How to get your first car for free

Hello folks!

It has been a while since my last entry and tell you what, writing is so not my cup of tea especially when writing in a language that I only use 30% of the time. So, bear with me and read this entry till the last line before you switch to the other tab on your Firefox browser or may be your Safari or anything other than IE.

I came across this book by a guy who claimed he has a method on getting a car for free. Well, the one thing that will surely comes to your sane mind is that nothing in this world is actually free. You will have to bear the cost for everything you want to have - includes your time, energy and some money - in the end how much yield you get is the question.

Here is the step:

1. Get a cheap and cheerful car for less than RM5000 in cash.

Yes surely you can, but I don't know what kind of car. Imagine we are all living in the realm of the author who proposed this idea where there is such a used car.

2. Get yourself insured and make sure you gain your No Claim Discounts (NCD) year to year.

The tip is, don't involve in any accident. If you do, don't claim from your insurer but claim from your spouse.

3. After five years, get yourself a new car with annual insurance premium of RM3000

Remember, there is such car. Get yourself a Honda Accord for example(cheapest premium is RM3849). At this point, you are not actually paying full amount for the insurance premium because you have gained your NCD. After five years, your NCD is already reaching 50%. So, you are only paying RM1500 for your insurance.

4. After another five years, then only you get your first car for free.

Applying the 50% discount to your new car's premium, you will save RM1500 x 5 = RM7500! The cost of your first car is RM5000, plus minus all the costs which would incur to you, surely the total cost is almost 7 - 8 thousand.


I've warned you, yes if seems free, but it takes you ten years and a bit of your savings initially. If you feels like all the figures are not making any sense, just ignore it. My purpose is to make a point on how is it possible. I believe the original author does so.