Car loan interest rates set to increase – report

proton

A recent report by The Edge Malaysia has indicated that loan interest rates for both national and non-national cars have increased by about 40 basis points. Bankers told the publication that the increase was an “order” by Bank Negara Malaysia (BNM), partly due to concerns regarding the rise of non-performing loans for cars. BNM has however denied any such directive.

“Financial institutions set their own lending rates determined by various factors including a financial institution’s assessment of a borrower credit standing, market funding rates and competitive considerations,” said the central bank in a statement.

Meanwhile, banking sources told The Star that the rise and fall of interest rates might impact loan growth in the short term, but growth is expected to return to normal in the medium- to long-term.

A call to the Sime Darby Auto Connexion dealership in PJ yesterday revealed that loan interest rates for its new Ford models have indeed gone up to around 2.8% from a rate of 2.4-2.5% in January. A salesperson, who declined to be named, said that eventually, the rate is anticipated to reach 3.5%.

2014 alza av rear

He added that the loan rates for used cars would also increase in corresponding fashion, saying that the rates for used car loans was roughly 1.5% higher than new car loans.

A Honda dealership we contacted also said that loan interest rates had increased, quoting a present rate at about 2.7%, up from about 2.4% in December 2013.

According to recond car dealer CA AutoWorld, rates have increased by 0.3-0.5% beginning yesterday. It declined to say which banks have upped their rates. The rates would depend on the size of the loans – details of which have not been divulged.

Another dealer, KengHim Automobile said that loan interest rates for second-hand vehicles had not yet gone up, remaining in the region of 3.3-4.5%, depending on vehicle make and age, but expected it to be increased very soon. The company also said that rates would depend on the loan amount.

used

However, this present hike shouldn’t impact the average car buyer too much, if it is indeed a 40-basis point jump. For example, if a RM50k loan over a period of seven years at a rate of 2.3% incurs a RM691 monthly payment, the same at a rate of 2.7% is RM708. That’s RM17 more per month.

Last year, BNM squashed rumours of a memo directed at banks to reduce the maximum repayment period for new car loans to seven years, and raise the minimum downpayment value from 10% to 20%.

According to the central bank’s latest statistics, impaired car loans stood at RM2.33 billion in February – an 8.3% jump over the month before and 21% more than the same period last year. At 83%, Malaysia’s household debt-to-GDP ratio is the highest in Asia amongst developing countries.

While it remains to be seen how much of an impact this move will have in terms of sales in the near-term, car companies can of course circumvent the interest rate increase through subsidisation via sales promotions/campaigns which offer a low interest rate, or will we see a capping of these activities too?

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Bank Negara Malaysia (BNM) yesterday clarified that it did not give any official or authoritative instruction to the banks to increase interest rate on hire purchase financing for cars.

    Like or Dislike: Thumb up 55 Thumb down 6
    • takNakP1 on Apr 02, 2014 at 6:04 pm

      if is not from BNM, then it could be a rumours from the automotive industry to create a false alarm and urgency to buy a new car before interest rate increase. This could help in sales.

      Well-loved. Like or Dislike: Thumb up 59 Thumb down 2
      • Tomcat on Apr 02, 2014 at 10:21 pm

        You did read the whole article, right…?

        Like or Dislike: Thumb up 16 Thumb down 1
      • Same lor Orii on Apr 03, 2014 at 11:52 am

        The purpose is simple and easy: force everyone buy back Proton.

        Proton making loss = government to subsidy
        government to subsidy = crony taking less
        crony taking less = HELL NO THIS IS MADNESS!!

        For a few to stay filthy rich, most have to die poor.

        Like or Dislike: Thumb up 31 Thumb down 23
        • bengong on Apr 04, 2014 at 12:11 am

          errr….rates for local cars also went up. this hurts everyone. fyi, rates for local car is even higher than non-local.

          Like or Dislike: Thumb up 15 Thumb down 0
        • Rates for national cars are generally higher than non-national cars, usually by 40-50bps. So yah, u can take ur conspiracy theory and shove it up ur ass.

