I have question in regards to the new type of hire purchase “Fixed (Simple Interest)” vs “Variable” rate.

https://www.cimb.com.my/en/personal/help-su.../car-loans.html

For mortgage loan, full flexi allows me to put money in and withdraw out and the interest calculate as per the interest let say 4% per annum day rest.

Anyone knows whether Hire Purchase variable rate also comes with such flexibility?

Let say i take 200k Hire Purchase Variable Rate loan 7 years period, and i park 200k in for 2 years (pay principal no interest), and 3rd year i withdraw 100k (and pay the interest based on remaining owe)… is it possible?

You are overthinking... car loans aint like housing loans.

They have switched to reducing balance calculation for interest instead of straight up fixed rate times number of years. Definitely not a flexible loan.

I currently have a reducing balance car loan from RHB, it does not work like a flexi housing loan. You can pay extra towards reducing the principal but need to transfer the funds and then inform them to use it to reduce the principal, so it is not automatic. There is also no option to withdraw paid amounts.

Contacted a few banks ... variable rate equivalent to fixed rate are generally lower at ~2.1x% as compared to fixed at 2.2x%. Mainly cause the borrower will absorb the risk of the interest to go higher if bank negara hike OPR, for fixed bank absorb the risk.

But looking at current economic situation of war and stuffs, unlikely OPR hike anymore - usually good econ will increase OPR, the recovery from middle east war likely will take 3 years to recover.

With variable rate, if pay more once a while, the effective rate will be even lower so is a good option.

Not to mention June onwards no more fixed rate.

Yea asked the bank is not flexi loan ...