7/5 years loan often warrants higher monthly installment

for cars with a "reliable" track record and "high resale value", is 9 year old too much ? since the monthly commitment for 9 and 7 years old vary greatly.

or is it a 9 year old a B40 trap?

Trap. U ended paying more.

The car maybe be reliable but higher target for thieves. When a car gets stolen, the owner still needs to pay the installments regardless.

If u plan to use the car for longer then 9 years is ok. But if u jenis easily influence or frequently change car, shorter loan between 5 to 6 years is better

Only pay until the insurance claim kick in

car is only buy to use ..no value...

The thing with this and any loan is that, it's a rich or poor thing

To the poor, they are kinda pushing something they may or may not feasibly able to afford.

To the rich, they are just leveraging low interest rates and keeping cash flow.

Middle class? Will never even consider beyond loan period over 5 or 7 years.

Which perspective you're asking from?
Or you're just trolling/wanting to spark discussion with your threads?

coming from other people advise, take 9 years loan and finish it in 5 years.

and i agree with Quazacolt statement above.

9 years loan is only valid with high resale value brand like Toyota, Honda and Perodua.

Other brand will trap you.

asking from all perspective.

if you are a rich/middle person, would you leverage the lower monthly commitments for cashflow?

buying cash don't seem to make sense especially if its a chunk from your savings.

This post has been edited by MegaCanonF: Sep 25 2024, 09:30 AM

Ok la conlanfirm troll/just attempting to spark discussion.

Enjoy bro.

tldr : 9 yrs is way too long.
imho, m40 & t20 would only take 5 yrs max.

same one la. bank target u to gain profit for few k
then divide by month. there kira rate.

in the end bank took same amount of profit no matter which plan u took

For a normal Chap, most ppl loan 9 years due to lack of fund. Bank loves these ppl, as they are constant income for banks.

Is totally fine to think that 9 years loan give u extra cash flow. But can you generate extra cash flow to cover the effective interest of 9 years compare to 3 or 5 years? Most people can't do it. In fact to generate enough to offset the extra interest itself involve higher risk than putting in FD, let alone benefit from the extra cash flow.

To me, paying down the loan in shortest time possible is the best.
If buying car like saga or bezza just cash saja. They are lumpsum but small enough to save within 1 to 2 years.

After the car is bought, the savings that goes to car can now directly goes to investment /savings. No need manage the debt

just pay a higher deposit if u dont want high monthly for a 5 or 7 year loan...the problem with people in malaysia...when they see 0 deposit all fof them kene racun kaw2...they dont even do the math and calculate what monthly they will be paying...end up monthly pay high like shit...then blame economy bad....but ownself dont know what is need or want

Personally I prefer a loan tenure that matches the warranty period of the car.

5 year warranty, 5 year loan. Don’t like the feeling of paying installments to the bank after car’s warranty has expired.

car loan and house loan is a good thing, it depends on how you use it

financial goal is #1 - how much you want to save a month/year etc
then, taking into how much you can spend on a car, and then resale value are secondary

take 9 years loan, if you want to change car at 3rd-4th year you might need to fork out to repay the loan.

i always take max 3-5 years loan only.

Usually within 3-6 months depending on the insurer. Cap X insurers usually up to 9 months to claim.

take 9 years loan and trade in after 5 years.
do that every time... more saving...

Can cover loan?