          Like or Dislike: Thumb up 3 Thumb down 0
        • Beraiyen on Jul 17, 2014 at 6:09 pm

          For some to live forever, many must die…

          “Out of time”

          Like or Dislike: Thumb up 0 Thumb down 0
      • Najib, where is the 30% you PROMISED? on Apr 03, 2014 at 3:47 pm

        Where is Najib’s promise of 30% reduction in car prices over a period of 5 years? Najib promised before the election that if we voted for him and BN, he would ensure that he would match PKR’s offer to reduce car prices.

        Najib himself quoted saying that the BN government would reduce car prices by up to 30% gradually over 5 years and we should trust BN. Infact he said BN always keeps to their word. 9 months have passed and nothing has been done.

        Infact companies like Toyota and VW have increased their prices. Does not matter now whether a car is CKD or CBU or whether it is EV or EEV. What matters now is where is Najib’s promise?

        Now Bank’s which are mainly government owned or controlled are whacking the people with higher interest rates.

        Double blow. High car prices plus high interest rates.

        Like or Dislike: Thumb up 33 Thumb down 3
        • First thing’s first. I’m not a BN supporter.

          Now, technically he still has a few years to reduce car prices. And as you’ve mentioned it is reduce car prices by up to 30%. This means that the max car price reduction would be 30% the minimum could still be 0% price reduction or maybe 1%.

          Before anyone bash me for being pro government or BN agent or whatever, I would love to see car prices drop. I hope it happens soon as I’m planning to get a new car this year or next year.

          I’m just pointing out that he has not failed to live up to that particular promise yet.

          Like or Dislike: Thumb up 16 Thumb down 21
        • since when the banks are mainly owned by the government? which bank are you referring to?

          Like or Dislike: Thumb up 2 Thumb down 0
    • Vader on Apr 02, 2014 at 6:43 pm

      30% car price drop still not hear anything, the tax already increase? Malaysia boleh! Janji ditepati!!!

      Well-loved. Like or Dislike: Thumb up 141 Thumb down 7
  • Ensco 105 on Apr 02, 2014 at 5:30 pm

    This has been going on for a while (the high interest rate that is)

    Surprised it took this long to get on paultan

    Anyway, higher rates to promote prudent spending?

    Or just to squeeze us even more..

    Like or Dislike: Thumb up 29 Thumb down 1
    • Acrix on Apr 03, 2014 at 9:57 am

      Yup the interest rates increased in the middle of march very quietly by an average of 0.3-0.4%
      Actually should the movement where 20% downpayment and maximum 7 years loan with higher interest rates really come about i think its to curb spending and make sure we only buy cars which we can afford.

      Like or Dislike: Thumb up 4 Thumb down 0
  • Meaty on Apr 02, 2014 at 5:34 pm

    MITI should reduce the excise duty 75% too.

    When factored in the car loan interest times by the number of loan years, you ends up paying twice in total car price.

    So basically it is a double-tax crap being punished unnecessarily for car buyers in already overpriced junk quality car market.

    Like or Dislike: Thumb up 44 Thumb down 0
  • tessiemah on Apr 02, 2014 at 5:45 pm

    So far, neither BNM, banks nor car dealers (new or used) we’ve spoken to have denied the car loan interest rate hikes??

    you sure?

    http://www.theedgemalaysia.com/business-news/283020-bank-negara-denies-qdirectiveq-to-hike-rates-for-car-financing.html

    Like or Dislike: Thumb up 1 Thumb down 3
  • mh370survivor on Apr 02, 2014 at 5:46 pm

    what?!! 3.5%? is this your way to reduce the car prices on the road? janji dicapati….GOOD JOB GOMEN!

    Like or Dislike: Thumb up 37 Thumb down 5
  • Nabill on Apr 02, 2014 at 5:48 pm

    Hidden due to lowcomment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 34 Thumb down 264
    • joanna on Apr 02, 2014 at 6:56 pm

      If u want to make more people pay their monthly installments, why not just cutting current illogical car tax structures to make cars more affordable rather than increasing loan interest?
      Cars nowadays are significant to many people due to poor public transportation. Only small percentage of them buy cars just to show off. Therefore the govt should seriously look into this rather ask local banks to increase loan interest. What a bizzare move.

