I’ll dump into car loan only if I can fully settle the car loan, thus increasing my cash flow.

Example you owe bank 40k car loan, you are paying Rm1,500 per month. Let’s say you have 40k cash in hand and you want to buy another house. If you dump your 40k cash into your home loan, it wouldn’t do anything to your cash flow. You are still paying both House and car per month.

However if you decide to fully settle your loan, you can release Rm1,500 worth of cash flow and with that you can use to to buy your second property.

Else if you do not have any plans, just pay down your housing loan.

Ermm bro no, hire loan is simple interest. If you convert it to reducing interest the rate will be higher than housing loan.

Anyway you can’t change that already, the interest rate is already fixed when you buy the car. The 2.7k rebate that you will get is far less than what you’ll get if you invested that money elsewhere and pay your car loan as usual.

Unless you wanna free up your cash flow, there’s no reason to pay up your car loan. The interest is already incurred, just go with it.