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.

yes, pay for car loan every month for 5 years and only can get the FD maturity amount after 5 years. But the monthly payment can be paid using own income first and then after 5 years, getting back from FD maturity amount, earn some profit. Isn't that how it supposed to be? correct me if im wrong.

If divide 5 years interest rate for car loan and FD divided to monthly without calculating in the principal:

Car loan interest: 40250-35000=5250/60 months=RM87.50
FD interest: 41562.50-35000=6562.5/60months=RM109.375
i still dont get it lol...blur guy here. care to pm me and enlighten me a lil bit.

so my concept of calculation betul ma?

But what if say a person have rm50k cash, put fd at 4.2%/year. Fd will not be touch. Fd Interest remains the same every year.

He then take rm50k car loan at 3%/year for 5 year from another bank. He is going to pay the loan using deduction from monthly salary.

At the end of 5 years, he paid finish his loan. He withdraw fd with the interest, will he make a loss or make a profit?

Sorry. I am still blur

Because that is what I am planning to do in the future When I am working. If can save even a bit money, why not.

Take loan, and pay back the loan slowly and earn interest.

Isn't this like gen x's way of thinking with credit card. Put money into 1 month fd, use a credit card and at the end of 1 month, take out the fd and pay your credit card

So if one is rich enough, can one actually use a credit card to buy a car?