This is the way I understood it. You see the changes in interest rates structure depend on reasons that are both internal & external to financial markets.

In general, an increase of interest rates may be an anti-inflationary policy of the central bank. As the interest rates are mainly used to fine tune the business cycle, they will fall in recessions slightly but steadily rise with recovery & finally will be increased at the end of the growth period to brake possible inflationary dynamics.

I certainly welcome any other opinions as well .

20 y.o car for loan, it needs miracle though, most probably you have to folk out all your cash

Not quite so. It all depends on the economy. Back in 1998, our interest rate went up like there is no tomorrow to prevent the total destruction of MYR. However, approximately 10 years later, Bank Negara slashed the key interest rate instead. Why ? This is mainly to increase spending.

When the economy is up and everything is good again, interest rate should go up as you can see with Indonesia and Brazil. As a matter of fact, many actually see the 3.7% (the 12-month fixed deposit rate before the subprime mortgage crisis) too low for Malaysia. The normal rate should be around 4%-5%, so they say.

This post has been edited by MilesAndMore: May 25 2010, 01:41 AM

That's why i'm trying my luck to see if any bank still can provide loan with such old car.

Car value is around 56k, probably downpayment 10k? Can get loan?

3.5% for honda just call them today

Thanks for the explanation.. its all depends on zeti and the gang though..

Hello, i heard those SA saying the interest will be increased TODAY. can some one please update me?The average interest for 5 yrs, 7 years n 9 years? Thanks

But I heard the interest will be increased next week. So,which SA is telling the truth?

Naik ke? Dang...

Yes..increase 0.25% next Monday.

Just called the bank. For a 7 year loan for a non national used car is - 4.1%

New car rates were published in today's Star newspaper.

Really? Great.

So, if want to get a new car better do it by this friday.

I'm planning to do the booking this friday.

if malaysia continue to adopt low interest rate, it will head to a catastrophic economic melt down where currently everyone retail and business increasing the balloon size (loan) until the day comes when it has over extend them self and leave no room (prepare) for non performing economic cycle. When that period comes, all these people (retail & business) will find them self without any income unable to serve loans that they acquired earlier on at a cheaper rate, increase non performing loan (npl) and defaults.. company and individual will go bankrupt... only people/business that are smart enough to not over extent them self will survive during these period... we have seen it before in 1987 & 1998, only the financially sound survived..

This post has been edited by Sham903n: Jun 3 2010, 09:25 AM

I heard new interest rate will depend on the car CC and is same for both national and non-national car

Eg.
0.0 - 1.4cc = X.XX%
1.5 - 1.8cc = x.xx%
Higher than 1.8cc = x.xx%

Mine is 2.5%

wow only 2.5? BTW anybody know what is current rate for imported car (honda 2nd) for 9 yrs loan
and 7 yrs oso

i was looking for a 2nd hand national car for my GF. did any1 here got the latest info of the interest rate for the used car? need to run for the used car lot again

i just got this rate from SA. myvi 2008 (A) for 4.75% . 9 years loan &
Wira Se (M) 2003 - 5.5% 7 years loan
anyone knws the current interest rate for 2nd hand car. mind sharee here Ty !

This post has been edited by xiong: Jun 12 2010, 05:30 PM

waa.. is that true? so high for a used car.. im regret not to buy last year..