Hi,

Anyone know what is the interest rate for new (local) car?
Eg: Buy MyVi (49k) loan 44k and pay back in 9 years.
- what is the interest rate?
- which bank offering the best package at this moment?

By the way, i plan to buy the new car perodua..

3.88% for Citibank or may be Maybank

if 3.88% then 44k(9years X 3.88% = 15364.80 + 44k = 59364.80 after then divide 108 month (9years)=549.67 per month for 9 years, correct me if wrong ^ ^"

go to perodua website and they have a loan calculator. easier. you'll know instantly how much is your repayment per month. just key in the details there.

and fyi, i think most of the bank also offering 3.88% at the moment for perodua.

My friend, do you if you only put RM5k down payment, if anytime you want to sell your car, you will be forking quite a big sum of money?

Do you know once you start your car engine the first time, you already lose 20% of the value?

Don't just calculate whether you can afford to pay the mthly instalment. Calculate the depreciation and interest accumulated after 9 years. By the 9th year, you probably can buy 2 cars. trust me.

Hire purchase for cars are calculated flat. that means even after you paid half of the loan, they still count 3.38% of Rm44k. get it? The effective interest rate is 6.14%.

Please bear in mind that other cost you need to take into account, such as petrol, road tax, insurance, maintenance. Easily you need to allow RM500 mthly. So all in you have to prepare RM1k.

I'm not to discourage you to buy a car, but you need all these facts before deciding. Owning a car is fun and convenient. But ask ourself, can we postponed the purchase and save more money?

hei man, i just follow the amount he want n calculate the rate for him, not my suggestion le = =" but as u said, i will not encourage too for buy a small with loan 9 years ^^"

Sorry man, i quote wrongly. my appology.

is ok.......^^"

9 month is a killer. U will be tie up for the coming two year.

Of course, if u buy car just to avoid tax then diff mention. U need to buy house, marry and so on. Dun waste too much money in car.

python_king u got UGPM

Wait for the 9th year to buy two cars?greedy?And how if you already kong before the 9th year?Just don't think too further,you must look what you have now,not what you can have later or the 9th year.

3.88 citibank is for 7 years only and u need to swipe 500 to 1k on your citibank credit card if im not wrong...

am bank and eon bank 4.2% for 9 years...lower % for lesser years

Yea lor. 1 year of usage = RM5K gone.

4.3% for 9 yrs

4.1% for 7 yrs

dun take Ambank

why? care to explain?

Totally agreed with ya 100%. Last time i take stupid car loan for 7 years...regret like shit later.

Car loans is not like house loan. House loan take more is ok coz if u got money later, can make partial payment to reduce ur interest by very significant amount.
Car loan is flat...means if u settle early, you still have to pay the interest for the rest of the agreed loan tenure.

My advice to the young:

DO NOT TAKE A CAR LOAN > 3 YEARS. If you can't afford the monthly payment due to the short tenure, save up ur money so that u can put a bigger downpayment and make repayment in 3 years (4 max). You'll save a lot of money in the long run.

Imagine: if you loan 40K. 44K X 4.3%=1892. If u loan 9 years, ur interest would be RM17,028

If you say put in a bigger downpayment. Say RM15K, 29K * 4.1%=1189 * 3 years=Your interest is RM3,567 only.

That's saving of RM13K++, not to mention paying a car loan for 9 years is just so ridiculous...by 5 years time, you'll be cursing that u still have to pay the bank another 4 years when ur car value is less than half the ori value...

So work backwards on the max monthly repayment u can afford, and set a target to save the downpayment needed to achieve the target of 3 or 4 years loan.

You'll be so glad you did it a few years down the road.

---

Added on April 6, 2007, 9:20 amPeople who don't plan ahead financially usually ends up broke. Cars is a liability not an asset. If u invest in properties, the price might goes up 10 years later, with cars, 10 years later, you are a proud owner of a piece of rusted metal. Only thinking of what you want know without planning for the future is a recipe for disaster.

With less commitment towards a car, your money can be put elsewhere in other investment to make it grows. Money dump into car will just vanish into thin air.

Unless you're very rich and can pay cash without a loan(and it shouldn't decrease ur saving account to ZERO), don't neven think of buying a fancy car!!! Just get the cheapest u can afford.

