For car loans you will find that the first half of the tenure, you are paying more interest than principle. For example, in a 5 yr loan, the first three years whatever you are paying to the bank, a larger portion of it goes to interest while a smaller portion goes to principle reduction. After three years if you intend to sell your car, you will find that the interest rebate is minimal.

Let's take a few examples, calculated courtesy of autoworld

Basis for calculation:
Car price: RM115,000
Loan amount: RM100,000
Interest: 2.5%
Tenure: 5, 7 and 9 years
Car sold after 3yrs for RM75,000
5 yr loan: (RM100,000 x 1.125) / 60 = RM1,875/mth.

After 3 yrs: Amt paid (36 x RM1,875) = RM67,500
Interest rebate: RM1,885.25
Total owing to finance: RM43,114.75

Based on the above,

Total amount spent on "renting" the car for 3 yrs is:

(D/p + Amt paid for 3 yrs) less (Sold price - Total owing to finance)

(RM15,000 + RM67,500) less (RM75,000 - RM43,114.75)

= RM82,500 - RM31,885.25
= RM50,614.75
= RM1,406/mth cost of ownership
7 yr loan: (RM100,000 x 1.175) / 84 = RM1,398.80/mth.

After 3 yrs: Amt paid (36 x RM1,398.80) = RM50,356.80
Interest rebate: RM5,529.40
Total owing to finance: RM61,613.80

Based on the above,

Total amount spent on "renting" the car for 3 yrs is:

(D/p + Amt paid for 3 yrs) less (Sold price - Total owing to finance)

(RM15,000 + RM50,356.80) less (RM75,000 - RM61,613.80)

= RM65,356.80 - RM13,386.20
= RM51,970.60
= RM1,443.65/mth cost of ownership
9 yr loan: (RM100,000 x 1.225) / 108 = RM1,134.30/mth.

After 3 yrs: Amt paid (36 x RM1,134.30) = RM40,834.80
Interest rebate: RM9,770.65
Total owing to finance: RM71,894.60

Based on the above,

Total amount spent on "renting" the car for 3 yrs is:

(D/p + Amt paid for 3 yrs) less (Sold price - Total owing to finance)

(RM15,000 + RM40,834.80) less (RM75,000 - RM71,894.60)

= RM55,834.80 - RM3,105.40
= RM52,729.40
= RM1,464.70/mth cost of ownership
So, to sum it all up:

The monthly actual cost difference between a 5, 7 and 9 yr loan, based on a car that is sold after 3 yrs:

5yrs: RM1,405/mth
7yrs: RM1,443.65/mth
9yrs: RM1,464.70/mth

and, total interest paid after 3yrs:

5yrs: RM10,614.75 out of RM12,500
7yrs: RM11,970.60 out of RM17,500
9yrs: RM12,729.35 out of RM22,500

So, in reality, there's not much that separates between 5, 7 and 9 year loans due to the current low interest rates. And, if you have better use for your cash for investments or whatever, it makes sense to take 9 yr loans.

Before or after minus BLR?

I applied for 3 loans. 162k 7yrs. All approved

2.4% PBB

2.28% Variable MBB

2.37% HLB