Ok, here's the situation:

I have RM 35k on hand, planning to buy an Axia, and informed that the car loan is only 2.9%p.a!
So does it feasible to apply for loan, and leave the cash in bank's FD to earn 4% a year, then pay the loan slowly?

Got FD 4% per annum meh??

4.5% pun ada, but stick to the topic,
CASH or LOAN?

https://www.sc.com/my/campaign/term-deposit-i/

income tax find charge on you or you pay %rates to bank for few months. that's all depend on your choice!

I paid for my Satria Neo 45k cash.
They dont go after small fries leh.


anyway, I dont know how much is the Axia but if the loan is 35k, then you'd pay 5k after 5 years if the loan is 2.9 pa.
Can you find a way to roll your money to make more than 5k after 5 years?

FD loh, 4.5% p.a

Car loan % calculate is different formula than house loan.

while u apply for car loan, u need to pay 1++k for loan processing fee

I would go for loan even i have the amount of money you have.
In case of emergency i have disposable cash at hand

If you have the cash and don't need it for anything else, go for cash.

1. Usually you get discounts for cash purchases.
2. No interest.
3. You can can insure it for less (if you are willing to take the risk)
4. No debt.

Cash, but only if you have an additional cash reserve for emergencies. Don't forget to push for a discount!

IRB can come after you for automobile cash buyers ? I had frens who buy car cashed RM35k with work that paid RM2k per month. No IRB show up.

-edit-

This post has been edited by Aydee: Apr 27 2015, 11:11 AM

35k I think it's too small amount. Higher amount is probably case to case dependency.

Car load is fix rate by year. Your loan is for 5 years?

Means 35000*0.029=1015 (interest per year)
For 5 years: 1015*5 = 5075

5075+35000=40075
40075/(12x5) = 667.92 per month

I think you can calculate which one is better

I just bought my Axia cash because I don't want to think about mandatory monthly payment. So, I have more flexible saving and spending each month

Depends on your luck la whether kena or not. 35k may not be within their range to automatically flag you for review, but a random audit is still possible.

why not?

bank rakyat 4.1% per annum, other banks doing fd promotion having higher rate somemore.

to ts,

better opt for loan to reserve some emergency fund.

2.9% car loan is higher than 4% FD.
or in other word
4% FD is not going to win against 2.9% car loan.

There is no loan out there can be cheaper than FD rate.
Banks do not make losing business.

Please know what is EIR (effective interest rate) of the car loan.

2.9% is flat term loan, which is not translated into 2.9% pa. straight.

Use this:
http://loanstreet.com.my/calculator/flat-t...rest-calculator

2.9% flat for 5 years work out to be 5.46%

If u can INVEST for returns of >5.5% p.a., LOAN.
If u cannot, buy cash.

What investments can generate more than 5.5% p.a.? A lot...but u need to do your homework

This post has been edited by Pink Spider: Apr 27 2015, 11:42 AM

wow, sounds like i can only put into ASM then