No. He is not.

Back in 2005 when my mom bought her Proton Waja, we visited 4 different Proton dealers here. Most of the dealers offer us 3.7% for a 7-year loan. There was one offered us 3.2%. Luckily we visited one more dealer and they offered us 2.8% only from EON Bank.

It is advisable that you check out the interest rate yourself by visiting every banks. You should start with the bank you have an account with.
You should check out all the commercial banks in Malaysia. But please note that only local banks offer car loan. Foreign banks do not.

Look out for EON Bank and AmBank. Both are leaders in the hire purchase market.

The interest rate for national cars loan is always higher than foreign cars. So if you intend to buy a Toyata or Honda, you should be able to get an even lower rate 

Just go for the car type you can afford. Higher interest is one thing. Less expensive car is another thing. Interest rate for national car might be higher but it is also cheaper. If one doesn't make a lot of money, it is advisable that he/she just settle for a national car.

What don't you get a new car instead ? Lower maintenance ... Such as VIVA or SAGA.
It depends, try to take the shorter period one if possible.

Solse,

My personal advice, lengthen your installment period, pay a good initial downpayment, minimize your monthly installments.
This will eventually make your monthly cashflow better and you will have the extra to spare every month rather than having tough times making ends meet every month.
You can always nego with the bank for a pay up to your loan sum middle of the way through your tenure with a sum of ard 8k or 10k. The bank will be happy to restructure the loan for you.

Save up to invest. As some of the above said, Car is just another liability. Spend wisely, Invest even more wisely.
**Kenari still on sale since they're still having on their website. I guess la. haha...

OK. Let's say you took up a loam sum of 40k for your car. You applied for a 9 years installments.
Let's say after 1 year, you got an extra cash amount of around 8k to spare.
Then you go to your bank and tell the bank: 'Hi bank, I want to pay off the RM40k of my loan with this RM8k. Kindly restructure the loan for me. Thanks'

You can always call any P2 agent to find out whether they still sell the kenari.

@solsekuin44,
But for car installments you aren't gonna get much discounts even if you pay them off.  You should also work out the total interest you'll be paying then you'll decide if you really *want* that car.

My advise, don't take a 7/9 year loan; anything more than 5 is ridiculous!

Not really. It depends on how you nego with your bank.
Some might be lower monthly installments, some might be shorter tenure.
So it's totally case by case basis.

My 2 sen, remember that monthly cashflow is very important for someone that wishes to make a good start to an investment portfolio.
Because normally someone that starts working will tend to have lower nett income to spend (which i assume you are).
Some advice might not be applicable from others if they start to advice from their POV.

In conclusion, you take control of your finances. Plan and calculate according to your needs.
Work on your finances else it won't work for you.

IMO, anything more than 4 years is ridiculous.

If got extra money, DON'T DUMP INTO UR CAR LOAN. Waste money only. If you have a housing loan, DUMP IT INTO THE HOUSING LOAN coz car loan is flat and doesn't decrease the total amount you have to pay, while house loan interest is based on the balance of the principal loan.

Yes. I agree.

Quoting on what you've mentioned, u will be earning more than 2k in the course of 7-9 years. So can I say that you start with 2k?
Since you have to pay the car loan since year 1, you're not gonna pay it 7 years after right?
So you plan on what you can afford by now. As of present date.

I'm sure my earnings will be more than RM50K a mth after 5 years, but i plan my cashflow as of now.


You got your point.
all in all is know how to manage your own cash flow.

---

Added on January 18, 2010, 12:27 pm

Car is never an investment. At least for me.
Property is.

If your car can produce extra income for you, then it's a good vehicle. 

just plan where u are now .. and where u are in 5 years time..
can u cope with paying a car loan at the moment + petrol and maintenance..
how big a spender are u <-- this sentence sound weird to me.. lolz
ok .. how much will u spend monthly on other stuffs..

buying a car is probably ur biggest investment now.. the truth.. 2nd biggest investment behind your property..

I think most banks are the same. Once the loan is approved, just have to service the loan.

Service the loan means repaying the loan.

actually depend on urself..

but for me..i rather pay 10%-15% downpayment so tat the amount i take loan also wun b tat much..also monthly installment also can b lesser..benefit for tis can bargain interest with bank ..

i did tat with my car in 15% downpayment..bargain interest to 3.5% PA..good ler..

u mean u buy car without paying d/p?

not much leh...

see this early settlement calculator

from another forumer

yea the loan by UWM. One agent told me not so easy to get it, another agent which i signed my car with, told me no problem to get it.
So until the loan is approved/not approved, i cant tell u for sure