I also did that for local brand Perodua 9 yrs on full loan. Sell after 5 yrs and still got 1-3k cash after loan settlement.

Btw..mine considered low mileage and full service at SC.

This post has been edited by gahpadu: Sep 25 2024, 12:20 PM

Yup, can but need to buy the right model & price.
must take the lowest loan interest also..

very good n very deep reply...

true also

When o first bought an used Triton some years ago, the agent told me to take a 7 year loan because lower monthly commitments.

I told him to can it and chose a 5 year installment instead. Monthly was 1371. Heavy especially if when cash flow is stuck. But I paid on time and eventually after fully settled, I sold the truck for 55k to a dealer and opted for cash.

Bank will provide lower interest if you go for longer loan period but that also means you pay more

But if they able to provide 0 interest rate like tesla then different story

Majority people who take 9 years loan plus zero downpayment they are not afford that car but desire to own it. We have 1 problem that we always blame public transport not good and rationalize buying a car putting ourself in financial difficulty situation. Look at KL and Selangor, there were MRT 2 lines, LRT 3 lines (3rd one onbaord soon), 2 KTM and 1 monorail, and yet majority still choose to "drive" even if station is less than 1km walking distance. Btw in Japan, Korea and western countries it is common people walk more than 1 km to nearest train station. Those resident areas less than 1km from train station is extremely expensive.

The last car loan I got was 10 years ago for my Kia Cerato, it was a 9 year loan. My salary at that time was more than RM15k but below RM20k. The reason I took a 9 year loan was to keep my monthly installments below RM1k per month. Didn't want to have too high monthly commitment with a shorter loan tenure coz I had a young family and other commitments too at that time.

Right now I don't have a car loan but if do buy a new car, I would prefer to keep the tenure as short as possible because I really dislike having loans and I am not so young anymore and may decide to retire early.

Some people give financial advice like there is only 1 way to do things. As long as you are aware of what you are doing, then just do what works best for you. We all go through different situations in life and need to tailor the solution to our needs, there is no one size fits all. Long tenure is not advisable but it is there if you need it.

I am working in finance for about 25 years by the way.

Another perspective on opting for a longer tenure is that it reduces your commitment at CCRIS, allowing you to allocate more funds for other important obligations, thus improving your loan margin.

Imagine applying for a mortgage loan. If the bank sees your total installments are high due to a shorter car loan tenure, they may reject your application.

In conclusion, if you aim to save money, choose shorter terms. Conversely, if you want to improve your loan margin for future financing standby, opt for longer terms.

Personally, I prefer longer terms because if I have the funds, I can still do early settlements.

If rich, you would know the interest of car loan is quite low, the extra cash you have in hand might as well invest it. If you know how and provided you have the cash already. If you don’t have the cash ready then means not rich la lol. Other than that, it’s emotional department already as you “don’t want to pay loan so long psychologically”

This post has been edited by cempedaklife: Sep 28 2024, 02:55 PM

if u need to loan 9 years just able to buy a car, u are certainly overestimated yourself....

No one talk about total loss situation?

If such accident, insurance reimburse market value which is below outstanding bank amount for longer loan periods.

No car, no collateral, bank will ask you settle remaining balance immediately.

I took 9 years loan for the Tesla I bought last year at flexi rates about 3.7% which is even lower than my home loan of about 4%. I have the cash to pay full but I would rather keep the cash to invest to stocks and whatnot.

If bank allow me to take 30 years loan for car I will be very happy to take.

Insured Agreed value.

Won't be too far from market.

But can try see if Insurance companies will accept till outstanding bank amount for long loan periods.

Anyone successful please share here at least got options by paying higher premium.

Nope, I disagree. Some people take 9 years loan, for a very good purpose. Like myself, I take because I want to roll the money as long as possible into investment.

Back in Aug '20, during Covid-19 days, I bought a conti car, RM300k++. I could have used to buy the car via outright cash, but decided to take a loan and invest the cash into shares instead.

So, instead of buying the car back with cash, I decided to dump the money into Tesla. A whole huge chunk of USD80k into one single share, although the purchase itself was via dollar cost averaging (multiple purchases over a period of time).

Totally exceeded my expectations on this. What a wild ride with all the ups and downs in between.

So yeah, my loan is a 9 year loan and I'm half way through, already served 4 years and 4 months (what an inauspicious number).
So, on a monthly basis, I basically sell some shares, that is equivalent to the monthly installment amount (approx RM3k).

The results, I have a balance of 56 months of the loan, which will be about RM168k to pay off (principal + interest).
BUT, the Tesla shares that I have now, is worth RM280k. If the share price maintains stagnant as it is today, with no ups and downs, at the end of my loan tenure, I would be left with RM112k.

More realistic figure, I'm guessing, it will land between RM200k~RM300k?

And to recap, if I were to buy cash with the RM300k++, which I could, at the end of 9 years, I would have a car that is worth perhaps RM60k and RM0 (since all the cash is paid upfront for the car purchase).

So back to the question - can I afford it?
Hell yeah, I can, but I'm better off taking a loan. :-)

Nope, 9 years loan is not a bad thing at all. It depends on how one approaches it. For me, it's God sent, that I can take a 9 years loan.
Refer to my previous post above.

Hence, for anything, I always stretch the loan as long as possible. It's my way of getting rich.

It is nothing wrong, Suit to your own finance status

Bank Negara said it will prohibit financial services providers (FSP) from using Rule 78 in personal financial products, but they may offer fixed rates or a floating rate or where interest is charged on the remaining principal balance after deducting payments made by the borrower.

reducing the tenure here in Malaysia to seven years would mean households’ indebtedness is limited to seven years instead of the 10-year maximum tenure.

https://www.thestar.com.my/business/busines...-rule-78-timely

This post has been edited by dogbert_chew: Jan 9 2025, 07:32 PM

All about cash flow breh