      Like or Dislike: Thumb up 54 Thumb down 5
      • oia chin wei on Apr 02, 2014 at 11:25 pm

        Every malaysian are struggling with super high living cost and poor pay range meantime weak currecy.
        Gov efforts and aggreasiveness is important for country future outlook.

        Like or Dislike: Thumb up 18 Thumb down 1
    • Vader on Apr 03, 2014 at 7:35 am

      What kind of theory is it?
      As you mention many ppl cant afford to buy car already, then how does the car loan interest increase will help in this condition? You are funny!

      Like or Dislike: Thumb up 24 Thumb down 1
  • thebugbud on Apr 02, 2014 at 5:57 pm

    For once Malaysia is ahead of the pack with household debt ratio that match develop country. At least, BN can claim we are equal as developed nation (at least on debt level).

    We should appraise our gov for taking the country closer to wawasan 2020.

    Like or Dislike: Thumb up 16 Thumb down 6
  • Nicholas on Apr 02, 2014 at 6:01 pm

    So… If the household debt-to-GDP is 83%… Why want to burden people more just because the bank is “earning not enough”? They aim to increase the debt level to 90%?

    Like or Dislike: Thumb up 15 Thumb down 3
  • FoolMeOnce on Apr 02, 2014 at 6:03 pm

    Hahaha very funny. I presume GST is also being introduce this month. I won’t fall for it this time.

    Like or Dislike: Thumb up 6 Thumb down 1
  • “At 83%, Malaysia’s household debt-to-GDP ratio is the highest in Asia amongst developing countries.” It’s ok, Najib say it is a good thing. Syukur!

    Like or Dislike: Thumb up 12 Thumb down 2
  • even without the tax increase the price of cars here still high…sigh

    Like or Dislike: Thumb up 16 Thumb down 1
  • cendol (Member) on Apr 02, 2014 at 6:40 pm

    Soon BLR will be raised,
    A lot of people will go underwater with mounting debt,fueled by years of lower interest.
    Another economic crisis in the making.

    Like or Dislike: Thumb up 11 Thumb down 0
  • joanna on Apr 02, 2014 at 6:50 pm

    Car prices are already super high with the current tax structures, now BNM ‘cooperates’ with the local banks to increase loan’s interest. Thanks government. We Malaysians are super rich. We can pay anything.
    Don’t worry, you’ll still win for the next 100 years because there are millions of idiots still strongly support your policies of putting money first people later.

    Like or Dislike: Thumb up 40 Thumb down 5
  • Good, less people buy car.

    Like or Dislike: Thumb up 7 Thumb down 16
    • No meaning on Apr 02, 2014 at 10:07 pm

      The rich will still buy like nobody business and the mid income will get burnt but the low income will suffer most! You called this smart and measured moves? Rich fler buy in cash, mid income pay by installment with more burden to the shoulder, low income will try to make ends meet and with higher rate mean more will end up more heated butts.

      Like or Dislike: Thumb up 24 Thumb down 2
  • 4G63T DSM on Apr 02, 2014 at 7:19 pm

    The only reason why banks are making “a loss” on a default is that their loan and interest amount inflate the total loan repayments to a level that exceed the depreciation of the car.

    If you take a 90% 9 year loan and default before 5 years, the value of the car is guaranteed less than the loan outstanding.

    If you ask me, banks where got “lose” any money?? In actuality, they already made money. At WORST, make less only.

    Another excuse just to squeeze consumers more. Just like how they take advantage of the more popular cheaper local cars by charging higher interest.

    Next will come insurance companies again.

    Like or Dislike: Thumb up 41 Thumb down 0
    • You are right on some extent..but not all.. bank indeed will record a ‘loss’ or ‘expense’ if the loan turn impaired. This will then reduce the profit in the financial account which may affect the share prices. 10 cents drop would be a huge loss then…u got it?

