Around 80% of owners of Proton and Perodua vehicles take loans of up to nine years on their vehicles, and some extend the loan period even further if permitted to do so, according to AmInvestment Bank cited by New Straits Times.
In its investment note, AmInvestment Bank wrote that the cars from the two national carmakers are the top choice among the low- to moderate-income demographics, and the cars are considered a consumer necessity rather than a luxury for these income demographics.
“Their priority is the monthly repayment instalments. Their financial balance is influenced by the prevailing interest rates. The everyday people closely monitor the overnight policy rate (OPR) as their financial situation aligns with it. This is a factor that the government cannot overlook,” AmInvestment Bank was cited as saying in its note, adding that Bank Negara Malaysia has maintained the OPR at 3.0% since last May.
Vehicle loan applications and approvals are maintaining a strong rate, particular for the Perodua Myvi, which continues to see very high demand. This is driven by buyers rushing to purchase their vehicles due to concerns for potential increases in the OPR, which would increase vehicle ownership costs, reported New Straits Times.
Meanwhile for used vehicles, demand continues to be high and show no signs of being affected, according to AmInvestment Bank, as supply chain issues last year resulted in lower production, and demand for vehicles was pushed to the used car segment.
“Sales are strong, but mostly for the affordable car segment, especially for those made in Japan and domestically. The current trend also shows buyers avoiding purchases of cars with large-capacity engines, [which] may be due to concerns about fuel subsidy rationalisation,” the report continued.
On a separate view, AmInvestment Bank observed at showrooms that there is strong interest shown in battery electric vehicles (BEVs), where potential buyers are comparing fuel savings against electricity costs. The bank noted that BEVs “are currently the focus of car enthusiasts, especially among the T10 income group who view such vehicles as ‘toys’, suitable for weekend use,” the report wrote.
“Of all the EVs purchased, customers opt for loan periods of five years, and some even pay cash, which is a common practice among the elite T12 group. Furthermore, various tax exemptions such as [for] excise duties, sales tax and road tax make BEVs a worthwhile investment for the elite,” AmInvestment Bank was quoted as saying.
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thanks to PMX, last time he stretch out the loan from max 5 years to 9 years during his era as Financial Minister. now everyone can afford a car and boomb, bad traffic everyday! Kudos Mahal Dah Ni
When one realise that these are just national brands and the cheapest cars that anyone could buy, yet having to stretch the loan term into 9-11 years is goes to show how bad things are today. The people are desperate and here this gahmen wants to raise taxes, wants to end subsidies, wants to keep inflation high, wants to make people lives miserable.
Does the PH helangs have a grudge against the people for not voting them? Is that some sick vendetta in their minds & the mindtrip of PMX?
We need a sane gahmen back!
Vote bossku for next PM
Wats da problem wiv Yiddin. Ge15 voted wrongly for Pas
Career path for ex-convicts. Seems like jail sentence is a requisite to be PM in mesia. Abahcow don’t have that in his CV.
Africa hav Nelson Mandela.
India got Mahatma Gandhi..
Mesia ada eddy bawang n geng. Haktuihhhh
I would totaled my EV during
3rd of the 9th years loan
no RV being left behind
Which bank give 11 years? I wanna stretch my Lamborghini urus monthly installments
Some chatter online ppl saying want 11 year loan
The alternative will be unthinkable & disastrous: returning to more cronyism, wastages, inefficiencies, corrupt practices; leaders caring for their own gain/welfare, leading to more stealing/siphoning of taxpayers’ funds > more crime, more immigration fraudulent practices > increasing migrant flowing in & migrant crime > intense competition with locals. Breakdown of law & order, Distress, hardship, fears. Migration abroad (even to Thailand) will increase, etc.
Caring for civil servants, their pensions, health care, is putting tremendous strain on govt coffers, besides the enormous amounts stolen by past greedy leaders. 1.5 Trillion RM debt, & increasing…
Present madanon gomen any different?
Disastrous? How is that disastrous when the economy was in far better shape, people have jobs, people have money in bank, people no need to raid their EPF, ringgit was at all time high, investments were coming in, HSR was coming in, ECRL was coming in, our debts were reducing and we were no longer the sickman of Asean? Now we are laughing stock of the world and back to being sickman soon maybe deadman of Asean.
Is this your “better” alternative?
You’re right. Last month, my domestic helper asked me if I still can afford to pay her salary. I felt so offended. But she’s right. We might have to work as domestic helpers in their country soon. How the roles have been reversed
Stop talking crap. The 9 yrs loan only introduced in the mid 2000s.
Germany,Japan…England…some in recession or on verge.
Next year is predicted worldwide recession,these high flyers with 9 year loans,those without planB,most likely will utter “tarik keta lah..apa boleh buat”.
We r pushing thousands of workers into huge hire purchase debts…starting with a big chunk of Goodyear Msia jobless dudes.
So, the poor are really poor, and the rich are really rich. Awesome, carry on your day.
Anwar menang, rakyat sengsara
Anwar kalah, rakyat gembira
Is T12 group something new or it’s just typo from Mick?
Terima kasih kerana membayar bonus kami
Yeah, cars are just too expensive in general that a typical Axia, the cheapest new car in Malaysia, needs 9 years loan.
Yet, the roads are so full of cars till jam like stupid.
That i guess, is the result of potent combination between bad public transportation and accessible loan and bad financial education of our youngsters.
Spoken like a true master. Totally agree with the points that you said.
On the other hand, Perodua cars are pretty durable hence taking 9 year loans even if you can afford 3-5 year loan is not a bad idea. Extra cash could be stashed away in ASNBs or other dividend paying investment which gives you more money and also the option of settling loans earlier if you so wished.
