For Q2, no answer since I didn't get an EV.
Q1 is because of company paying, + stretching to 9 years give more cash flow advantage.

If only ppl are literate enough to know that 2.8% pa for hire purchase is more than 5% effective rate

SPY, QQQ, VOO all close 1 eye, no need to check also get free money.

Nobody's misunderstanding anyone. Those who think taking a car loan with 2.8% interest rate is better compared to dumping existing FD savings with 4-5% interest rate to buy the car in cash because "car lian has lower interest rate" simple don't know anything about the actual cost of the car loan aka effective interest rate.

The only good about taking car loan vs buying with cash is you are not so immediately affected if there's an emergency that requires a lump sump of money if you don't have enough cash after buying the car in cash.

max is 7 years

.
Loan =/= Deposit

Loan is a liability. Deposit is an asset.

Many people have huge bank loans, eg car and house loans taken by young workers. Not many people have huge FD or money savings of RM100k or more in banks..

So, knowing the Effective Interest Rate for bank car loans is more important than for bank deposits, eg the deposits can dwindle when buying stuffs.

For bank deposits, it's more important for the depositors to not be scammed by dubious investment schemes that offer EFI that is too good to be true. Eg, .......

https://www.thestar.com.my/news/nation/2025...investment-scam - Company manager loses over RM1.7mil to investment scam - 17 June 2025
JOHOR BARU: A 67-year-old company manager has lost more than RM1.7mil to a bogus online investment promising daily returns of up to 10%.

Johor police chief Comm Datuk M. Kumar said the victim came across the scheme in April.

"His mobile phone number was added to a WhatsApp group named 'C-10 Freeman Saham 17'.

“The group promoted a stock investment scheme that claimed to offer daily returns of 5% to 10%, based on market performance.

"Enticed by the promise of high profits, the man began making fund transgers,” he said here on Tuesday (June 17).

Comm Kumar added that from April 16 to May 30, the victim made 12 bank transfers totalling over RM1.7mil to five bank accounts believed to be controlled by a syndicate. ...
.

.
Today, few young workers have RM100k to buy a new car in cash = they need to get a car loan from bank to buy a new car. For them to save up RM100k may take them >20 years.
....... Similarly for them buying their 1st home.

That's why the major banks in Malaysia earn profits of >RM4 billion yearly.

In pre-1980, most young workers could save money for 2-3 years to buy a new car in cash for about RM8k. Then they could save for another 5-6 years to buy a small home in cash for RM20k. Post-1992 and today, it's impossible. .......

https://www.facebook.com/aurizn/posts/blast...56354707711080/ - Aurizn
14 August 2019 ·
Blast from the Past! Car prices in Malaysia, 1975 😊

.

This post has been edited by lurkingaround: Jun 18 2025, 03:48 PM

Very hard to outsmart bank, even the FD promo rate also cannot exceed 4% nowadays, most only about 3.7-3.9%.

My emas loan is 2.32% flat rate, EIR is about 4.39%, FD promo rate is about 3.75% only. The only thing i can justify is taking loan will have higher cash savings for emergency/investment

ada business tak nak buat meh

if lelong and price difference, the person has to tanggung all also.

This post has been edited by yhtan: Jun 18 2025, 05:00 PM

u think the person still got money to pay the bank

FAMA car, bestest car

hutang then compound interest, then sue bankruptcy

can't believe so many sohai here dunno what is EIR no wonder so many bankrup lolol

Bank still cant get back money

.
Post below fyi, ie if you have the cash, it's often better to pay cash than to get a bank loan when buying a car or house = instead invest the cash in riskier instruments for >6% annual returns, eg can get "burned", eg FTX crypto exchange, Neta Auto, etc goes bankrupt, World Recession/Stock Market Crash, etc.

Similarly for those who took out their FD to make high risk investments for better ROI of >6% annually.

Personally, I go for safe "investments", eg FD, EPF and properties = no need an accountant or financial consultant who is not responsible even if he/she loses all your money.
....... Anyway, a prudent wife can usually be trusted as a "financial consultant".
.


.

dei bodoh, then you take loan no need repay back the loan is it?? the money to repay the loan drop from the sky??

if you take it out from FD then amount will go lower and lower la dungu and your FD interest is impossible to be higher than your car loan's interest,

OMG man, so many people here got finances like a 5 year old.

EDIT: Imma just put this here early. Because I know what retards like you punya line of thinking is..
You will say you dont touch the FD as you pay the car loan back using your salary. So it's "free" money..

Similarly, if one DOES NOT take loan and pay the car in cash. They have no monthly payment, so whatever excess can then be used to put in FD.
It is the same situation of using monthly salary. Just that one goes to pay off the car loan, the other goes to saving in FD.

and as we have clearly established earlier, it is quite impossible to get FD that is higher than a car loan's EIR. The only scenario i can think of is if you are a bank staff where you can get car loan at staff rate of around 1~1.5% (EIR around 2~3%).. ONLY THEN will it be possible to have FD that will be higher than car loan's EIR..

This post has been edited by Optizorb: Jun 18 2025, 04:49 PM

topkek ktards arguing until 13pages 9 years loan or not

Kalau suka ambik la
kalau tak suka keluar la

why boomers so like to lecture people one

that's why.. so many sei sohais here grossly overestimated their smartass-ness, thinking they are somehow smarter than banks wor...

Can you imagine how cringe it is they had a "light bulb" moment and then they think wahh im damn smart i can earn more than the bank loans me !!!!!
** then proceeds to pat their own backs **

Damn fucking cringe.


It's thanks to these sei sohais banks and bank shareholders able to make YOY profit growth

This post has been edited by Optizorb: Jun 18 2025, 04:46 PM

Why the reduction in loan every month increase? Means first year he pay less then final year he pay more? What kind of idiot is this taking this type of sohai loan?

Padan muka poorfeg

It's car market value drop faster the older it gets

the problem is this, if already have 100k and if car loan is 100k:

let's take for example 2.85% p.a. car hire purchase and 7 years period. Total paid in the end around 120k

so got 2 option, keep 100k in bank or paid it off all

First scenario: Pay the car off, then you pay 1428 per month (just like when paying the car monthly loans) and the savings account keep compound it with interest. Need to remember the 1428 already includes 20% in it, so the money actually compound twice: 20% hire purchase interest compounds to another interest rate

Second scenario: the 100k starts to compound for total 7 years in the account.

But need to remember the second scenario the 100k needs to compound for few years before it reaches the base of 120k that it chases on the first scenario. That's why people here keep pointing to the "effective rate".

But no use if you have no discipline to constantly put in the money yourself lor

This post has been edited by terradrive: Jun 18 2025, 05:15 PM