Car loan interest rate might increase effective 1 February 2018. Those who have yet to submit your loan application, please do it fast.

As far as I know, there is no minimum loan amount specified, as long as it is reasonable amount like 10K. You can't possible take a car loan of RM 500 or even 1K, right?

For loan tenure, 1 year is probably the shortest acceptable. However, for such short loan term, be prepared for a higher interest rate by the bank to cover the administration & processing cost.

Banks have of course factored the interest rate as such that no matter short term or long term, they still make money out of you.

Public bank will be increasing the interest rate for car loan effective 1st March 2018. Those of you who wish to lock in the old interest rate, today is the cut off day to submit your application. All the best.

All car loans repayment would definately be captured in CCRIS report by Bank Negara. Just like any other financial institutions, BMW Credit and Tan Chong are given licence to offer Hire & Purchase loans and they are governed by the rules and regulation of the central bank.

Assuming you don't have other investment plans, yes, a shorter repayment period is good to cut down on your bank interest, provided that it is not too straining on your monthly commitment.

For car loan, the actual effectve interest rate is about 4.5-5.0% per annum. Putting your money in FD, based on current prevailing interest, will definately not earn you more interest back.

Sometimes, the speed of processing may differ from one applicant to another. This is due to the scoring variation from the applicant's financial profile, which may require approval at Head Office level. If the scoring is excellent, it usually gets approved at the branch level, hence it may take only a day or two. As such, it is not necessary caused by the processing officer dragging his feet. Just sharing on possible causes of delay, hope you get your loan approval soon.

You can get a car loan now, but bank would most likely request for a guarantor. If you don't have a guarantor, then you need to wait for minimum 3 months to get the necessary salary slips.

Money in FD does not necesssary equate to income because such money could be a borrowed fund, ie for relatives etc and can easily be withdrawn and returned.

On the 5th year, before you are able to transfer the name to the new owner, you need to do a full balance settlement to your bank.
Normally, the bank will give you some rebate for the early settlement but it won't be pro-rated. Meaning, you will NOT get back 4 years of interest exempted but maybe just 2 - 2.5 years. This is because the bank will factor in some other cost like admin charges, processing and stamping fee.

That's why, although a 9 years loan give you the advantage of low monthly installment, but when you do early settlement on the 5th year, you will end up paying more interest than compared to a fixed 5 year loan tenure.

Car loans are usually based on flat rates., which is charged equally for each year. The interest for a X years loan is already pre-calculated and added into the principal , then divided by the number of months of the loan tenure to get the monthly installment.

For instance, if one is to take a loan of 100K at 2.5% interest, total interest for 9 years would be 22,500. Hence total interest (22,500 + principal 100,000 ) divided by 108 months (9 years) would give you monthly installment of RM1,134 per month.

As I know, some banks do offer different scheme where the calculation of interest may differ, but by and large, majority of car loans follow flat rates. You won't get pro-rated rebate when you do early settlement, especially during the early years of the loan.

For that loan amount and loan tenure of 8 Years, the rate is quite reasonable. Variable rate is subject to BLR changes and there is a possibility it will go up or go down over the years, so there is no assurance that you will save more interest. Fixed rate gives you peace of mind & stable repayment plan, so it 's really down to your personal preference.

My take is this, if you are planning to take a short term loan, then the variable rate seems OK. Or in event the BLR goes up very high, you have the option/cash to fully settle off the loan, so you don't have to incur any unplanned and undesirable high interest.

But if you are planning to just pay consistent installment based on a stable income every month, then fixed rate is probably the best.

Banks emphasize more on your company profitability , rather than your account balance. If you can prove that your company is profitable, then they will approve your loan.

Technically, you can, if the bank submitted by Car A company is willing to support. They have a relationship with Car A company to maintain and if they value this relationship, normally they want the consent from Car A company first. If no consent given, the bank normally won't do it because they rather loose your 1 case than hundreds of future loan applications from Car A Company.

The better approach is to use a different bank for Car B company, so it is clear cut and no conflict of interest.

This post has been edited by Buydirect: Jun 5 2018, 12:14 PM

Car B company is more than willing to give their VSO to the whichever bank, as long as they can get a successful sale.
However, this also depends if Car B company has any financial tie up eg floor stocking facility with certain limited banks ,and only insist that all loans go thru their panel banks only. If there is no such restriction, giving the VSO is not an issue.

Bank will definately check CCRIS for both hirer and guarantor.

Bank is doing a lot of cross selling these days , bundling Auto Life Insurance as pre-condition of loan approval.

Due to unusually high volume of orders for tax holiday, banks are all very slow in HP loan processing at this moment in time. Usual time period does not apply any more. Some banks are faster than others, some like Maybank are extremely painstakingly slow.

Most sales outlets have a long term relationship with the banks and banks do give priority to their cases, as they value their continuous support. If you are submitting on your own and it is a one off case, bank may give the same response, but I do hope they can expedite the loan for you.

On one hand, having credit card and paying promptly is good as long as good credit record is maintained. On the other hand, if you have high usage of the card , it will be taken into account as part & parcel of your commitment (just like existing car or housing loan ) and may affect the scoring, thus the approval of your car loan , unless substantiated by good & sufficient income.

Depends on what brand you buy. Some car brand have an online booking system, where once you have booked at one sales point and your booking is locked into the system, another sales point cannot key in your name and booking. This is to prevent intra-competition amongst sales outlets.

As for most brands, they do not practice this system. But you need to negotiate for the refund of your booking fee paid to the first outlet. You cannot simply transfer the booking fee to the new outlet.

As for your loan application, it is best if you can submit a fresh application thru the new outlet . However, if you wish to use the loan from the existing panel bank of the first outlet, you will need to send a letter requesting for the change of sales outlet and a Vehicle Sales Order from the 2nd outlet to the bank concerned. The bank will then transfer the Letter of undertaking (LOU) to the second outlet. However, as a matter of courtesy, the bank would normally check and get the consent from the 1st outlet before approving your request.

This post has been edited by Buydirect: Sep 5 2018, 01:27 PM