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 Hire purchase question

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TSDearJT
post May 17 2022, 12:20 AM, updated 2y ago

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I started a f&b business with my partner since july 2020 and my business have been up and down until oct 2021 the end of mco and my business have been doing well for now. Every month after deducting all cost we still can get around 8-10k each. So i planning to buy a car cost around 220k with 10% downpayment. Is it possible i am eligible to loan this amount? Last year May i just bought a house with my gf loan amount 766k already. I wanna ask here first because many sifu here can advise before i engage salesman and waste their time processing the loan for me.

matrix88
post May 17 2022, 12:42 AM

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How much is your net income every month? What is your commitment on the house?
TSDearJT
post May 17 2022, 12:52 AM

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QUOTE(matrix88 @ May 17 2022, 12:42 AM)
How much is your net income every month? What is your commitment on the house?
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Nett income consider 9k
Then every month commitment around 2.5k since house loan is shared equally with my gf
matrix88
post May 17 2022, 01:08 AM

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QUOTE(DearJT @ May 17 2022, 12:52 AM)
Nett income consider 9k
Then every month commitment around 2.5k since house loan is shared equally with my gf
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Sad to say you don’t qualify for a 220k car

Btw, how much spare cash you have per month to spend? And how old are you?
TSDearJT
post May 17 2022, 01:54 AM

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QUOTE(matrix88 @ May 17 2022, 01:08 AM)
Sad to say you don’t qualify for a 220k car

Btw, how much spare cash you have per month to spend? And how old are you?
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Spare cash around 5k since i rarely spend money on useless thing
Currently 27

But i counted if i loan 200k i only need to pay 2k+ tho
benzxzx
post May 17 2022, 03:14 PM

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it would be smarter to purchase the car under the company's name for tax evasion purpose but if your partner is not willing, and you arent the founder/controlling shareholder on paper, its best to abort the idea.

Technically speaking, you will be eligible to the loan amount, if you dont have other debts other than the mortgage, and its for an acquisition of new car under 9 years repayment schedule.

If its preowned continental car with considerably high years of usage, it would be subject to the banks' policy and some might request other security arrangement like a guarantor/pledging of fixed deposits to secure the HP loan, or some might just limit the margin of financing to 80% or less.

And you dont even need to be seeking for hire purchase yourself, just pass it to the sales agent of the car as they will be getting commission for sourcing out an HP loan for you.
mini orchard
post May 17 2022, 03:53 PM

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QUOTE(benzxzx @ May 17 2022, 03:14 PM)
it would be smarter to purchase the car under the company's name for tax evasion purpose but if your partner is not willing, and you arent the founder/controlling shareholder on paper, its best to abort the idea.

Technically speaking, you will be eligible to the loan amount, if you dont have other debts other than the mortgage, and its for an acquisition of new car under 9 years repayment schedule.

If its preowned continental car with considerably high years of usage, it would be subject to the banks' policy and some might request other security arrangement like a guarantor/pledging of fixed deposits to secure the HP loan, or some might just limit the margin of financing to 80% or less.

And you dont even need to be seeking for hire purchase yourself, just pass it to the sales agent of the car as they will be getting commission for sourcing out an HP loan for you.
*
Tax evasion is an offence / crime.

Tax reduction is permitted.
TSDearJT
post May 17 2022, 07:10 PM

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QUOTE(benzxzx @ May 17 2022, 03:14 PM)
it would be smarter to purchase the car under the company's name for tax evasion purpose but if your partner is not willing, and you arent the founder/controlling shareholder on paper, its best to abort the idea.

Technically speaking, you will be eligible to the loan amount, if you dont have other debts other than the mortgage, and its for an acquisition of new car under 9 years repayment schedule.

If its preowned continental car with considerably high years of usage, it would be subject to the banks' policy and some might request other security arrangement like a guarantor/pledging of fixed deposits to secure the HP loan, or some might just limit the margin of financing to 80% or less.

And you dont even need to be seeking for hire purchase yourself, just pass it to the sales agent of the car as they will be getting commission for sourcing out an HP loan for you.
*
My only loan is my current car which i used to trade in and my house only. For credit card today use tmr pay d

mini orchard
post May 17 2022, 07:23 PM

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QUOTE(DearJT @ May 17 2022, 07:10 PM)
My only loan is my current car which i used to trade in and my house only. For credit card today use tmr pay d
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Approach the bank your took the housing loan. They can give you a quick answer.
Zoo Howl
post May 18 2022, 02:16 PM

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QUOTE(DearJT @ May 17 2022, 12:20 AM)
I started a f&b business with my partner since july 2020 and my business have been up and down until oct 2021 the end of mco and my business have been doing well for now. Every month after deducting all cost we still can get around 8-10k each. So i planning to buy a car cost around 220k with 10% downpayment. Is it possible i am eligible to loan this amount? Last year May i just bought a house with my gf loan amount 766k already. I wanna ask here first because many sifu here can advise before i engage salesman and waste their time processing the loan for me.
*
1. Your nett income deduct your current bank loan / cards debts