This post has been edited by Matrix: Apr 6 2007, 09:24 AM

huh?!
make 3 years car loan?
i dont think youngster out there able to do it, even they buy a kancil..
(exception case for those lucky youngster that their family financially support them for down payment)
how many years we need to save 20k or 30k for a person who income +- 2k a month...
i think everyone also know abt the interest, but we have no better choice, our father is not Lee Kah-Sing or uncle Lim

By the way, I totally agree with your point!
Especially, CAR is a LIABILITY, NOT an ASSET.

This post has been edited by python_king: Apr 6 2007, 10:04 AM

If no money then hold on first lor. Save for 1 or 2 years to get the downpayment needed. My first car was only a 2nd hand car, and that's after a few years of working. If you just started work, then take bus/lrt for 2 or 3 years ler.

For people earning about 2K a month, it's not impossible to save RM400-RM500 if you have no other commitment. The keyword is frugal and discipline. In 3 years, you can muster up RM15K. Kancil is only RM30K. So get a Kancil ler. Loan 15K, 3 years easily kau-tim. Cannot meh? (Or just save for 2 years, loan 20K and pay back in 3 years).

There is always a choice, the question is whether you have control and willpower.

This post has been edited by Matrix: Apr 6 2007, 10:33 AM

how abt if i really need a car now ?

7 years cannot?

u mean loan for 7 year instead of 9-years loan?
i know the interest rate is lower, and less interest to pay. but i cant afford the installment every month. as u know, we have to reserve some $$ for petrol, toll and car maintenance as well

just get what you can afford...

7 years is extra 100+ a month

da problem is simple..if can get 5 years who wana get 9 years loan...

because you have no choice ! which is same as me hehe

This post has been edited by marky: Apr 6 2007, 06:39 PM

If you settle the whole loan amount early, the bank may waive some interest and save you some money. I've seen this happen before.

A car is a liability, but if you look outside the financial point of view, it can be an asset as well. A more expensive car's intangible benefits like safety, space, comfort, ease of maintenance, etc, are all factors that can affect a buyer's choice

This post has been edited by Dannyl: Apr 6 2007, 07:01 PM

loan not > 3 years, but pay monthly 700-1k+ what u gonna eat?
some people really need the car so cannot wait for long time saving just because want to pay high d/p and 3 years loan.

this i agree. 5 - 7 years is reasonable.

just need some planning.

3 years you pay like silly, and the only way to survive it is to have huge down-payment.

for young people who really really really really really really really really need a car - get a 2nd hand kancil or something or heck, get Proton Tiara.

used unit is like what - RM 2 - 5k range. no matter how many parts you repair it's still cheaper than buying a new car.

EDITED : oh btw the problem with young people these days is that not only they have no planning, their car they want like Myvi and stuff, some more must 1st hand.

i mean really la. it's not about looks. car people don't see what you drive around in wan. fresh-grads, your purpose of a transportation is to bring you to work and bring you home. that's it.

This post has been edited by goldfries: Apr 6 2007, 07:11 PM

Let me ask you are this question:

What drives you? You drive your car or your car drives you?

If you struggle just to maintain a car, then the car is driving you and you will be working for the bank.

Don't be a labour for your car and bank. You work for yourself.
If you have this mindset, you will never be rich.

Struggle now and be patience. Your chance will come. But you need to take necessary step now.

Take a freaking 9 years loan. Feed petrol to car and pay salary to bank every month. To me, it seems like you are working for them.

You will enjoy the car maybe 1 year. Then your car deterioates in apperarence and performance, and you begining to get bored. What's next? you still have to pay another freaking 8 years instalment.

Don't want to pay? Too bad, if you sell the car now, you will have to fork out huge sum of money, because you put in a little downpayment. You will be STUCK! Don't know all these years you work for what? Ask yourself again. Be true to yourself now, before it's too late.

Tumpany thread.

What if I like to take a loan of RM35k and will try to repay say in 5 or 7 yrs time,how is the interest rate like and roughly how much do I need to pay every month for both 5 and 7 yrs?

Scenario 1
Loan = Rm35k
Interest = 3%
Repayment = 5yrs (60 mths)

35,000x3%=1050 pa
35,000+(1050x5yrs) = 40,250 (principal+interest)

40,250/60mths= RM670.83 mthly.



