High roller

What car was it

If you have good tax submission go for CASH BUYER

Shouldn't be worry if you submit tax every yrs.

9yrs good la.. where can u get 2% interest in the market.. u go for lowest interest then u make ur money work for u.. sohai ppl dump 50k into dp then 50k actually can help him generate more than 2% interest to cover the actual interest already.

Hahahhaa I think you have no clue about Flat Interest rate vs Effective Interest Rate..

cheap skate SUV bang... me kuli saja

Ya, that what I wanna told him too. Financial illiterate

Out of curiosity, does bank offer 6 years loan?

I always see car brands advertise 5/7/9 years in their pricelist, but not 6yrs and always wondered.

Thinking of changing car soon and based off rough calculation I'd prefer a 6 years loan tenure max.

lol, just go with 5 or 7, it won't make any big difference.

Yeah might just go with 5yrs if no option for 6yrs. Although, that'll leave me about RM130 poorer every month

Or have some money to repair the car in case it goes south.

You dont want to have to fork out for major repairs while still having to service the high loan.

This post has been edited by jaycee1: May 20 2020, 11:04 AM

I would take a 7-year loan, and then do a full settlement at the 5th year.

9. Stretch it! Car loan rates r cheapo. tat way, u'll have more disposable income.

example interest rate @ 2.7%
5 years = 2.7% x 5 = 13.5%

9 years = 2.7% x 24.3%

Yes, 9 years maybe your interest rates will be lower but my guess by a bit. Bank needs to manage risk as well apart from making money.

Most standard cars come with 5 years warranty. So if you are going for 9 years, the at the 6th year... you continue to pay loan but you have a new commitment which is the car maintenance in case anything fails.

max 5 , best 3 , >5 you need to reconsider your purchase

now got leasing with option to purchase,

if you have problem selling your car after 5 years and always change to newer model might want to consider that instead.

This post has been edited by KSMMA: May 20 2020, 11:14 AM

Brand new

Toyota, honda take 9 yesr

Conti...take 5 years max


Reason.....u don't want to still be owing back money if you sell your car....conti car depreciate like hell brand new


Second hand 1 to 3 year old , take max loan. Coz depreciation already highest on first to third....the rest ...can still swallow

This would be good. Been taking 3 years (or less) for the last few cars, unless there is specific reason (like the new merc with ridiculously attractive rate I took 4 yrs I think).

But how many in LYN will buy car with 3 yrs loan, they will stretch to 9 years and buy a car beyond their financial means.

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Yes, agree, ie if you are going to take a loan, then it is better to take maximum 9-year car loan instead of 6-year because money loses value with time and you have more money to spend now on essential needs, ie pay less in car installments.

Personally, I prefer to save money and buy an affordable car in cash, if I have a good salary. Eg most people buy their smartphones and TVs in cash.
....... Easy and cheap loans since the 1990s have caused prices of houses and cars in Malaysia to sky-rocket.

Note that for the first few years, most of your car installment monthly payments go to interest repayments, ie little go to principal/loan repayment. After making 3 years' of monthly repayments, you will still owe the bank about 90% of the principal/loan amount, not 67%. So, you should not redeem the car loan or sell the car in the first few years. .......

https://mypf.my/2018/05/17/car-loan-hire-purchase/
''''''' 2. The Rule of 78 Method – “Tails You Lose”

The borrower can settle the loan before the end of the loan tenure. A common situation is when the borrower buy a new car while owning an existing car with a loan outstanding.

Since the loan tenure has not expired, the interest portion of the unexpired period will need to be deducted from the total amount outstanding. This deduction is known as a rebate.

Common sense tells us the interest to be deducted is also based on flat basis i.e. simple unexpired period apportionment in line with the initial flat interest rate charge on the loan amount. Unfortunately, this is not the case. Instead, the bank adopted a basis called Rule of 78 also known as Sum of Digit method in the allocation of total interest charged. This method of interest apportionment effectively placed higher interest charges in the early period of the loan and progressively reduced towards the end of the loan tenure. '''''''
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This post has been edited by lurkingaround: May 20 2020, 10:57 PM

You know best if you can handle that 'extra' money if you choose longer tenure.

At this point if I need to, I'll go for 9 years too.

But I am happy being car debt free for (soon) a decade

I invest in ASNB, so I’ll always go for a 9-year loan when buying cars so I can dump whatever savings I have into ASM. 2% vs 5% (maybe 4% this year)... it’s a no-brainer.