2. The balance then divide by 3, this figure will show u the monthly instalment that the bank will approve to u

3. Then your new car, find out the instalment amount

If the instalment amount for new car is less than or almost same figure in the step 2, then u are eligible and safe to apply. But if your new car instalment amount is more than the figure in step 2, bank wont approve and u need to top up your downpayment, meaning loan lesser

This is how it works, bank only allow u to spend 1/3 of your salary on car loan. Dont care what other say u need annual salary of bla bla to buy certain level of car. Just live your life and buy your dream car. This is my advice on whether u are eligible for that amount of car loan
solstice818
post May 18 2022, 08:44 PM

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QUOTE(DearJT @ May 17 2022, 12:20 AM)
I started a f&b business with my partner since july 2020 and my business have been up and down until oct 2021 the end of mco and my business have been doing well for now. Every month after deducting all cost we still can get around 8-10k each. So i planning to buy a car cost around 220k with 10% downpayment. Is it possible i am eligible to loan this amount? Last year May i just bought a house with my gf loan amount 766k already. I wanna ask here first because many sifu here can advise before i engage salesman and waste their time processing the loan for me.
*
Basically, your business only started doing well/ consistently in profit since November 2021. Last May, you have already committed yourself in a housing loan. Would be wiser to wait up for a longer period before committing yourself in another loan.

Things can change really fast in the space of a few months.
TSDearJT
post May 18 2022, 11:41 PM

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QUOTE(Zoo Howl @ May 18 2022, 02:16 PM)
1. Your nett income deduct your current bank loan / cards debts

2. The balance then divide by 3, this figure will show u the monthly instalment that the bank will approve to u

3. Then your new car, find out the instalment amount

If the instalment amount for new car is less than or almost same figure in the step 2, then u are eligible and safe to apply. But if your new car instalment amount is more than the figure in step 2, bank wont approve and u need to top up your downpayment, meaning loan lesser

This is how it works, bank only allow u to spend 1/3 of your salary on car loan. Dont care what other say u need annual salary of bla bla to buy certain level of car. Just live your life and buy your dream car. This is my advice on whether u are eligible for that amount of car loan
*
Just done calculated and yes I can cover the instalment but just got called from banker this afternoon ask me if I got FD or Saving. Most of my saving gone to investment and left only few thousand in bank and she said she will try but if fail need to have saving at least 40k in bank lol...

QUOTE(solstice818 @ May 18 2022, 08:44 PM)
Basically, your business only started doing well/ consistently in profit since November 2021. Last May, you have already committed yourself in a housing loan. Would be wiser to wait up for a longer period before committing yourself in another loan.

Things can change really fast in the space of a few months.
*
Yup, understood what you meant but actually I have another business running which can cover up incase something gone wrong with my current business
Icehart
post May 19 2022, 12:05 AM

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Your monthly revenue x 15% = Your profit. If got a partner divide by 2.
Take the amount x 70%, less any commitment you have.
If the figure can cover car instalment should be ok.
tehoice
post May 19 2022, 10:33 AM

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QUOTE(benzxzx @ May 17 2022, 03:14 PM)
it would be smarter to purchase the car under the company's name for tax evasion purpose but if your partner is not willing, and you arent the founder/controlling shareholder on paper, its best to abort the idea.

Technically speaking, you will be eligible to the loan amount, if you dont have other debts other than the mortgage, and its for an acquisition of new car under 9 years repayment schedule.

If its preowned continental car with considerably high years of usage, it would be subject to the banks' policy and some might request other security arrangement like a guarantor/pledging of fixed deposits to secure the HP loan, or some might just limit the margin of financing to 80% or less.

And you dont even need to be seeking for hire purchase yourself, just pass it to the sales agent of the car as they will be getting commission for sourcing out an HP loan for you.
*
QUOTE(mini orchard @ May 17 2022, 03:53 PM)
Tax evasion is an offence / crime.

Tax reduction is permitted.
*
best term would be for "tax planning" purpose.

otherwise it will all be very inviting to LHDN.
Zoo Howl
post May 19 2022, 11:04 AM

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QUOTE(DearJT @ May 18 2022, 11:41 PM)
Just done calculated and yes I can cover the instalment but just got called from banker this afternoon ask me if I got FD or Saving. Most of my saving gone to investment and left only few thousand in bank and she said she will try but if fail need to have saving at least 40k in bank lol...
Yup, understood what you meant but actually I have another business running which can cover up incase something gone wrong with my current business
*
Ok the saving thingy is something new to me 😅

Maybe because u r buying 220k car

 

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