Wah Wah Wah Ambank fix rate right? Not variable?
I thought 2.16% for 9 years is damn good already and yours is 1.88%. Survey across all bank this is lowest Liao next lowest is HL for 2.27%

Yup, Ambank fixed rate.

Toyota Yaris G

PBB
60k
2.58%
7 years


CIMB
60k
2.6%
7 years

new car buyer here

Perodua Alza

70k
9years
2.54%
Maybank

Hi. My friend is getting a Myvi H.

The loan is approved by Affin bank

42K 3.48%

Is this considered normal or high?

Used or new?
Looks like used car interest rate?

CRV AWD

Ambank
2.26%
140k
5 yrs

New car booking and still need to wait for 4-6 months until the arrival of the car. The agent says Myvi rate loan tends to be higher than other cars.

This post has been edited by tcken: May 31 2023, 09:33 AM

oh...
yea, for some reason, rates for national cars tend to be higher.
didnt know it is that high, almost used car rate

Read posts before you that Perodua Alza can get below 3%. You may ask your friend try out other banks for comparison. Well it depend on the car owner financial background too for such rate to be given.

I got shocked too when I received the offered rate. Is that possible to apply for another bank loan without going through the agent?

i asked my banker before on this same question and apparently, the reason is that the risk for the bank of hire-purchasing a national car is deemed higher.

yes, you can walk in to any banks to apply for a loan. most buyers don't do it because it's a tedious process and time consuming. note though, your SA may be a bit "unhappy" if you source your own loan because then he/she would have less commission payment from the loan application side.

for some stupid reasons, the bank assume ppl who buy national cars and used cars are from "lower income group" which deemed to be high risk.
They just blanket the assumption for all different kinds of cars and buyers.

One who buy a new Yaris is assumed to be less risky than another person who is buying Ativa..

This post has been edited by OrangeGrove: May 31 2023, 05:12 PM

i don't think the risk factor refers to the individuals but rather the product (car) itself. this is what i think is true.

a Myvi costs RM60,000.00 and a Yaris costs RM83,000.00, assuming each car suffers a depreciate value of 10% p.a. then at the end of the first year, the Mvyi will be at RM54,000.00 and the Yaris is at RM74,700.00 but given Toyota's track record and market reputation, the Yaris could suffer less depreciation.

Assuming again that the loan interest rate for both cars is at 3% p.a. and is on a 5 year loan tenure, this generates the total loan amount payable of RM62,100.00 for the Myvi and RM85,905.00 for the Yaris 10% down payment. At the end of the first year, the outstanding loan for the Myvi should be at RM49,680.00 and the Yaris at RM57,519.00.

with this simple minded calculation, the difference between the marketable value and the outstanding loan amount payable for the Myvi is too close for comfort to the financier and because of this, the financier has to rake up the interest to "recover the risks" first.

i remember many years back when i bought my F10 and opted for BMW Credit as the financier because the interest rate is much lower compared to all other financiers, asked the SA why and she said it's because BMW Malaysia actually "subsidized" some of the difference in the interest rate to make purchasing their cars more attractive since everyone knows continental cars depreciates like crazy and maintenance costs are high, second hand value for these are almost non-existence.

This post has been edited by shaniandras2787: May 31 2023, 05:50 PM

This is higher than what I got for used car. City 2017 56k loan 9yrs@3.47%. Got 3.26% for 7yrs but I choose 9. Maybe can try submit other bank also and compare. High chance the loan offer can expire also before got car and need to renew. Will be getting a different rate by then.

Thanks for the replies. I'll check with another bank and see. :S

Nah... VW Ford Peugeot are even worse product, worse depreciation.. but these new cars can get 2.4% interest rate..
So the credit scoring goes back to buyer demography

i don't think so you can still get VW / Ford at 2.4% now, visited the showroom last month and was offered a rate between 2.8% - 3.0% (depending on the tenure), tcken's friend was offered 3.48% for a Myvi.

furthermore, the entry price for a new VW/Ford is relatively high compared to local brands and this makes buying a used/second-hand much more viable and for vast majority, unless desperate, will get a brand new one.

that rate was before the OPR was raised.. but the point is foreign car brand interest rate is lower than local ones in general.. it has nothing to do with car depreciation as you mentioned earlier..
So.. because these cars likely to be bought by group of buyers with higher purchasing power, thus the risk is lesser on them..
If you are saying that interest rate has to do with car depreciation so that point dont hold water because VW suffer more deprecation rate than MyVi. Moreover, MyVi is easier to flip in used market than VW. (I had a VW and I know how shitty the depreciation is) So why VW gets a lower rate and perceived as lower risk? Because their buyers are generally more capable to repay and lower default rate. So it is the buyer group. You get what I mean..

This post has been edited by OrangeGrove: Jun 1 2023, 11:06 AM

Depends on your credit rating, local or foreign car, number of loan year.
Local car Maybank five year if good credit rating can get 3.3% kua

If early settlement can get intesrt discount.

This post has been edited by g5sim: Jun 1 2023, 08:18 PM