      Like or Dislike: Thumb up 1 Thumb down 11
  • 4G63T DSM on Apr 02, 2014 at 7:23 pm

    If they really want to cap spending and limit loans default, they should cap the max years loan to 5 years.

    But we all know that will be breaking their own rice bowl and that of the other auto related industry as well.

    Like or Dislike: Thumb up 12 Thumb down 1
  • matrxe on Apr 02, 2014 at 7:23 pm

    Large portion of the car price comes from high tax rate. When a person took out bank loan the amount also covers the tax amount. So basically we are paying interest on the tax amount we own. So yeah bank always wins.

    2. Only recently insurance rate went up. If Bank Negara cannot control irresponsible profiteering by means of interest rate increase, we might as well just abolish it. This is scandalous, major financial institutions are scheming to set up the market to gain more profit. BNM people are just sitting on their ass, tak buat kerja.
    3. Just merely RM17 more permonth per car! yeap not much.. but you’re not looking at the issue correctly..how many cars are on the road? Big money my fellow citizens. The money will go to only to few banks. Imagine that all drivers are forced to pay RM17 a month to a special fund to built FREE HIGHWAYs..i think many people will reap the benefit. so no. its not okay.
    4. When we just say tak apa sikit saja. We are enabling these big sharks to do as they please..its only gonna get worse. mark my word

    Like or Dislike: Thumb up 48 Thumb down 2
  • fast5 on Apr 02, 2014 at 7:24 pm

    Is never a good news on automobiles in malaysia…. thx BN

    Like or Dislike: Thumb up 45 Thumb down 2
  • matrxe on Apr 02, 2014 at 7:31 pm

    “According to the central bank’s latest statistics, impaired car loans stood at RM2.33 billion in February – an 8.3% jump over the month before and 21% more than the same period last year. At 83%, Malaysia’s household debt-to-GDP ratio is the highest in Asia amongst developing countries.”

    That that long way of saying,

    “Because we stupidly approve loans to people who are unable to pay..we hereby are forced to to increase the interest rate.”

    hmm.. love the system.

    Like or Dislike: Thumb up 31 Thumb down 0
  • Hutang Manyak Lo on Apr 02, 2014 at 7:56 pm

    If not BNM, then who give the order and why many car company salesman increase the rate last week?

    Like or Dislike: Thumb up 6 Thumb down 1
  • Albert Lee on Apr 02, 2014 at 8:05 pm

    Malaysia Boleh Land :
    1)High Real Estate prices
    2)High Vehicle Taxes
    3)High Vehicle Prices
    4)High Hire Purchase Interest Rates
    5)High Food Prices
    6)What else? Oh,…now escalating Funeral and burial expenses.

    Like or Dislike: Thumb up 37 Thumb down 5
  • seman on Apr 02, 2014 at 8:12 pm

    nowadays people buy car for need not for lust even some of them fulfill their want rather than their need…public transport should be efficient first, house price need to be stabilize then only the gov can talk loud about high household debt made by rakyat from car and house loan…we had been tortured so long for paying high tax & interest when buying car even the basic model

    Like or Dislike: Thumb up 9 Thumb down 0
  • Local Traders on Apr 02, 2014 at 8:22 pm

    This is wrong. The reason why the increase the tax is to allow banks to make money to prepare for GST.
    If they are genuine want to curb buyers buying a car more than what they can afford, they shd increase the d/p. There so many f**king cars here because of the stupid zero d/p and 10% d/p. Make it at least 20-25%.
    Fresh grade/student can wait until they really can afford to buy one. I believe most of our parents survived through the same scenario

    Like or Dislike: Thumb up 22 Thumb down 2
  • heybadigol on Apr 02, 2014 at 8:29 pm

    While it’s true that hire purchase defaults are high, increasing interest/profit rate isn’t the only way of controlling this. Banks can always practice more responsible lending by making it tougher to approve loans. Eg increase minimum nett monthly income requirment to a higher figure, so that people are forced to take financing for cars they can actually afford. Increasing profit rate just seems like Banks making more profit. At the end of the day, if you as a consumer thinks that it’s too burdensome, then don’t bother taking loans. Just stick with whatever car you already have (if you have one). But please don’t resort to getting loans from ah long. Important thing is to buy what you can afford, not what you want, unless you earn millions a year.

