9X regrets buying a car on installments: Losing 300 million and bearing a financial burden

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 1.

Only 25 years old, just graduated from school for two years, Anh Duy (living in Hanoi) immediately thought of buying a car to “polish” the image, also to facilitate in finding customers. Having been given 200 million by his parents, he calculated that he would borrow another 400 million to pay in installments in 5 years to buy a car that costs more than 500 million VND, plus the rolling cost is enough.

Thinking in his mind that each month he pays the bank about more than 8 million, with a salary of 12 million then plus an estimated total bonus of 16 million/month, Duy thinks that the installment payment is completely within reach.

The car that he chose in 2017 was Suzuki Swift, with the main reasons being suitable for the existing finances at that time, also looking good, not being criticized as a service car like Toyota Vios, but somewhat worn out. to MINI Cooper from the UK. The cost of going to sea for a Swift at that time was about 620 million, but plus the installment interest, it became 700 million dong.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 2.

“Back then, I was still young, adding the innocence of youth, so I made the mistake of not carefully calculating other costs,” Duy confided.

Duy lives in an apartment building on To Huu Street, his office is on Ly Thuong Kiet Street, so the daily commute to work is up to nearly 10 km.

He shared that the cost of parking on the street caused him a headache. On the street, an inch of land is an inch of gold, if you want to park your car in the right area with a parking sign, it costs no less than 200,000 VND per day.

Luckily, Duy found a familiar car park nearby and paid more than 2 million a month to send it. In the apartment, he lost another 1 million to pay the monthly parking fee. Thus, every month, Duy spends more than 3 million VND just to park the car.

Regarding gasoline, Duy said that he spends more than 1 million per month (depending on the month) to travel. He thinks that he is lucky to choose a car that is very fuel-efficient, so it doesn’t spend too much money on gas.

Another fee incurred that Duy does not anticipate is painting, repairing and taking care of the car. As a new driver, Duy cannot avoid collisions. Of course, this car has insurance, but to do care services such as polishing or cleaning the interior, Duy still has to go to the garage outside to work. He said the cost of buying insurance, the overall car spa as well as the periodic maintenance of the car costs about 12 million per year.

“Each amount is only 1 – 2 or 3 million, but when it comes together, it becomes a monthly burden. The salary to work in the end does not leave any money. At first I thought everything was fine, but after 3 years, I started to get discouraged. Because my income increases every year, it also helps me somewhat, I still try to use the car for the 5th year now”, Anh Duy shared.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 3.

COVID-19 severely affected Duy’s income in 2021. He thought about selling the car to have money to invest in other profitable areas.

“I fell back when the showroom mechanic paid 350 million VND to buy this car back. At that time, I searched online and found that the car was only valued at around 400 million VND. That means the car depreciated to more than 300 million VND – a number that shocked me,” Duy said.

Until now, Duy is still confused between whether to sell the car or not. The amount of money received is too small compared to what has been spent in the past 5 years. Anyway, he said the car also helps him more convenient at work.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 4.

“Every year new cars come out with new technology, I feel sorry for the car I am using. Even the Vios, which used to be a car or service, is now equipped with nothing. Recently I looked at the Raize and was really shocked with the equipment on a car for just over 500 million VND, even cheaper than the price I bought Swift in the past, “said Duy.

According to Anh Duy, the 2017 Swift is too outdated after only about 3 years, let alone 5 years. He had to upgrade an Android screen, replace a new set of speakers, add a reverse sensor and reverse camera. The car seat must be covered with leather. All those extra toys cost him about 30 million dong. He thought about upgrading the lights because the original halogen lights were too dark, but when he knew the cost was about 10 million VND, he hesitated.

“Additional items when sold are not added at all, considered as gifts to the next owner. I’m happy with myself, but when I sell the car, it loses a lot of value,” Duy added.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 5.

From the perspective of a banker, working in the financial industry, Mr. Duy made a comment about borrowing money from a bank to buy a car on installments: “Before making a decision to buy a car on installments, You need to balance the following 3 main points: One is to balance your finances, if you have unused capital to buy, let’s invest more, don’t put all your money into buying a car. Second, be mentally prepared for monthly debt payments plus additional costs incurred during use. Finally, choose for yourself a durable car that keeps its price over the years so that it can be easily sold later when you need a large amount of money or to exchange for a better car. Ensuring the above 3 points, I believe that car buyers will not be regretted.”

Some other pictures of Vu Anh Duy’s 2017 Suzuki Swift:

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 6.

The car has been repainted and spa a few times due to scratches. The wheels have also been repainted.

9X regretted buying a car on installments: Losing 300 million and bearing a financial burden - Photo 7.

Halogen lights are a drawback on a car that costs more than 600 million VND.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 8.

The interior of the car has been re-upholstered in leather instead of the original felt.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 9.

Screens and speakers are added to enhance the entertainment experience.

9X regrets buying a car on installments: Losing 300 million and bearing a financial burden - Photo 10.

The new car has run less than 25,000 km after 5 years of use.

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