QUOTE(Holyboyz @ Jan 15 2018, 10:50 PM)
I'm looking to take a 20k loan on a 800 cc bike. Bank muamalat says that it is 5.1% over 4 years.
Would it make more sense for me to take a personal loan?
I'm looking for advise on what would be the best and financially sound way to do this
If the personal loan comes out the same or cheaper, it's a much better choice.
Why?
Because if you use a personal loan to buy your bike, the bike does not become a collateral against your loan. It's already yours. the bank does not hold it in lien (orang Melayu kata DIPAJAK). So no matter what happens to your personal loan, the bank cannot repossess your bike.
Secondly, because the bike does not become collateral, you are not forced to take comprehensive insurance throughout the tenure of the loan. Third party pun dah boleh.... dengan syarat, jangan dok gatal tunjuk hero di Genting lah. Kalau angan2 nak tunjuk hero, pancung sana pancung sini... sila ambil comprehensive insurance.
This one you must be honest with yourself, because kalau ambil 3rd party pastu terbabas tenyeh lutut di Bukit Tinggi... haa... padan muka sendiri lah.
Thirdly, once you get a personal loan, you're buying the bike in cash. This immediately puts you in a better position to bargain and haggle.
But if calculate and see that you'll end up paying a lot more using personal loan compared to a regular bank loan, then just stick to the regular bank loan lah.