Hi,

Planning to buy a secondhand car. Current commitment DSR based on the lowest income, 37%. After factor in the new car installment, DSR is 54%. What is the chance of approval?

And is there any way to inform the bank that starting this month our salary just got increased significantly to increase the chance of approval? I do have black and white from the company but no payslip yet cz my salary is backdated from a month earlier ( productivity in october will be paid in november and so on)

Looking for opinions before I send out the docs to the dealer.

Thanks

This post has been edited by Shah_15: Nov 7 2017, 06:42 AM

Depend on ur bank.

Previously i applied for loan for 5 years old Mazda CBU, 0 DSR -> 10% DSR with the car loan, get rejected. I applied for new car with double the Mazda price, push my DSR to 15%, accepted so fast by all the banks.

Considering that my salary was above average at that time + paid my cc (1k++ monthly usage) consistently without fail - bank's excuse of saying "it's a used car" is...quite dumb.

Car loan, especially used car, is very hit and miss.

0% meaning the used car loan is your first commitment? Maybe thats why the bank rejected since no record

already have house?

nope

do u have plans to buy house later?
Is this ur first car?

I do. But I am expecting another payrise in 2-3 years time. Thats when Im planning to buy.

Nope. this is my 3rd car. But 1st car has settled.

ohh okay

How much is the payment amount would be when u are required to pay after the loan approve?

Since u have other cars, i would like to suggest u to take ASBf instead of cars. After 5 years, u could have some amount of money and able to pay 10% of house deposit.

After u purchase the house, then only u buy a new car. This is because housing loan could increase ur DSR, however it is better it consist of housing loan instead of auto loan.

Im afraid if the DSR increase now because of car loan, u would unable to slot in housing loan. Yes, u can expect of pay rise, but it is not guaranteed..

Thanks for your suggestions. I would need the car as my family needed it. Oh ya, in my line of work, payrise is guaranteed based on the hours working. and it would be double of what i earn now. like wise, I earned half of my current earning bfore last payrise.

wow. double each time of payrise.

I think 54% is still reasonable rate for most bank.
But still dependent on your gross salary. Like house, your dsr percentage can go higher if your salary above certain amount ie; RM3,500.
Still, other variable factors still need to consider like how long you've been working, how big company that you currently working with, your CCRIS record etc.