Guys,

I am planning to pay down my car loan : Throw in circa 20k and increase monthly payment amount to settle earlier and save on interest.

but called a few banks (Maybank,CIMB) they say no such services...maybank said i can clear it (can get discount)...but if i just settl half and pay the rest no discount (why would i do that then)

Anyone can advise which bank can give such service.


Loan Balance To Go : 46,489
Monthly Payment : 801
Interest Rate : 3.68% (Maybank)
Period : 84 Months (7 years)
Paid : 26 Months
Second Hand Car

car loan even u settle full amount , u cant get any interest waive, its not like paying house loan

according to the maybank i can...I called and asked.

under hire purchase law...no refinancing. if want refinancing need find new owner name. interest can be saved if you settle early but not part settlement. interest saved on monthly rest not as charged . recommend you put xtra in unit trust or FD.

maybe u take a look on this article https://loanstreet.com.my/learning-centre/s...-car-loan-early

that article triggered this idea in the first place...

Can settle early and get discount one la boss. If you do extra payment monthly cannot saja. TS if you got property you may wish to refinance or withdraw from EPF account 2 for this purpose..

Car loan is not like housing loan.
Car loan is the same like personal loan. Interest rate already calculated for the entire duration of the tenure. Paying more monthly is a waste only.

The only thing is bank offering discount for early settlement. You must clear off all. And if you read the above article, it is beneficial if you settle within the first few years but become less and less beneficial towards the end of the tenure, you are saving not much.

based on my calculation if i want to settle has to be within this few months else, potential earnings from the settlement cost > potential earning of discount from bank

This post has been edited by qilaf: Feb 11 2019, 01:15 PM

I settled mine 3 and a half years in for a 9 year tenure loan.

Got savings of about RM 5000.