Fresh grad's complex 'situationship' when it comes to transport - to buy a car or use public?

SHAH ALAM - While the prospect of owning a car can be financially risky especially for those with modest incomes, the feasibility of relying solely on public transport is not always a practical solution for Malaysians.

Universiti Putra Malaysia’s Head Road Safety Research Centre from the Engineering Faculty, Professor Dr Law Teik Hua, said although many promote the general public to use public transportation, it may not be as convenient compared to using their own personal vehicle. This he said especially applied to those with lengthy commutes.

"Take, for instance, a recent graduate residing in Putra Heights but working in Shah Alam.

"This scenario could pose a risk since certain transportation options might not cover specific areas, potentially complicating their daily commute," he told Sinar Daily, adding that it all depends on the situation the person was in.

However, Law said many fresh graduates find themselves in varied employment situations—some struggle to secure jobs, while others face lower-paying positions. This, he said, might place them in a financial risk.

“Car loans are plausible for individuals with stable incomes, it can be considered as an option provided they receive consistent payments from their workplace," he said.

Law added that it was important to note that lower-income earners can still apply for loans, but careful consideration of their financial commitments was necessary.

“The decision to purchase a car or rely on public transport becomes a nuanced choice that individuals need to make based on their unique circumstances,” he added.

In January this year, local university UCSI found that 73 per cent of 1,077 Malaysians aged between 18 and 40 are in debt. According to them, the main reasons given for taking loans were financial constraint (42 per cent), inflation (22 per cent) and luxurious lifestyle (21 per cent), indicating that about three-quarters of youths do not have sufficient capital for financial commitments.

The survey found that 30 per cent of the loans were for vehicles, 28 per cent were for education, and 16 per cent were for buying houses.

It should also be noted that vehicle loans comes in second (14.39 per cent) as factors for bankruptcy rate in the country in 2022, according to the Insolvency Department. First was personal loans with 42.24 per cent.

However, USCI results showed despite the worrying data, 83 per cent of them could pay their loans on time.

Sinar Daily had listed out brief guide of the top five reasonably priced cars in Malaysia that would be suitable for fresh graduates, along with the reasons behind their purchase.