    Like or Dislike: Thumb up 7 Thumb down 0
  • a) To encourage prudent purchase of cars, revise the hire purchase loan to max 5 year loan tenure
    b) If a person has to resort to a 9 year loan, means he can hardly afford to purchase the car in the 1st place**
    **do not tell me the person is trying to minimise cash flow so he/she can have for cash for a better lifestyle/take care of wife and children. this still means that he can hardly afford the cars hence the 9 year loan
    c) The only reason 9 year loan is allowed is because to address the issue of high car prices in Malaysia
    d)solution is , reduce car prices to a reasonable level, reduce car loan tenure to 5 years. duties on cars should be managed at a reasonable %. Govt has to look at other areas to replace the lost income (due to reduce import taxes) and not forever at the citizens expense. why other countries can manage their finances without resorting to increasing taxes on imported cars.

    Like or Dislike: Thumb up 33 Thumb down 1
    • Babygrand on Apr 03, 2014 at 8:06 am

      Your solution is great and everybody know it is a common sense but our Gov only know to barking as below:

      1)Satu Malaysia
      2)Rakyat Diutamakan
      3)High Income country
      4)High level world class Education level
      5)Free of corruption
      6)Safer country
      7)Radioactive free
      8)Fuel cheap
      9)Living cost cheap
      10)Country debt is controllable
      11)Best world class management
      12)RM1 whole chicken
      13)many many more

      Omg very sick and wjhat else please list it down and my brain need to install VSC system not to skidded out of the lane !!!!!!!

      Like or Dislike: Thumb up 29 Thumb down 2
  • Aero (Member) on Apr 02, 2014 at 9:04 pm

    My fellow Malaysians, please don’t buy a new car if you know you can’t afford one. Please stick with your current car instead. If you can afford a new one, try not to apply for a 9 year loan, consider a 7 year loan instead.

    There is nothing to be ashamed of driving an old car. As a matter of fact, many people tend to respect others who responsibly & lovingly care for their cars over the years and decades.

    A car is a loss making investment. You will not get most of your money back after 10 years. Depending on the brand of car, you may lose less, but the fact is a car will forever be a loss maker.

    Which is why smart people ALWAYS consider investing their hard earned money in property, education and healthcare. Unlike a car, a house will appreciate in value over the years. Let’s say you buy a RM250,000 house today, in the next 10 years, it may be worth RM1 million. Plus, we all know that education and health is invaluable, you will NEVER lose if you invest in these fields.

    So once more, I would like to say, please consider your needs and wants wisely. We all need a car, but we all want a nice car.

    Of course, who am I say what you should do with your hard earned money ? This is merely a public service announcement. It’s up to you whether you want to listen to it, or not.

    Well-loved. Like or Dislike: Thumb up 93 Thumb down 5
    • Dino years (Member) on Apr 02, 2014 at 9:42 pm

      Preparing to get a lot of thumbs down, but if you can really afford the car that you are getting, the small interest rate hike won’t burn you. If it does, you are just buying a car that’s over your means. As Aero says, there is no shame in driving an old, or even a cheap car. Its just a means to an end for most of us.

      my friend in singapore says that most of them buy cars 50-100% in cash. that’s right, with cash, even with their ridiculous car pricing. because their mentality: if you can afford to buy it today, buy it with cash. if you take a long/big loan to buy it: you cannot afford it but “die-die must drive car to show off”.

      Like or Dislike: Thumb up 28 Thumb down 1
    • holofanboi on Apr 03, 2014 at 6:07 pm

      Do not read this if you are easily offended.

      Aero’s advice is a sound, rational lifestyle tip for one to use as an excuse to stay as the lowest common denominator of society. The sort who is incessantly complaining about the government, unfairness, taxes etc etc and finds comfort in doing so while his questionably fulfilling life is wafted by the economic flow.

