Need to strike a balance between loan amount and loan tenure. It also depends on the interest rate, if it is 0% like VW car, of course it is no brainer to maximize the 0% interest and longer tenure, but if the interest is 3%, best to complete it in 2 to 3 years. if interest is 2.5, then 3~5 years, you can plot it in excel....

not in YOUR POCKET ... but in a bank for ~4% FD

however depending on interest rate.. if <1% for a new car , got for max tenure..

diao.. in YOUR POCKET means cash is at your disposal lah.

Cheapest car also RM30k, how to keep RM30k cash in your pocket la walao.

This post has been edited by Jason: Jul 16 2015, 06:32 PM

Just buy cash if u too rich. Did u know all supercars like lambo & ferari no loans from the bank?

All are between buyer and seller agreement. Unless you got a very very strong credit record. But most probably people use company name to buy. Just to run tax lol

30k just 3 stack of cash.. Not much actually.

i don't wear baggy pants, neither should you. and 3 stacks, you can't fold the notes. Won't fit my pants but whatever rocks your boat mate.

It's best to pay cash if you can.
I'd make an exception if the interest rate = 0% and if you are good at controlling your spending.

Just make sure that you have enough cash left after purchasing the car, at least 6-8 months of salary.

Assumption : You have extra spare cash enough to pay.
If no extra spare cash, why ask pay cash or take loan?

you want to know whether you use cash to pay car better or keep your cash to invest and take car loan better?

1)IF car loan interest 0% sure keep our own cash and take car loan.

Car loan interest even if only 3%, you think is lower than FD rate 4%, you will regret taking car loan and keep your spare cash in bank.

You lose, the longer the car loan duration the more you lose. That car interest 3% could be effectively 6%, and if 4% would be 7.9%.

So unless the spare cash you keep can guarantee return 10%, why take trouble take car loan, pay fees etc?

well said

Why does people from KWSP want to get themselves involved?

I think he meant, and I'm sure you know, it's IRB/LHDN instead of KWSP .

oh,...that is why i am wondering...
btw,..i guess it also depends on the amount of the cash paid for the car.
a friend of mine did not have income tax..just bought a RM 35k new car with cash 2 years ago..till now...no issue.

mark

well if one were to buy car in cash, I'm sure he/she have all the records /source of the $$

money given by father how? money given by grandma how? so easy escape

father / grandma give hard cash to buy car? no right, need to transfer from their account right.. that's your paper trail

This post has been edited by nexona88: Jul 20 2015, 05:26 PM

exactly, everything has a trail.

35k is a small figure, it possible not to have a trail. Ah kong ah mah their monies maybe kept under the pillow, you can't say they must keep money in the bank. Some more you can always say this relative give 10k, that relative borrow 10k. I think it cannot be proven wrong or cheating.

If one buys a car with cash for 150k or so, then it's different story.

This post has been edited by puchongite: Jul 20 2015, 08:13 PM

what if i sold my house and made 300k profit

and my wife buys a car for cash rm150K

my wife can show the money is from me as i old the house?
any way lhdn to disturb?

As long as your money sources can be explained, there is no worries. If you are asked to explain, just explain lar. No big deal.