I am looking for public bank car loan banker in selangor/KL, pls pm me.

Hi all,
I’m being quoted by Maybank for non local car

VIR rate
RM120k@2.21@5yrs
FIX rate
RM120K@2.32@5yrs

Hmmm.... not the greatest i suppose

btw, if i use cash to buy a car around 100k (got pay income tax, dont worry) would i be able to get significant discount from car dealer? or is it better to loan money from bank for 5 to 7 years?

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This post has been edited by Jay Chua CC: Aug 5 2020, 03:33 PM

normally, used car dealeers would waived 2-3k for cash purchase innm.

When you take a loan from bank, the car dealer actually gets a RM 600 as a form of handling fee, which is extra profit. When you buy cash, they are deprived of this. As such, car dealers actually prefer if you can take a loan, provided your loan can be approved with ease and with minimum hastle because timing is also a factor. Car industry is all about cash flow management and how fast the stocks are moved.

There's the saying that cash is king. Especially in cases where one like yourself can afford it. Rough calculation, if you paid some and took an 80K loan for say 5 - 9 years? Just cuz "loan"...Interest could be around 10K++. So IMHO, if you could use that 80K to make around 20K or more in the same amount of years?.. Then sure, go the loan route as it's smart. But this won't apply to everyone. Some people prefer to pay cash and or settle their loans quickly. Ultimately, it really depends on your financial situation and how you feel about loans.

Regarding discounts.. I don't think it'll be much la. Cuz end of the day, SA knows you want the car, you also know you want the car ... and so discounts can only be so much. Definitely not extra until more that say interest above if you use loan vs cash. Just milk as much as you can and enjoy your ride. My 2 sen.

Ah, I didn't know about this.. I always thought it's just part of the job description to close the sale...Sure more hassle to handle loan docs, apply to different banks, etc vs a clean single deposit and the car's completely yours...But i guess being paid for all that extra work (from the SA POV), is justified.

ahh yes thanks for ya two cents. im still shopping around. I always thought i would be able to get significant discount when i buy car with cash but im glad i asked around.

Got my loan approved

New car, continental brand
Loan for RM260k
Down-payment - RM10k++

HLBB - 9 years, 2.23%

Does the RM600 goes to dealership as in the company itself? What I know is it goes full 100% to the SA, the dealer doesn't take a single cent.

To the company, not to the sales person. It is disbursed together with the loan.

9 years? can you afford it?

Can I afford it?
Good question.

Sitting on a huge chunk of cash but decided to take loan and max it out at 9 years simply because I can confidently get about 8%~10% returns per annum over a 9 years horizon. If bullish, then will be anything between 10%~14% per annum.

Doing the maths, if I were to buy the car today with cash (RM270k), after 9 years, I would have RM0k and a car that is worth probably RM30k.

On the other hand, if I were to take a 9 year loan, pay down-payment RM10k and invest the balance RM260k, which, let's say, generates an average of 9% returns per annum, while at the same time, withdrawing RM2.8k++ every month from this investment to service the loan, after 9 years, I would still have RM103k and a car that is worth probably RM30k.

Both scenarios, I take it that the RM270k is gone. One I pay upfront while one I pump into an investment vehicle and let it run by itself with the auto-debit set in place to service the loan.

Can I afford to buy the car outright in cash? Probably yes, since I do have that amount in cash.
Do I want to buy the car outright in cash then? Probably no, since I'll be better off taking a loan.

Only thing that is impacted is my DSR, since I'm utilizing a fair bit of my 'financial ability to take a loan'. But that aside, seems like it makes perfect financial sense to get a loan in my scenario.

what is the different between VIR rate and FIX rate?
which is better?
im planning take HP from maybank and they offer me VIR rate 2.31 and fix rate 2.34.

don't know why always people perceive as take longest loan = cannot afford...
i have almost the same mindset as yours, take longest loan so i can free up my money do something else...

Yeah, it's a common mindset, especially among those who somewhat fall into that category. Not all, but quite a handful that think like that. From past experience, either themselves or someone they know, thus, the thinking and impression that long car loans means one is not able to afford.

Always good to know that they are financially savvy people out there like yourself. 👍

during times of historically low interest rates like now, best to take longest possible term loan and lock in the low interrest rates.

Boss ur down payment can be less than 10%?
I just gotten my loan as well for Conti car around 200k, 9yr at 2.21%

U are absolutely right. Current interest rate is so low that is better to lock in the longer tenure loan at low interest

Yeap, had quite a huge rebate as the owner of the dealership was a close friend of mine.

Which bank was yours? 2.21%, awesome rate.