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Should We Buy Car With Cash?
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aeiou228
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 Sep 18 2011, 06:15 PM
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Since the money is under the pillow, My advice is pay cash if you are buying a used car.
Your money work 2x harder for you by saving the HP interest cost which is higher than any FD rate in Malaysia.
Your car is fully paid and your money is "protected" from unwise spending in the future.
But if you are buying a new car and your income tax records doesn't commensurate with your spending, then you must take a car loan. The different between buying new car and used car from the tax point of view are:
New car: Excise duty, sales tax are paid under your name. Therefore you actually officially inform LHDN that you are buying a new car.
Used car: No LHDN tax related documents involved.
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aeiou228
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Jul 25 2015, 03:28 PM
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QUOTE(supersound @ Jul 22 2015, 10:42 AM) No penalty needed since the penalty already charged on your car loan when you took it. That's why it is flat rate, that's the penalty. I settle my 5 year loan on 13th month, savings are about rm3600 on interest based on rm6000 total interest. In some sense, I've paid 2 years interest. Savings are there as long as we settle early. Bro, can you elaborate what you meant by penalty already charged to your car loan when you took it ? |
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aeiou228
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Jul 26 2015, 11:38 AM
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QUOTE(sootienann @ Jul 25 2015, 11:04 PM) FD pays 4%. car loan interest is 2.5%. whch is better ? its a very simple calculation, dont even need business sense. I didn't calculate, but at a glance, I'm sure 2.5% car loan is more expensive than 4% FD. |
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aeiou228
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Jul 27 2015, 02:27 PM
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QUOTE(sootienann @ Jul 27 2015, 01:41 PM) conclusion: A ) buy a bmw with 1.38% interest rate or B) take a car loan and put your money in ASB Congrat to you.  You finally learned....albeit the hard way. |
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aeiou228
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Jul 28 2015, 03:46 PM
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QUOTE(13aby @ Jul 28 2015, 10:51 AM) tumpang topic , If i put 100k down payment for a 150k car . will i kena check? i have the cash but my pay slip wont approve for the installment of 150k so i reduce it to 50k loan . thinking to cash 150k straight but worry LHDN will come . My bank statement can proof my Transaction but is not making sense with what my job income currently cox is not frm my company and i not doing any business .  The import duty, excise duty, car loan agreement stamp duty will be paid to Kastam Malaysia with you good name directly tagged to such tax payments. Therefore you are automatically and officially informing LHDN that you are buying a new car. If your past declared income in LHDN record does not commensurate with your new car purchase, then the chance of receiving "love letter" from LHDN is higher than if you have sufficient declared income record in LHDN. |
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