Car Loan, Full Loan or Not?
A lot of us, before we make a decision on purchasing a car, we only think about how much monthly repayment is within our budget or how much downpayment should I get ready. But, did anyone ask yourself that, should I go for Full Loan?
Did you know if you're purchasing a National Car, Proton and Perodua, the car loan interest rates are ranging from 3.0%-3.4% (sometimes you may get 2.9%+ except some model have promotional rates during offer periods). However for Non-National Car, other than Proton and Perodua, your interest rates starts from 2.4% to 2.9%.
If your finance provider given your car loan interest rates below 3.1%, do you know that is it a good loan rather than a bad one? Let me further explain below.
For example if you're applying a loan of RM100,000 with an interest rate of 3.1% per annum, your interests payout will be RM3,100 per year. However if you have RM100,000 today and you put in Fixed Deposit with a minimal 3.15% per annum, your Return of Investment will be RM3,150 per year. You're still earning RM50 in return at the end of the day
Example below is OCBC Bank Fixed Deposit Rates.
Other than Fixed Deposit there are also many forms of investment and you may checkout with your nearby banks and investment company like Public Mutual or Bursa Malaysia, Stock Market or etc whichever risks you may wanted to try. As for 0 risk, we compare with Fixed Deposit as it is closest to the Fixed Rates for Car Loan interest rates.
So if today you're going to purchase a car, Higher Loan or Lower Loan? Your Decision.
Please feel free to share with us your opinion by comment down below or email us direct at email@example.com