Wait I go find back my excel file

Following the link for the car price, DP, interest rate, I make a comparison between 9 years vs 5 years loan. The difference of money will be put into FD. Click the picture to see it more clearly


After 9 years the difference is you will have less six thousand ringgit if you were to take 9 years loan. Spread out by 9 years that is RM671 per year. If you put it to other type of fund/investment that give higher rate then the difference will be smaller. Usually for shorter term the interest rate is higher than longer term.

The pros that I can think of for 5 years loan is you have extra 6k, if you were to trade in your car at 6th year, you will have the car value at that time as your DP + 5k cash whereas if 9 years loan after deduct all your saving you might need to top up 3k to 4k to clear your loan.

The pros for 9 years loan is like you mentioned, inflation. Also as the link mention if you want to buy property. Additionally during the first 5 years you will have more extra money in your saving for emergency or opportunity use. You will less likely want to change car because still serving the loan.