Scenario 2
Loan = Rm35k
Interest = 3%
Repayment = 7yrs (84 mths)

35,000x3%=1050 pa
35,000+(1050x7yrs) = 42,350 (principal+interest)

42,350/84mths= RM504.16 mthly.

Thanks.
And which bank is this?

As I'm looking at loans from banks to buy a 2ndhand car.

actually, if you take a look at the current car loan interest rate and FD interest rate, it is wiser to take higher loan provided you CAN afford the monthly instalment AND the loan interest is lower than the FD interest (applicable to most non-national cars) AND make sure you put the money into the FD.

just for example, assuming the loan and FD interest rate is 3%, and for a loan on 1000 for 5 years, you pay 150 in loan interest but make 159 on FD interest.

if you have a house loan, putting the money into paying the house loan gives even more saving than putting in FD.

in addition, a lump sum in the bank and paying more instalment is easier to save up more money than paying higher downpayment and telling yourself to save money in order to save back the downpayment. cash in bank is "more saved" then cash on hand, the principle is something like forced saving.

but remember, make sure you can afford the downpayment.

Usually how much is downpayment for 2ndhand cars?
I always see "0" downpayment on papers.

OK. Would like to know anyone has almost the same plan as mine. Loan 70k for a car that is registered in 2001. How many years can I loan and what are the rates. I would like to know before going to the bank. Thanks.

can we believe the ads with '0 d/p, 100% loan, low interest, low installment'??

This post has been edited by Azuma-kun: Apr 9 2007, 10:55 PM

interest rates would be at least 4-5% for a car that age

just take ur downpayment to invest in market share first, 5k become 10k not a dreams ...10k can become 15k.............its can be true. Don't buy any car first. using this way to increase your cash flow first. Everyyear oso got new car launch, steady...

I like the sound of it. Chah Ching!

What a gambler I paying 1.1k/mthly for a 36k car for 3 years and charge me 5K interest when I finish paying. Licensed Ah long i tell you! Bloodsuckers!! Pinjam 30 pay 5k in 3yrs WTF.....16.7% total amount loaned......

And thats 1/4 of my salary.....And I still find it expensive to buy a car >40k, how come those yunk punks so rich can buy myvi and civic, 7-9yrs loan la. Wang takda tapi mau gaya

Actually, if you really really really need a car, 5k can buy those old toyotas or mazdas. Can't run fast but it stills brings you from point A to B hopefully without breaking down.

This post has been edited by gtghost: Apr 10 2007, 02:51 PM

So expensive?? I was expecting around 3.xx only

normally, 2nd hand car interest is higher than new car.

So how much downpayment needed to pay when buying a 2ndhand car?
Say a 2ndhand Waja or Gen2?

How to answer your question, when you don't mention the car manufactured year and price?

I purely agree don't make car installment >7 yrs......

I am suffering the car loan right now......... >.<""


DigitalTech,

What is your opinion for the best duration for loan ~ 70k??

U seem very expert !!

Oh sorry,Say a Gen2 2004 RM33k and a Wira 1.3 2001 RM19k?

If one has to stretch the loan up to 7 years, that means he or she just cannot afford to own the car. The rule of thumb should be less than 5 years.

Unfortunately, nowadays 7 years car loan is a norm.

Firstly, i would suggest you to buy a car if you budget to put at least 50% as downpayment. Secondly, if you take a loan, don't exceed 5 years repayment.

If both criteria are not met, and you insist to buy one, then you are spending future money with the expense of yourself now. Be patience. Cash is King. Car will diminish your wealth.

I drive a old proton waja, company car. I am very happy that I don't even have to pay a single cent for the car including all maintenance. I can afford to pay cash for a new honda civic, but i decided to keep cash and grow it. I use the cash to buy a property and fetch rental and at the same time enjoy capital apprciation. Best of both world.

When i have passive income which can support a better car, there's the time to buy a car. Passive income means you don't need to work for it to get the income, like property rental or business. You don't exchange time for money.

---

Added on April 12, 2007, 10:49 amPut at least 50% of downpayment. If you cannot afford, postponed your purchase. work harder and accumulate wealth.

Remember.....what drives you? Don't let your car drives you up the wall.