      It is the sort of statement that isn’t wrong, but has the tendency of keeping one in a comfort zone when it comes to decisions in life.

      Understand the economy. Learn how fluctuations of the market works and then you will finally see that the common forms of investments are pretty much licensed public scam (Fixed Deposit as an example)

      Think for yourself and fight on. Strive for the best you can get every step of the way, every year of your life.

      O__o;

      Oh dear lawd I sound so serious. Ignore this internet poster and please continue with your good work in contributing to the rich-poor gap!

      Like or Dislike: Thumb up 1 Thumb down 0
  • 4G63T DSM on Apr 02, 2014 at 9:12 pm

    best thing to do is just get an old car and pay cash. (or stick to your existing car)

    Any car over 10 years has lost at least 75% of its value. After all almost 1/2 the price of a car goes to government taxes. Why do you want to finance the government and AP holders? You got too much money issit?

    Even if you buy a cash for 20K 10 year 2nd car and drive it to the ground every 5 years (ie. 0 residual value), you are still better off than buying the (same) car new.

    Fair example would be say A Proton Persona at 50K (which would likely cost less than 20K in 10 years. You would have paid at least 5K in downpayment. Interest charges for 45K x 9 year [email protected]% would be 14,175.

    So what you have spent for 10 years is 5K + 45K + 14K = 64K. Trade in for a 10 year old Persona is likely well under 20K. You would have lost at least 44K

    So if you paid 20K for a 10 year old Persona, you would have basically nearly gotten it for “free” as interest cost is already 14k.

    Twisted logic, but fun.

    That way you can stop contributing to the banks, insurance companies and government in profiteering at your loss.

    Like or Dislike: Thumb up 28 Thumb down 1
    • Dino years (Member) on Apr 02, 2014 at 9:45 pm

      but..a 10 year old persona isn’t going to be very fun to maintain. 10 year old anything isn’t very fun to maintain unless you have been the owner for the last 10 years. the average joe does NOT like to go back to workshops.

      Like or Dislike: Thumb up 14 Thumb down 1
      • tokmoh (Member) on Apr 03, 2014 at 12:30 am

        And brand new cars are fun to maintain? Like DSG? Turbo bocor? My Honda tak guna? Rusty seats in German cars? Prone to burn, need to change entire engine?

        Carama is good effort for average joe to know they’re not getting conned by workshop. Their loss if they refuse to utilise internet to get smarter with their money.

        That’s how some people just spend RM100k for car, yet gearbox breakdown more frequent than Proton’s power window, waste sh*tload of time, money and AL/EL/MC to do normal service, at authorized slaughterhouse charging triple/quadruple outside market rate for exact same parts.

        Inb4 butthurt

        Inb4 poorfag jealous

        Like or Dislike: Thumb up 14 Thumb down 1
        • 4G63T DSM on Apr 03, 2014 at 9:50 am

          Good one Tokmoh.

          A Honda rear O2 sensor is 1600-1800 (depending on which Honda 3S)

          The same Denso sensor retails at 800ish, “outside”.

          Like to get chopped much?

          Key is, do your homework if you want to save money.

          Like or Dislike: Thumb up 4 Thumb down 0
      • This is true because there are too many crocked workshops out there, you have to be really interested in cars and enjoying spending your time in the workshops and befriend the owner so they wont overcharge. The point is, it is easier buying new car and nowadays some manufacturer give long warranties and free service on certain models.

        Like or Dislike: Thumb up 2 Thumb down 0
      • 4G63T DSM on Apr 03, 2014 at 9:47 am

        You think if you buy a Persona and try to keep it for the duration of your 9 year loan tenure you don’t have to start forking money out to repair it past 5 years?

        So what is the difference.

        Even brand new cars isn’t immune.

        Given how much cars cost here, its more economically sensible to just keep and repair old cars.

        I’ve been doing it. In fact i’ve never owned a new car by choice…nor have I taken a loan to buy a new car.

