensive<\/td> \n <\/tr> \n
      Location<\/td> \n Peninsular Malaysia<\/td> \n <\/tr> \n
      Engine capacity<\/td> \n 1401-1650 cc<\/td> \n <\/tr> \n
      No Claims Discount<\/td> \n None \u2013 0%<\/td> \n <\/tr> \n
      Total car insurance in one year<\/strong><\/td> \n RM280.80<\/strong><\/td> \n <\/tr> \n <\/tbody> \n<\/table> \n

      Again, this is just an estimation. As you know, your car\u2019s value depreciates<\/a> from the moment you drive off the lot, so subsequently, the total car insurance you\u2019ll be paying each year changes as well.<\/p> \n

      If you\u2019re looking for an affordable car insurance plan that offers good coverage, do check out our guide on the best car insurance deals in Malaysia!<\/strong><\/p> \n

      \"\"<\/a><\/p> \n

      Car depreciation<\/h3> \n

      According to Southeast Asia-based used car trading platform, Carsome<\/a>, vehicles like the Perodua Myvi, Proton Saga, Toyota Vios, and Honda City tend to lose 20-30%<\/strong> of their value in the second year. This was based on internal data research conducted on the thousands of cars sold via the platform.<\/p> \n

      To get a more accurate evaluation of your car\u2019s current market value, you can use Carsome\u2019s free valuation and inspection service<\/a>. There are also many other sites out there \u2013 such as MyCarInfo <\/a>\u2013 which provides free tools to gauge the current value of your car.<\/p> \n

      Related:<\/strong> #BreakingItDown \u2013 8 Things That Affect Your Car\u2019s Resale Value<\/a><\/p> \n

      \"buy-or-use-car-sharing-1\"
      Your car\u2019s value tends to depreciate from the moment you drive off the lot, so subsequently, the total car insurance you\u2019ll be paying each year changes as well.<\/em><\/p> \n

      Maintenance and repair<\/h3> \n

      Based on the calculations provided on the Perodua portal<\/a>, the service maintenance costs for a  Myvi 1.5L H in Peninsular Malaysia are:<\/p> \n \n \n \n \n \n \n \n \n \n
      Mileage<\/strong><\/td> \n Peninsular Malaysia<\/strong><\/td> \n East Malaysia<\/strong><\/td> \n <\/tr> \n
      10,000km<\/td> \n RM177.70<\/td> \n RM184.70<\/td> \n <\/tr> \n
      20,000km<\/td> \n RM213.32<\/td> \n RM220.32<\/td> \n <\/tr> \n
      30,000km<\/td> \n RM268.77<\/td> \n RM279.97<\/td> \n <\/tr> \n
      40,000km<\/td> \n RM539.46<\/td> \n RM565.76<\/td> \n <\/tr> \n
      50,000km<\/td> \n RM213.32<\/td> \n RM220.32<\/td> \n <\/tr> \n
      Total<\/strong><\/td> \n RM1,412.57<\/strong><\/td> \n RM1,471.07<\/strong><\/td> \n <\/tr> \n <\/tbody> \n<\/table> \n

      Related:<\/strong> #BreakingItDown \u2013 Guide To Buying Your First Car in Malaysia \u2013 Here Are The 8 Things You Should Know<\/a><\/p> \n

      Why some people prefer car-sharing<\/h2> \n

      If you choose to rent a car, you do not have to worry about all the financial factors mentioned above.<\/p> \n

      Less financial burden<\/h3> \n

      According to Kwikcar<\/strong> co-founder and CEO Jared Chan, millennials and the younger generation prefer accessibility and flexibility instead of being tied down with financial commitments for a long period of time.<\/p> \n

      (This makes sense especially when you\u2019re just starting to earn your own income as a young adult<\/a>. At this stage in your life, it\u2019s important to make sure you\u2019re spending within your means<\/strong>.)<\/p> \n

      Chan also spoke about the changing consumer demands in the car-sharing market during the pandemic. While short-term car rentals (people who rent cars for weekend getaways) have been affected, Kwikcar has recorded an increasing number of users who are opting for peer-to-peer car-sharing subscriptions<\/a> (long-term car rental plans that can last up to a year).<\/p> \n

      Speaking with CompareHero, the Kwikcar CEO pointed out that car-sharing subscriptions will cost about the same as owning a car, but users have the flexibility to stop renting their cars whenever they want.<\/p> \n

      \u201cBasically, you are not tied to a five-to-seven-year consumer debt, and you also have the option to swap cars during the subscription period,\u201d he explained.<\/p> \n

      \"buy-or-use-car-sharing-2\"
      There are a variety of cars that are available for rent on Kwikcar \u2013 from affordable vehicles like the Perodua Axia to flashiers rides such as the 2015 Mercedes C180.<\/em><\/p> \n

      A Kwikcar subscription for a 2016 Perodua Myvi (1500cc)<\/a> will cost you RM1,200 a month<\/strong> if you\u2019re looking to rent the vehicle for six months. The subscription also covers the car\u2019s insurance, roadtax and routine maintenance costs. A 24\/7 roadside assistance service and doorstep delivery (within the Klang Valley) are also available.<\/p> \n

      \u201cIf you have a flat battery, the roadside assistance service personnel will come to change your battery or charge it so you can bring the car over to the nearest workshop. If you have a flat tyre, they will also change it for you. All these are covered in the subscription,\u201d Chan added.<\/p> \n

      The chance to swap cars during subscription is also an attractive option for car lovers. If you can afford to rent a pricier ride, there are a variety of vehicles such as the BMW 528i 2011<\/a> (from RM3,500 a month)<\/strong> and Mercedes C180 2015<\/a> (from RM4,200 a month)<\/strong> that are available on the Kwikcar platform.<\/p> \n

      Besides that, Chan highlighted that peer-to-peer car-sharing has also become a platform for car owners to generate income<\/strong> during the pandemic-induced economic downturn. To safeguard the wellbeing of users during the pandemic, the company ensures that every car owner cleans their cars before the next user picks it up. Every car is also equipped with hand sanitisers and antibacterial hand wipes.<\/p> \n

      Adapting and thriving with the new normal<\/h3> \n

      Meanwhile, SOCAR Malaysia<\/strong> managed to register a healthy double-digit percentage growth in turnover last year, despite feeling the impact of the MCO, as more people seek self-drive transportation options which reduces contact with non-household members<\/strong>.<\/p> \n

      SOCAR Malaysia CEO Leon Foong told CompareHero that the firm is still seeing a strong demand for short-term rentals.<\/p> \n

      With many urban young Malaysians stuck in apartments or in multi-person households, the trend we’ve seen from our data is that they rent cars to go buy essentials and run errands such as going to banks,\u201d Foong said.<\/p> \n

      \u201cSOCAR-2-YOU<\/a> offers unparalleled convenience as you can pay only for the hours you need and have the same convenience as having a car right at your doorstep. Last year during the RMCO period, we also saw a huge uptake in demand due to a rise in domestic tourism and people opting for land instead of air travel,\u201d he revealed.<\/p> \n

      SOCAR Malaysia has also learnt to adapt to the challenges of the pandemic by rolling out new types of products including:<\/p> \n