This post has been edited by DigitalTech: Apr 12 2007, 10:49 AM

50% down payment is good............ but, if i got 30k, i am sure put dump to housing loan instead of Car loan.

Housing loan % > Car Loan %..........

My monthly budget for installment is around 2.2k.
Housing loan took me 1.2k (actual need 0.9k). left 1k for car..........

If i loan 70k - 2.65% - 7yrs - monthly = rm 987.92
If i made it to 5 yrs, monthly = rm 1321.25......... still within budget if i pay the exact 0.9k for housing loan.
But, the housing loan installment will took me forever.........

Do you own a car already? Are you upgrading your current car now?

I would suggest you to open a Std Chd Mortgage One home loan account. You put all your money into this account and consolidate to offset interest. Long run you will see how much you save.

If you really need a car, try to get a affordable one with low maintenance and good fuel consumption.

All the rest of the money put into your home loan. Mortgage one calculates daily rest. The more money you put in, the more money you save.

ultimately you must try to payoff you home loan asap. Home loan interest will kill you softly. However property will have capital appreciation overtime. But everybody needs to have at least 1 home.

I tell you, if your home instalment is 1.2k, the principal component only RM200.00. The remaining 1k is interest. Meaning you are working hard for the bank. If you constantly remind yourself this way, you will work very hard to payoff whatever loan asap.

Consolidate your accounts is the way to go.

another thing is car loan are calculate flat. So you need to work out the effective interest. But usually still lower than home loan. The downside is car depreciate and home appreciate.

Yup, got "super protom" wira..... year 2002. Nut, the noise when driving is "better than" 20yrs HONDA...........

I just switch to Citybank - flexi home loan recently. and just dump 20+k last month......
Can take back what ever extra dumped $$ whenever i want.....

my house regular monthly installment is ~rm933, but i made it 1.2k.
i knew the principle issue, thanks for remind me...

I need a car so no choice.
Most probably will get a Wira 1.3 or Satria 1.3 for abt RM18k.
Any idea how's the interest rate for these cars and from which bank?

Can we save the interest if we pay up early instead of 5yrs or 7yrs? Let say I pay up by 4yrs from the 5yrs loan I took. So I save 1yrs interest rate. Or the bank is still charge me full interest even I pay up early?

No la. It is always the best to pay up earlier. You save 1 year interest

The earlier you settle, the more interest you pay. So better decide the repayment period before commiting to the hire purchase agreement. This is different from home loan.

What drives you?

Tainted,

check my pm, please.

NO. You're liable to pay up interest+principal even if u pay up earlier. They'll only give you a small discount like a few hundred bucks. Unlike Home Loan, the more u pay up, you're principal loan reduced, thus interest reduced and you can settle the rest of the principal without paying any interest after the initial tie-down period (3 to 5 years depending on ur contract).

That is why, car loan sucks. Don't go for long loan for cars. It's just not worth it. And if u already have a long loan, don't pay off early either coz ur money can be use to make money in the bank and elsewhere instead of giving it to the bank for a small discount.

Ex: If you still owe 30K(total loan principal + interest) to a bank for 5 years and you pay it off, you'll probably get a 1K discount tops.

However, if u put RM30K in the bank for 5 years, even at 4% interest, with accummulated interest, you can earn RM6.5K !!!

So just pay slowly and don't settle early if u owe bank long car loan.

This post has been edited by Matrix: Apr 13 2007, 05:09 PM

Ya loh, if u made your car loan at 7yrs, then just pay regularly to finish it.

If got extra money, pay for housing loan, most of it is daily interest(check 1st).
U pay today, the interest charge go down tomorrow.

Car loan and house loan different? I never took a car loan, only house.

Maybe I get the wrong information. My friend just took a 9yrs loan for his new car. He told me that you can save the interest by payoff earlier.

That was what I heard from my friend too.
Quite confused.

