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?

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

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

FD loh, 4.5% p.a

wow, sounds like i can only put into ASM then

we all know who

Ok, i made my way to 2 banks for loan enquiries,

1 )CIMB hire purchase, 3%p.a,
for 30k principal, there will be RM4500 loan interest for 5 years,
and i will earn RM6000 in FD for 5 years @ 4%p/a.

Contra gain: 6000-4500=RM1500

2)Mach by HLB cruise control
I was told that i can deposit cash into the account to reduce the interest, up to 30%,
by putting the RM9000 into the account, i am only charged RM 2227 interest for 5 years,
which translated to 2.12%pa!

Meanwhile, the remaining RM21k in FD for 5 years @ 4%p/a. will make me RM4200.

Contra gain: 4200-2227=RM1973


any better choices, folks?

Attached thumbnail(s)

Oh yeah,
after doing some spreadsheet, i found that my FD interest reducing every months as my principle drops after repayments,
while the loan interest remains the same until the end of the tenure, although i paid most of the amount owed in the 5th year.

it ended up my FD interest over the 5 years are about 3.1k, while the loan interest itself is 4k++!

yeah, thank god you guys pointed that out, i almost applied for loan

only if your dealer allows it. Mostly not