you dont spend all cash on depreciating item. as you have figured, FD already give higher interest rate than car loan, there are others you could invest to get more interest rate. car loan would be a btter choice

As some other posters have pointed out, if you insist on getting a car loan, then you got to look beyond FD for saving the money you could spare from the loan.

FD never gives high interest than car loan. Never.

This is complete bullshit.
If you are an employee with rm60000 of annual income for the past few years. You can buy a rm90k car with cash and IRB won't look for you.

there could be other investment better. but would like to know how u so sure FD never gives higher interest than car loan? i don't think there's car loan >4%

Rather than you are looking for excuse to deny others, why not you show some data to support your bullcrap?
I just finished my car loan, and the result tells me that, you know nuts on this

You got to re-read some of the posts we all posted here and understand the concept of effective interest rate.

wow man, i was just asking nicely and expressing my opinion. i dont know which words of mine offended u or to imply im giving excuse to deny his reply. so for every discussion, u need to show some data (and saying mine is bullcrap, i dont even know what does bullcrap means anymore)? so according to your theory, please support on your reply with full details.

yes, i just compare to the difference of interest rate, that simple. but at least im not arrogant and rude like you, and to say you are full of shit, that's too kind word for u. kthxbai

Already have some replies telling you that, car loan even at 1%, it will be higher interest rate than FD's 3%.
But you keep on ignore it and die die saying FD's interest are higher than car loan's interest.

ok sure. unlike the supersoundtinkosong reply, yours much better.

sorry coz i don't come from econs background, so my theory of interest rate is that simple. will look into it

Just move on.

But as I mentioned, there was something missing in the calculation presented by TS in the previous page.

The missing part was a car loan requires the person to pay installment every month.

If he had not taken any loan, the equivalent amount of payment to the loan could be saved in the bank or other investments and that could generate interest.

The interest earn from saving or burnt from car installment must be taken into consideration.

LOL....please quote my words in which I did say i die die believe FD interest are higher than car loan? I just said i don't think car loan is more than 4%, in which u could reply that's not the case to compare in a more polite way.

i did not ignore coz i didn't read them. i was just replying my thoughts to TS and therefore, i didn't read the whole 3 pages just to reply TS and here you are replying in the wrong tone

inb4 stupid, didnt read before comment.

Car loan's interest are calculate annually. Like you take on Jan last year, the principle balance will be charged interest on Jan this year.
I settled my 5 year loan on 13th month, after back calculating, I've paid 2 years interest.

Only a person that has problem with his eyes won't see something or he is plain ignorant.
So, which category you are in?

U better stick to the topic or u rather to have personal attack on me? coz i don't have for all these nonsense. go find someone else.

to answer your question (final reply if you keep bullshitting), would you read a topic with 100 pages before you reply? this is only 3 pages but does that mean i have to read all of them, understand them and reply to one person which is TS? coz im pretty sure my reply not for you for my first post.

like what puchongite said, moving on.

Sorry, I will read all even it is 1000 pages.
Like in Malay : baca dan fahamkan.

This is not /k. Take your petty squabbles and move along. Either you contribute to the tread or take a free trip to Bora-Bora courtesy of the mods.

Just tell you that the banks are so successful in presenting the numbers and why so many are committing to 9 years loan.

If you want to know that is the difference, house loan is based on outstanding amount while car loan is fixed based on your loan amount.

Basically bank offer your FD or whatever as a form of loan from individual and these money is then loan to others in form of hire purchase / house loan / personal loan at higher rate. They make profit in the difference. So your loan interest will never be lower than what the banks pay you for whatever deposit product you have.

A 2.9% hire purchase loan will for 9 year period work out to be around 5.45% p.a. (when converted to housing loan type calculation). Housing loan calculation aka amortised loan is a better representation for calculation and comparison purpose.

There is no FD in the market that gives 5.45%. The best bet is to put into some AS? i.e., fixed unit price collective investment scheme to earn some 7% dividend and profit the arbitrage.

Xuzen

After doing some research, i still get some profit from FD over car loan but not too sure whether is worth it. Hope all sifus can enlighten me if thinks otherwise and not bashing me unlike someone #supersound.


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

from here (according to TS situation), i enter total loan of 35000, tenure of 5 years with 3% flat rate. Total payment is 40250 at EIR of 5.64% (i duno how they get this and how does it apply to get 40250)

so now, i used FD calculation site,
1. https://ringgitplus.com/en/fixed-deposit/
2. http://www.miniwebtool.com/fixed-deposit-c...est_frequency=0

On the 2nd site, again i enter 35000 with time period of 5 years at annual interest rate of 3.75% (simple interest - no compounding) and i get 41562.50 (same amount with ringgitplus site)

So FD maturity amount - total payment of car loan = 41562.50 - 40250.00 = 1312.5.

So from what I get, by taking car loan and invest the rest rm35k to FD, i earn rm1312.5 though not much but my point here is FD vs Car Loan interest.

And I would like to know how to get EIR p.a @ 5.64% and how does it apply because FD @ 3.75% beats the EIR @ 5.64%.

Again, I want to emphasize, this is what i get from my research, not to deny any opinions, purely for discussion and understanding.