I have a "normal" fixed rate car loan with Affin, 2.24% for 9 years. Paying RM941/month.

> [((2.24% * 9 years) * RM84.5k) + RM84.5k] / 108 months = RM941/month

The principal component is RM84.5k, while the interest component is RM1.89k a year (or RM17.03k over 9 years).

Let's say I settle at the end of year 5.

Total principal paid: 5/9 * RM84.5k = RM46.94k
Total interest paid: RM1.89k * 5 years = RM9.45k

Balance principal remaining = RM84.5k - RM46.94k = RM37.56k
Balance interest remaining = RM1.89k * 4 years = RM7.56k

Some questions:

1) Are there any penalty for early settlement under a normal, conventional fixed-rate hire purchase?
2) Is my calculation above accurate? Is it accurate to say both the principal and interest components are divided equally over the 108 months?
3) Assuming my calculation is accurate, how much do I need to settle at the end of year 5, assuming I sell the car at the end of year 5? Is it RM37.56k (balance principal remaining), or RM37.56k + RM7.56k (balance principal + interest)....or something else? Any penalty? Any "discount" for the interest already paid in the previous years?

Thanks!

no need so complicated...just pick up phone, call bank Hire Purchase department, state your car registration number and give IC number, ask for loan settlement amount straightaway can get already.

No need to get a serious math headache. Just give them a call and walla, all will be answered promptly.

https://loanstreet.com.my/calculator/car-an...ment-calculator

For vehicle fixed loan rate, most of the installment paid in the beginning is used to pay the interest, you can refer to the hongleong bank link below for the early settlement calculation, it is better you call the bank for confirmation:

https://www.hlb.com.my/en/personal-banking/...auto-loans.html

just check in your account the balance now is the balance with no interest

Normally there is no penalty for early settlement. Just a rebate on interest depending on how far along you are with the remaining loan tenure.

Have to see your agreement.
Mine if settle less than 12 months will incur RM 600 penalty.

Yes some banks impose these.
However it is uncommon for regular folks to do early settlement less than 12 mths. Usually its at least 2-3 years onwards..

41.8k is no near to what ts calc
Is it RM37.56k (balance principal remaining), or RM37.56k + RM7.56k (balance principal + interest)

So what formula that website is using ?

As far as I know, hire purchase act does not allow for penalty. Your bank suka-suka charge then go complain BNM.

best solution, straight to the point