According to a report by StarBiz, hire purchase interest rates have gone up by about a quarter of a percent early this week. An EON Bank officer told the StarBiz reporter that hire-purchase loans are now at the following rates:
|Non-National Cars||National Cars|
|5 year loan – 3.5%
7 year loan – 3.75%
9 year loan – 3.85%
5 year loan – 3.85%
7 year loan – 4.00%
9 year loan – 4.10%
The previous rates were between 3.25% to 3.5% for non-national cars and between 3.75% to 4% for national cars. These rates are a good 1% higher than that of the rates not too long ago where you could get a loan for a new non-national car for 2.8%. I myself got a loan from Public Bank for my E39 two years ago for just 3.75% and that’s for a (then) 11 year old non-national European marque. A friend of mine bought the same model of E39 last year and is paying nearly 6% of interest!
A 1% hike could cost a user an extra installment amount of between RM50 to RM100 a month, with the upper end not seeming like a significantly amount when you are taking a loan for over RM100,000 and paying over RM1,500 a month although it is still money.
Has the higher interest rates changed your car buying decision recently? Please share in the comments. Also, if you’ve purchased a car this year if you’re willing please do let us know what car you bought as well as the bank you applied the hire purchase loan from, the interest rate you got and your loan amount and tenure.