        Yes, car repair is a turnoff for most people, but then its your choice if you want to pay through your nose and feed the crony.

        Like or Dislike: Thumb up 2 Thumb down 0
  • Tiger on Apr 02, 2014 at 11:08 pm

    I tink the bolehland ” genius” scientist who recently claimed tat cars above 12 years ( conveniently between 10-15) should be scrapped becoz not safe, he will have to continue drving until the day he gone, coz beh tahan intelest rates if buy new car

    Like or Dislike: Thumb up 2 Thumb down 0
  • Denaihati on Apr 02, 2014 at 11:11 pm

    i think it will gradually reduce time by time, or some promotion etc. give loan to really affordable person only.
    additional /improvement of public transpot is more important.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Head Hunter on Apr 02, 2014 at 11:23 pm

    This has been going on for the past two weeks with Yellow Tiger being the first to increase their rates. Heck, two weeks ago I can offer a customer 2.35% on a Vios or a Mazda 6 but now the rates have gone up to 2.7%. If you’re a HNW customer, it would only be reduced by 10 basis points provided you put in FD. by FD I mean a lot of it.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Norman on Apr 03, 2014 at 4:27 am

    My Johorean neighbour complain of the high cost,earning a mere RM3000 while his spouse earning just under RM2200 but living in a terrace house with parking lots,driving a Lancer GT 2.0 and his spouse Suzuki swift 1.4.The couples had 3 kids…And today told me that the wife wanna change car to replace her 3 and the half years old Swift…I earn more than them and my spouse earning RM5000 also use Hyundai and Proton..

    Like or Dislike: Thumb up 12 Thumb down 1
    • slk3879 on Apr 03, 2014 at 8:07 am

      So, what is your point?

      Like or Dislike: Thumb up 2 Thumb down 3
      • slk3789,
        The point is most of people are managing their money badly. Spending more than the amount of money they make. Placing the biggest money on the least important things. And, yet still blaming other people for their life hardship. Have you ever heard an old malay saying ‘biar papa asal bergaya’? This is what he’s trying to convey. Everyone should spend within their budget!

        Like or Dislike: Thumb up 12 Thumb down 3
        • cendol (Member) on Apr 03, 2014 at 10:15 am

          tell me someone who is not spending more than the amount they make?
          Anybody here pay cash for car or house??
          So EVERYBODY is spending more than the amount the make.

          Like or Dislike: Thumb up 3 Thumb down 0
          • tokmoh (Member) on Apr 03, 2014 at 11:34 am

            Salary rm2.2k, drive swift is dicing with death.

            A more acceptable ‘rule’ is the car cost less than annual pay. So she should only consider used car.

            For these kinda ppl, only God can have mercy on them when they get into trouble. Bankrupt by car, imagine the shame and sheer stupidity of it. Yet, 25% bankrupts r indeed caused by car. Padan muka

            Toyota got godlike reliability mah, get 90s corolla also sure reliable what. Scared what?

            Like or Dislike: Thumb up 3 Thumb down 1
        • If you have the $ and you don’t spend to pamper yourself, and yet struggling daily to see the amount in bank jump daily, that is not a healthy lifestyle.

          my friends’s uncle died and left a fortune for him, sister and bothers. His uncle struggle daily and spend so less for food himself, let alone lifestyle or cars.

          But make a balance, paper yourself within you means and live healthy.

          Like or Dislike: Thumb up 4 Thumb down 0
      • _xXx_ on Apr 03, 2014 at 6:34 pm

        He was trying to say Johorean can manage their wealth better…

        Like or Dislike: Thumb up 0 Thumb down 0
  • abuamir on Apr 03, 2014 at 7:29 am

    BN- Barang Naik

    Like or Dislike: Thumb up 2 Thumb down 1
  • Motorhead (Member) on Apr 03, 2014 at 9:15 am

    Banks are the culprit not BNM… puihh…Next car I ll buy cash or at least half is cash. Greedy banks.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Love our BN :)

