.
Fyi, .......
.
https://kclau.com/debts/car-loans-in-perspe...-real-interest/ - Car Loans in Perspective: Understanding the Real Interest
AUGUST 10, 2023

https://www.comparehero.my/articles/heres-h...-than-you-think - Why Car Loan Interest Charges Are Actually Pricier Than What It Seems? - 30 Oct 2019
.
Car loans by banks employ flat interest rate, which charge more interests than a fixed rate house loan which often has daily/monthly rest on the remaining loan principal as debtors are paying their monthly instalments.

Eg a 30-years house loan of 100k at 5% fixed interest rate. On Day 1, the bank charges RM5k in annual interest.
....... After 10 years of repayment to the bank, the loan principal may now be reduced to RM80k = the bank charges RM4k in annual interest for the 11th year.
....... After 20 years of repayment to the bank, the loan principal may now be reduced to RM40k = the bank charges RM2k in annual interest for the 21st year.

In comparison, a 9-year car loan of RM100k at "3%" flat interest rate. On Day 1, the bank charges 3% on the RM100k principal for the whole 9 years of repayment, ie 3% of RM100k X 9 years = RM27k.
....... If we had taken a 9-year house loan of RM100k at 3% fixed interest rate, we would have paid about RM20k in interest to the bank after 9 years of repayment due to the monthly/daily rest.

Effective interest rate is, as if the flat-rate car loan was a fixed-rate house loan.

Gemini AI Overview:

In Malaysian house loans, "monthly rest" refers to how the interest on your loan is calculated. It means the interest is calculated on the outstanding balance of your loan at the end of each month, and this is then added to your loan principal. As you make payments, the outstanding balance decreases, and subsequently, the interest charged decreases as well. This method is commonly used for home loans in Malaysia.
.

This post has been edited by lurkingaround: Jun 17 2025, 02:49 PM

always the rainy day arguement. mcm insurans la kan...how else pipu cari makan. cara dia macam beli kete mcm beli baju

I think I saw a similar post from FB, it's a Chery car right?

What Chery car can sell RM200k market value?

Effective rate is due to how the loan is structured, even though you reduce the outstanding, interest paid remain the same as opposed to mortgage where reduce outstanding = less interest charge on subsequent period

Banks do this as they can advertise with a smaller % number

It's like Telco, advertise xxxx Mbps padahal the b means bits

If convert to Bytes, the xxxx Mbps will need to divide by 8

This post has been edited by viktorherald: Jun 17 2025, 01:53 PM

i try to read and understand just now...

but the end, i still not understanding.. haha....

net net, i alway let my "Finance Controller" do the job...

what i do, all my money going to "FC" and my "FC" settle for me

last time, most of time, 50% down payment and balance 9 years

who bodo said to this guy buying car can make money? really sei sohai...wakakkakak

.
Please try again, ie after my edits.
.

compare with potong, EV more valuable even after depreciation

meaning mortgage loan interest is always tied to your outstanding. if you opt to advance payment, your interest charge will be lesser -> earlier settlement of loan

try do that on car loan, banker ask you go fly kite, or even charge you early settlement penalty on it

and the fix interest, meaning every year charge you same amount of interest
even on your last year, the interest amount does not get reduced, hence higher effective interest rate

This post has been edited by viktorherald: Jun 18 2025, 12:45 AM

Rip finances x understand car loan fully

ofcause rugi la if sell car,dont matter its ev or watever....1st time ka?

buying EV much better than underwater Airbnb property buy 900k lelong at 300k

Car loan interest rate lower than FD?

Your so-called 2.x% HP rate is called flat interest rate. If you calculate its effective interest rate, it is much higher than a FD rate of 2.x%.

No wonder Bank Negara wants to ban flat interest rate calculation because there are just too many ignorant people like you out there.

Ending flat-rate loan calculations can curb household debt, bankruptcy risks

Nothing wrong with taking years of loan for car even though you have cash, provided you put your cash to work and able to generate return that are higher than 2.8% interest (or whichever amount it is). Else, either
1) pay cash.
2) don't buy EV car as is depreciate much faster than ICE car.
3) don't buy car at all.

BTW, these days condo don't appreciate in prices anymore as there are too many around and more to come.

The only property that can appreciate value over time is landed property (preferable freehold property, also depends on location).

This post has been edited by lyekit: Jun 18 2025, 03:49 AM

LMFAO at these 2 retards thinking they can outsmart banks..

Diuniaseng if so simple like this banks will pokgai long ago dy la

You think you some genius is it. When in reality you just announced to the world you dont know shit about finances..

Before anything else. Just think for a moment with your two brain cells. Answer this truthfully: you really think you smarter than banks??

If i am bank wont give loan to ev lah

Later lelong also rugi besar woi

This is so true. Ayam also like this. The moment you don't have any car and house debt, you will be suprised with the amount of money you can save from just monthly salary.

Worst case for mine is overhaul engine or gearbox (if needed). Max will be around 10-15K for both. Still cheaper than getting new 100K car loan.

This post has been edited by saiga: Jun 18 2025, 06:14 AM

How get 5.15% tolong ajarkan

Any shortfalls you still need to pay back the bank. Only ppl with poor financial records bank tak mahu pinjam

On and off banks called to beg me to take personal loan credit card cash advance and whatnot without any collateral