Bank does not charge handling fee to the hirer, as they alreay earn thru the progressive interest in your loan repayments. Instead, they usually give handling fee to the dealer that sells you the car.

Technically, you cannot transfer the loan from your current car to new car. You need to settle off the loan for your current car either on your own, or if you sell to a used car dealer (or a direct buyer), they should settle on your behalf, after having settle the difference between the selling price vs loan settlement.

You will need to apply for a new loan all together for the new car or used car that you intend to buy. CHeers.

If the car is less than 10 years old, interest rate is around 3.8% with most banks .

For cars more than 10 years old (but not exceeding 17 years), it is possible to get a loan from Aeon Credit but the interest rate is more than 5.0%. Normally, banks prefer to go through a used car company as a mediator for disbursements purpose.

Different rates. Generally, national cars are usually higher (more than 3.X %) whereas non-national is at around 2.5X %, but subject to the loan amount and tenure.

What loan document is that ? Is it the Letter of Undertaking to the dealer? Maybe you can post a snapshot of it for discussion?

Bro, can I suggest one thing, why don't you ask the bank concerned and seek their clarification directly. Bank is obligated to tell you the whole truth on what that amount represents.

If you have not signed the loan agreement, and have not parted with your down payment, then there is no problem if you wish to abort the deal. But you may need to discuss with the seller /outlet on any booking you have paid.

Once your loan agreement is signed, the dealer may proceed to register the car. If the car is not yet registered, then you still have a chance to abort the deal. However, if the car is already registered, then there is no backing out anymore.

Having said that and as a general statement, I hope and urge all those who wish to buy cars to think thoroughly before committing to a purchase. It is not good to give the sales people the run around, only to change your mind at the last minute, after all the effort he/she has made to secure the loan for you.

The common & basic rule of thumb is that your monthly installment for a car should not be more than one third of your total income. However, most people have other commitments which are way higher than this.

The only way to "save" is when you do an early FULL Settlement.
Unlike Housing loan where the interest is on remaining principal, you cannot save by simply making advance payment for car loan as it is based on fixed rate.

IMO, the difference in the interest rate of 0.03% is very small and negligible. Perhaps convenience should be the priority .
Take for example if you take 80,000 loan for 9 years, the difference in the monthly installment amount is only abour RM2 per month. If you do payment thru IBG, you will need to pay RM2 for the fee anyway.

You can certainly buy car without taking a loan, there is no problem. However, you must highlight the matter to the outlet when placing the booking as it may affect the selling price.

Unlike housing loans, car loans are based on fixed interest rate. That means, if you take a loan of 5 years, but when you do the settlement in 2 years time, you will not get to save the remaining 3 years interest (on pro-rate basis). Instead the bank will probably give you a rebate of only 1 year or 1.5 year, to take into account of other charges (stamping fees, admin cost etc). Therefore, it is best if you take the shortest tenure/period possible, provided that you are comfortable with the monthly installment in the initial years.

This is a very subjective question and depends on many factors ... brand, comfort, condition, safety, previous car history etc....

Received news that Interest rate for Public Bank will go up again effective Monday 9th November. Those who wish to lock in at the old rate, please do your submission to the bank latest by tomorrow. Good luck!

Sometimes, if you don't have any credit / loan history, bank is reluctant to lend because they are unable to tell if you are a good paymaster- hence the need for a guarantor to strenghten your case and justify the approval. It is always good to start off with some credit cards and ensure that your payment is prompt before you apply for any car loan.

It depends on your objective.

Assuming you don't have any other investment plan, one should always take the least amount of loan and the shortest tenure possible if your objective is to SAVE .

However, having said that, you need to ensure that your monthly installment payment amount is comfortable and not too straining on your monthly expenses. It is not practical to stretch your finances to the max, so much so you don't have any liquidity whatsoever for contigencies.

In the example you have given, if you take 5 years loan, and settle the full amount within 3 years, please note that the interest you save from the early settlement is NOT 5-3 = 2 years!!! Bank will give some rebate on the interest but it won't be on pro-rate basis. You will still loose about 12 months interest or more (in the example given). The computation of the balance settlement will take into account of things like admin charges, stamping fee etc...

Normally, when buying a new car, your SA would put on paper to the bank that your current car will be traded-in , in order to reduce your financial commitment.

Yes, generally, banks are reluctant to do direct financing, as they need invoice from the company in order to issue the disbursement.

Used car rate is around 4%. Quite standard.

Normally around 3.9 to 4.2%