haha..u know la which la..the soon launching

local punya???

I agree with 15% of monthly, but within reason la. 15% when you earn RM 10k / month sure np, when starting salary is like RM 2-3k, 15% a bit crazy la.

But I don't understand why "guru" say max 5 year then say better to invest. If you take 9 year, you got more money to invest...

Sigh I don't know la. I was a bit silly last time. Fresh grad, earn 2.5k go buy City, 7 year. 1k / month go to car. But Ok la, I need to travel for work. So allowance mostly cover my car.

But honestly la guys, if you got car that running well and you like, dun simply chg2. Depreciating asset is the worst...

And if you have the investment or saving attitude, I recommend better to take longer loan so more money can go into savings. Interest can offset some of the cost of your loan that way.

Just my $0.02 la...

hai bro, it u drag the loan for 9 yrs or more, this will cause the car price subsequently increase (due to interest rate plus the car price).
if u take shorter loan period, at least u can clear the debt fast and no need to pay so much of interest for the next few years.

yup...so far,my experiences with proton are good..dun mind to cont so

i think i hv good spending habit..then better take 9 yrs loan la than 5 yrs??

For 5 years and 7 years, the difference is only about $100 plus per month. I will opt for 5 years loan tenure. But if $100 plus also is a amount for you then I suggest you might want to reconsider the choice of your car. Get a cheaper car that you can afford. For me I will not consider 9 years.

Taking out your savings for down payment is a big NO. Ask yourself how long it takes for your to save $20k? You want to spend it all for car purchase? What is something happen and you need the money after you purchase car? Don't touch the savings unless you have big amount and $20k is just a small portion from your savings.

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Added on February 19, 2012, 5:51 pmBy the way, get a car that suits yourself. I understand peer pressure that will effect your choice but at the end of the month you are the one that pay the loan not them.

Who don't want drive nice new car?

This post has been edited by 37867: Feb 19 2012, 05:51 PM

my loan is 3.6% for 3 yrs.. took 40k to buy an old korean

Hi, wanna to ask, which bank is easier to get approve ?
thanks

This post has been edited by mariochuah: Feb 19 2012, 07:05 PM

invest? it sounds good. but for general malaysian, ppl can hardly achieve it. malaysia generally resident income is low. which a lot of ppl are basically having zero savings.
it may sound good that you drag the loan so that your monthly commitment is lower, then u can "so called" use the extra money for investment. but in malaysia, i believe most ppl will simply use the extra money to enjoy better. so end up u will leave with zero savings still.

a lot of ppl may also said the same thing, dun buy car dun buy house to save money, in the end from i see for mostly they end up with no car and no house, and no savings also.

investment is definitely a good thing, just that majority (take note i nvr claim every single ppl) of ppl cannot do it. at least for malaysia.

from what i see most ppl are living in the way that all of the income monthly they need to calculate until cents in order to cover all the expenses, not to say about savings.
dragging house loan is still fine because house is ex nowadays, and home loan interest is calculated daily.

but most ppl drag car loan to 9 years to buy a car that is exceeding their affordability. if buy a car need to pay for so long basically means it is definitely not within your budget. not to say car loan interest are calculated and included in your total loan amount. and take note that car loan the interest rate quoted (e.g. 2.xx%) it may sound very little, but u need to beware that the interest quoted is not effective interest rate but nominal rate, which means based on recursive interest etc, u are paying minimum 5-6% or more per year for your car on interest.

all sifus here, the interest rate for a new perodua car with 3 years loan is around how many %? the longer the loan period, the greater the interest % or lower? the interest % i mean here is merely interest %, not the total amount of interest in RM

thx

i cannot brain dis..pls kindly explain

Wrong.

Unless your investment can yield your more than 5-6%, you are going to lose against the car loan interest.
And to achieve more than 5-6% in current investment environment is not easy task.

Most importantly, most people cannot even save enough, more money in hand, spend it, rather than using it for investment.
Forget about put the money in FD or saving, you are going to lose against your car loan interest.
Don't not think that car loan 2.xx% is your effective interest rate. You are not paying 2.xx% interest, even your saving give you 3.5%, you still lose against it.

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Added on February 19, 2012, 10:38 pmCar loan work like that.
You borrow 50k. If the 50K interest is 3%, and for 5 years, means 50k x 3% x 5 years = 7.5K interest for the whole loan period (average 1.5K pa).

First year, you loan 50K, paid 1.5K, yes it is 3%.
But second year, you already down 10K, left 40K, you still being charged 1.5K. 1.5/40 = 3.75 (no longer 3%)
Third year, loan left 30k, still pay 1.5K interest, 1.5/30 = 5%.
4th 1.5/20 = 7.5%

So the longer you drag the loan period, the more happier the bank is.
That's why the longer loan period, bank can give more lower rate.


This post has been edited by cherroy: Feb 19 2012, 10:38 PM

after all being said, fresh grad with 2k Plus salary are still driving city vios

That means the interest amount is not re-calculated every year based on the reducing balance lor (ie. housing loan), instead the interest has already been calculated upfront based on the total loan amount and the tenure.

If you are getting a car loan with a bank and don't know this....well god help you, really.

This post has been edited by dares: Feb 19 2012, 10:58 PM

ONLY if you can get at least 3x of the interest rate of your car loan from the investment you make EVERY YEAR then only consider extending loan for investment.

Use excel you could roughly analise at the end the interest rate is not only 2.xx or 3. xx. It is at least double.

ooo,then if let say if ASB is giving interest abt 8% p.a.should i take the 9 yrs & invest in ASB or just take the 5 yrs loan?

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Added on February 20, 2012, 4:09 pmhow if i take the loan for 9 years (just to get lower interest rate),then i try to settle the loan within 5 yrs?

This post has been edited by eistern: Feb 20 2012, 04:09 PM

that is a good value car. hope the premium variant is less than or around 70k.
with 4k/mth and a baby coming soon, is your spouse working? if yes then ok

if you have house loan or other commitment then maybe need to reconsider.

for 4k-5k salary, if u are single, and no other commitment, will be more comfortable for this car loan

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Added on February 22, 2012, 1:03 pmdon't believe rumors... but if true, then its a good news for everyone.

This post has been edited by stargate8: Feb 22 2012, 01:03 PM

Yes thats why smart ppl will never stretch a car loan beyond 5-7 yrs max. I would say if anybody cant afford to pay in 5 yrs then consider a cheaper car. Always live within your means and think about the future, 10-20 yrs down the line.

my wife also earning ard 4k/month,but she has some loans..i might be getting a house soon (of course with loan too)

hmm, as long as your combined household income minus off the expenses and loans, you must have +ve net income.