Usually when I'm tempting to upgrade to a brand new foreign made car, I scared the shit out of me by assuming I need to pay in full. Assuming we are able to save about $500 per month, it takes at least 7 - 10 years to amass a sum enough to buy MyVi with cash. The all important question, do we want to waste 1/3 or /14 of our life saving to buy depreciating assets? Funnily when we narrow our financial limit just on monthly payment stretching 5 - 9 years, the impact is not readily realized. Sorry if my words a bit harsh, but I myself took a 5 years car loan then. It seemed I have been working my entire life b4 paying it off. The day when anyone pays off his financial burden, priceless. There's nothing wrong owning a car but making the wrong & impulsive purchase could jeorpadize anyone's opportunity to accumulate wealth. Most folks discounted hidden costs factors e.g. inflation, fuel, maintenance, family and feel-good (an example, who wants to wear singlet & shorts driving a Beemer?). My rule of thumb, find a car (1st or 2nd hand) which will be paid off in MAX of 5 years installment & 1/5 of take-home pay. You go figure the installment and car made.

Let me ask a simple question. Do you agree that the time when we start taking car or housing loan, our attempt to save money dwindled or even diminished?

Wise man says.....only fool rush in.

(1) The info isn't totally wrong. RM500 discount also "save interest"....except that ur interest could be RM20K. What's RM500 against RM20K!!!!

(2) Ur friend kena con kaw kaw by the bank agent...LOL.

hey i have a question here, i have a budget around 30k for a car. Within this budget, I

suppose i can afford second hand waja 2002 which cost me 32k on the road. But then I

have an idea to get a loan for the new waja, cost rougly 60k. I will use my budget, 15k

for down payment and then the balance for instalment which i assume will cover 2 years

time. Since i'm unsure how long will I stay in malaysia (at least 2 years), i think this is

the best way because i can sell the car to the dealer will quite reasonable resale value

rather than getting 2002 waja then sale the car to the dealer while the price will dropped

further even if the conditions still worth, but it would be on 3rd hand and 7years old.

How my idea sounds?

Matrix, I just booked a new car and plan to loan for 7 years@RM46K after t-in my old car.

Some advised me to take up the max loan (65K++) and ask for 'cash back' & then put it into housing loan..Is it advisable to do so? I am thinking if there will be very risky by doing so,.. dig new hole to cover the old 1..

There is one financial planner told me, 'better' to have longer loan tenure, in order to have monthly investment into Unit trust (etc) which have average annual return@8-10%. What do you think?

Many thanks for your advice

I'm not sure how the 'cash back' programme ur offered works. What is the amount? etc? So i can't give more comments unless you have more details

Anyway, assuming it's 4% interest.
RM65K=RM2,600 x 7 = RM18,200 (Interest)
RM46K=RM1,840 x 7 = RM 12,880 (Interest)

Diff=18,200-12,800=RM 5,400

If your cashback is > the diff, it MIGHT be worth it. Dumping extra 5K into ur loan a/c will set off ur Principal by 5K. Additionally, ur interest over the housling loan duration is also shaved a bit (not much...5K doesn't make such a huge impact...u'll need to calculate in detail.)

btw, is ur cashback relative to the #of years of loan?

However, do rememer ur monthly repayment is higher.
Loan at 65K=Monthly payment=RM990
Loan at 46K=Monthly payment=RM700

But more importantly, you'll have the 19K extra to work around with right (if u loan RM65K instead of RM43K? This give you an extra angle to work at! With 19K u can pretty either put it into ur housing loan, earn from FD or unit trust fund.

So in ur case, it might be worth it.

But pleez don't take my word for it...check all ur details and get more advice from financial adviser!!!

I wonder what's the max. age to get car loan as I heard from many that above 55yrs of age is impossible already.

whats is the interest rate for a second hand car? em let say a 2002 perodua kelisa which cost about 22k

What abt 2ndhand cars like proton wira 00'?

sifoos my family is looking into getting a new car which costs around 70k+- and most prob the loan will be 7yrs but the prob nw is the interest rate kinda curious hw's the interest rate like? does it differ wif cars? we're planing a waja campro i manage to get eon bank's interest which is 3.8% but wat abt others?

I have a friend who buys a Vios who have to pay the installment for 9 years when I buy a Kelisa and only needs to service the installment for 5 years, not to forget he has to pay a higher monthly installment ((and we have roughly the same income)). His choice despite my advice.

In other words, why bother spend the first few hundreds extra so damn freaking early in life only to show off a little, and to live like a pauper from paycheck to paycheck for the rest of your days when you could be humble from the start, to save and to invest then, to be able to spend in the thousands later on in life.

