You need to pay at least 10% down payment. Pay more if you can
You’ll need to pay at least 10% down payment for a new vehicle or 15% down payment for a second hand vehicle. The bigger your down payment, the lower the cost of your interest on the loan.
The shorter the loan duration, the cheaper it is for you
The shorter the loan duration, the less interest you’ll pay on the vehicle (it’s cheaper in the long run). If you can, try to get a loan for a maximum of 5 years.
Take into account future big purchases like buying a home
If you are also thinking about buying a home in the near future, a car loan will eat into the amount you can take on your housing loan. Plan wisely and decide what your priorities are!
Second biggest cause of bankruptcy in Malaysia
You’ve got to draw up a budget and stick to what you can afford so that you don’t run the risk of defaulting on your loan and becoming bankrupt!