    Like or Dislike: Thumb up 2 Thumb down 1
  • superdriver on Apr 03, 2014 at 10:47 am

    Welcome to Malaysia,where everything is up for grabs by the local banks and politicians. Seriously even house prices are so huge now its virtually impossible to buy unless you pledge the next 40 years of your life paying them everything you own only to comfortably live without worries when we have one leg in the grave already. By then must come up money to get buried(probably must take another loan already) Car prices in this country is exhorbitantly high and thre is no way any blue color worker like myself can buy without loan and this I dare say to majority of the people in Malaysia. Only the rich and the very connected are privilage to buy cars loan free and can change them as often as they like (like changing shirt every morning to go to work). I dont complain these people but I do complain when people say to work harder and earn bigger salary. Trust me when I say, this Is todays old wives tale. No one climbs the ladder anymore aside from mention connected people else we all would there already. Haiz…higher interest rate why not. Probably will start a riot within our heads but never in real life especially in Malaysia.We seem to be too pacified for that. This will not end until we reliase men do not live on bread alone or car or houses. So enjoy life , live less and spend the time with family children and friends more.These will ultimately the only thing we can take to our graves. Sweet memories….!

    Greedy people have existed even before Jesus Christ and will thrive till we are long gone. Kindness, love and mercy thats all I want.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Bongcs on Apr 03, 2014 at 11:29 am

    Shirt Squeeze Dry.
    Jeans Squeeze Dry.
    Now Spender also Squeeze Dry.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Markus on Apr 03, 2014 at 2:51 pm

    kerajaan didahulukan. rakyat dimampuskan.

    Like or Dislike: Thumb up 5 Thumb down 0
  • car prices is getting higher as time past. for those normal/middle income earners that wanna get a car, it is better to take a shorter 5 year loan instead of 7/9. pay more for the down payments, so that the monthly installments will not be a burden. always be prepare for the unexpected troubles/emergency may come during those period, like… recession, medicals, and asatra…
    well, interest rate for big bikes are much higher thou!

    Like or Dislike: Thumb up 0 Thumb down 0
  • CARtoon on Apr 03, 2014 at 4:52 pm

    That’s right. If Bank Negara wants to rein high HP numbers, the logical way is to cap loans and rrpaynebt tenure. The government can surely bring down the ridiculous car prices in this country. The high interest rates charged serves nothing but to enrich the banks and provide them with the safety net.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sam Loo on Apr 04, 2014 at 1:50 am

    Consider a 15 month old used Elantra.

    With RM35k-RM40k, can get a unit without the hassle of financing

    Like or Dislike: Thumb up 1 Thumb down 0
  • Cool daddy on Apr 04, 2014 at 8:55 am

    I don’t care. I still can enjoy HP rate @ 2.5% p.a. on monthly rest for my new car..Thanks to my employer

    Like or Dislike: Thumb up 0 Thumb down 7
  • mad maxxxx on Apr 04, 2014 at 7:14 pm

    If the financial institutions raised the rates without instructions from BNM, and they did it as a group, so wouldn’t it mean that is considered COLLUSION? How do we Malaysians get the antitrust proceedings to start?

    Like or Dislike: Thumb up 3 Thumb down 0
  • dondon on Apr 08, 2014 at 7:55 pm

    hallooo, BNM got nothing to do with the Car loan interest rates set to increase….. BNM do not handle car interest rates…. ini semua bank bank mau cari duit lebih then blame it on BNM….

    Like or Dislike: Thumb up 1 Thumb down 0
  • that means more people are going to be bankruptcy due to car loans..so sad, too bad.

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  • National car owner on Apr 20, 2014 at 3:21 pm

    No doubt we knew all banks auto loan rates had increased today. Without BNM green light there will b no one dare to do so… Like or not like the borrower still have to suffer the pain… Like me n who else :'(

    Like or Dislike: Thumb up 0 Thumb down 0
  • Danny on May 09, 2014 at 11:51 am

    All increase, car interest also increase, hayyaa, only kangkung not increse but now increase all ready.. http://goo.gl/sxOvbw

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