Btw, not all forms of investment are secured and some may actually lose value (yes! including properties) and do not dare think of investing in the stock market unless you manage to find the time to read firsthand.

I talk with umw toyota seller & hyundai last nite at car promotion in shopping mall.
the interest rate for

vios = 2.3 - 2.5% (public bank)
hyundai accent = 2.4 - 2.6% (forget to ask which bank)
hyundai matrix = 2.3% (public bank)
latio = 2.3 - 2.4% (eon bank)

but they say proton car interest rate high than this..... truth ka?

Proton should be 3.88-4.3% which is ridiculous for a local car:x

truth la....
but is the interest rate with a lot **???

i have one question here
i made a car loan of 49k at 3.88 interest rate for 6 years
what if i were to settle the loan next year?

do i get any discount from the bank?
the interest i have to pay is for one year only rite?

What do u mean by "a lot ***" ??


What car do u take? New or used?

Anyone know what interest rates for 2nd car.... Hyundai Matrix for example?

i took gen2 new car

there is one 'Loan early settlement calculator' at autoworld website.

just key in your loan amount, total months of repayment, monthly payment and etc

can list out the link??

Want to ask 1 accounting question. I want to know, if i borrow car loan of RM50,000 and my interest is RM10,000 for 9 years.

Question:
If i pay full settlement within 1 year, is it possible for the 8 years interest will be waive?

No, you still have to pay interest but not much la because you got full settlement punya rebate. Full settlement is total payable amount tolak early settlement rebate.....


(96x97)/2
Total rebate = --------------- X 10,000
(108x109)/2

= RM 7910

This post has been edited by altimi: Jul 3 2008, 11:15 AM

how much tax u have to pay for your home yearly?

any idea what's the interest for new car purcahse now? was told will go up to 3+%. thanks.

It depends on what car you plan to buy. Interest rate for Proton will be higher compared to Honda or Toyota.

actually depends on the amount of loan u going to apply,the higher the lower interest,or else bank earn nothing from your interest.
Legal Ah long ma...cheers

This post has been edited by oscarsmh: Jul 4 2008, 05:00 AM

How bout the current latest loan interest for Proton? 4.XX%???

Interest rates are going to be raised before the end of the year, based on worldwide economic situations. If you need to take a loan, do it soon.

you're not wrong... also not correct

i believe this subject is very subjective... how much to pay up front, loan tenure and so forth. It boils down to each individual's needs.

for those who pay more deposit, you r actually paying depreciation upfront. ya...ya...ya... u save on interest but that doesn't change the fact that u r paying depreciation upfront. if someone is very calculative, buy the whole car in cold hard cash without any loan lo. those who put minimum deposit on their purchase could use the extra to invest elsewhere also right... can also compensate for the loss in interests paid to the bank on their hp loan...

its understood that when u buy car u buy something that depreciates in value. so calculative then take bus no. 11. pay more early or pay more later makes a difference differently to different people.. thats y it really depends on the individual's personal needs. those who pay more deposit may want to change car after 3-4 years or that they have higher disposable income, and of course they could be very good accountants too.

conclusion: if u r buying a car, do your own planning n seek advice if u r unsure. your needs and goals may not be the same as others. tailor your budget according to your financial standing

DigitalTech
I do admire what u said cos it shows very determined attitude...

This post has been edited by speed7791: Jul 11 2008, 02:05 PM

wat is da rate offer by toyota if i were to book vios J specs?

Alliance Bank 6.35% for 2nd car now

how about vios / city?

thanks... thats y now all 2nd hand cars stack like bukit

mine, just 3.75 got the loan from ambank june this year.... hehe....

h/p rate will go up again next week. target 0.5-1% this time.

Maybe can wait until year end only buy car...normally year end buy car got give discounts if you don't mind your car value will be lower few years later...like my friend that bought a car during year end promo, took half loan @ 7 years but was given discount almost as much as his 7 years interest...means the dealer paid the interest for him...

This post has been edited by S4PHTT: Jul 22 2008, 04:42 PM

Well, it all depends...

Like me, I don't change cars every 2-3 years. I keep my cars for at least 10 years. Take my VR4, it has been with me for 18 years already and in running condition.