Hi guys. Anyone know what's the oldest age a used car is eligible to a car loan?
Am looking at a used conti, 2011 made / 2013 registered bmw / or VW as my 2nd car.
Thanks.

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.

URGENT!

Is there a compulsory insurance for hire purchase loan (called Auto life insurance?)

After I successfully applied for a loan with Affin Bank, the officer told me I need to pay an equivalent of 0.132% of compulsory insurance for my loan in case I am not able to pay the installment due to death / serious permanent injury.

Also, the money will NOT be return to me even if I can pay all the installments.

I have bought 4 (perodua) cars before and never once were forced to buy a compulsory insurance for car loan

Please help!!!! Thank you

Thanks for your inputs but I wrote wrongly. It is 0.132% per year which is 0.924% if loan for 7 years or 0.66% if loan is 5 years.

I can understand the benefits but I think that should be optional. Personally I don't think it is worth it coz the loan period is only few years. For me mrta for mortgage loan makes much more sense coz the loan period is much longer.