Kudos for this mindset, i hope more if not most people think like this.
however, i’m sad for the peeps that have to take 9 year loan just to go to work yet barely have enough to save. May all our salaries be enough for us.
I think you have it slightly wrong. Nobody takes a 9yr loan over a 5yr loan for investment. That’s more of a topic of buying car with cash vs taking 3-5yr loan then invest the cash to cover interest.
Imo the new line of perodua is already not budget friendly anymore except the bezza and base model Axia. Used myvi and axia are the only options.
Stop saying our public transport is bad. I took public transport in KV sometimes and it is convenient. We cannot compare us to SG, Japan or Korea who were thousand miles away from us and they are developed coutry. The problem of Malaysia is “bad financial education” and also “laziness to walk”.
Ask a graduate in KL Selangor, after graduate most people will start planning to get a car right after they got a full time job. Worse is many undergraduates already owned a car and drive to study. How many of these people will take public transport when they used to drive. Owning a car is cheap in Malaysia cos we got Proton and Perodua, fuel price is very cheap (top 10 cheapest in the world). People do not want to take public transport even if the cost is only RM 50 for myrapid monthly pass. People give excuse public transport not convenient and take longer time to reach destination. They rather burden themselves by paying monthly instalment and car maintenance.
I have been staying Japan for some times. It is convenient to commute but bear in mind, the train station is always 1km or further from their accommodation. They always walk 20 – 30 min to the nearest station and after reach the destination station still need about 10 – 20 min walk to office. And just in case you don’t know that Japanese always spend more than RM 1000 to take public transport, it is not cheap but still cheaper than owning a car. Japan car is cheap but petrol, tolls and parking fee are more than car instalment.
Malaysian should change their mind to take public transport. When riding rate increase government will open up more lines.
Unfortunately… KL and Selangor only makes up about 30% of Malaysia’s population. It’s still valid to say that the majority of Malaysians don’t have good public transportation options.
Yes?
“Many undergraduates already owned “a” car…..Hello,my cucu in year One,dont mind give u free Grammar lessons.
No wonder,people like u r sent out of the interview room by uttering such horrible English.
Most of our graduates are still jobless because they cant even converse in simple English.
Walk 30 mins? Safe or not.
bcoz ppl think walking and taking public transport is shameful and it’s only for the poor and bangla.
i dont hink there is anything new here that we don’t know…
There is something to make from this data. In the past it maybe common stretching to 7 years for a Proton but todays 9 to 11 years was unheard of before and it shows how desperate the people are to stretch every shrinking ringgit.
We need to get back a functioning Gahmen!
Kalo dah kais pagi makan malam tu, agak2 je la. Apasal degil sangat nak megah holding pakai kete? Tak boleh naik lrt pi keje bas express balik kampung? Tolong ye jgn buat semak kat jalan raya. Ni belum bakal mak mertua tanya apasal tak bawak jenama H lagi
Assuming buying a brand new Proton Saga for RM40ribu with 90% loan, 3% interest rate for 9yrs.
How much is the total interest charged by bank
Thats how we malaysia support our banking system!
Those wanna stretch to 9 years, better go die lah. Many choices for 2nd hand car to choose.
Mama, tengok….dia suruh kita pegi mampos….
Mamposs kepala bapakk! Wkwkwkwk
40k loan, 9 years @ 3% = about 5,500 accumulated interest.
BEV adoption depends on early adopters suffering
– High prices, massive depreciation
– Lousy(ier) motor, battery tech (range, charging time, weight, performance)
Just so CPO (Charging point operators) can justify investing in charging infrastructure. Don’t bash the “rich”, they are paying to pave the way.
To those who say “EVs will never become viable”, just remember EV tech won’t stay at 2024 levels forever. A RM50,000 (or even lower), 250,000km@90% SoH, 500km real world range EV car that charges in minutes, will come in your lifetime.
Fossil fuel runs out in 2060 and it will become more expensive as we get closer to depletion. Like it or not, BEV is the future of motor vehicles, not dinosaur juice.
Kita naik kete lembu je bila minyak dah habis. Tak mampu beli EV huhuhu
Crude oil doesn’t come from dinosaurs. And it’s unlikely to be depleted. They have been saying that since 90s.
“fossil fuel runs out in 2060”. I’ve been hearing this since i was 13 which made me switch my ambition, thinking that it would really runs out by the time I reach 30. Now I’m already 36 and the goalpost of when the fossil fuel will run out moves again.
affordability matters the most. and also the plight of cashflow.
In developed countries you’ll never see B40 and hardcore poor families owning a private means of transportation. It’s just not possible. However, given we’re the #2 in the world in terms of straight up car prices, we still have so many cars on the road where B40s are clamoring over the latest Peroduas and Protons.
So yeah, something is seriously wrong.
Tak suka kami B40 mampu beli kete? Sila balik (insert country of origin)
We wont be having this discussion if the RM is not as pathetic as it is right now.
Repeat after me
Ringgit undervalued, economy fundamentally strong, economic prospects positive
Some of us really dont need a new car with new car installment till 9 years.
What some of us need is just a mode of transport. What i think would be benificial is to allow financing/loan for vehicle above the age of current practice. Its a win-win situation for consumer and financial institution.
Right now rakyat are forced to pay higher installment as they dont have a choice.
How to recruit new downline and scam ppl if didn’t drive new sports cars?
Long loan duration is also not good for growing economy. Lots of money already spent on cars and houses we only have so much to spend elsewhere.
P1 and P2 only meh? Honda also many are taking 9 yrs loan too. It’s B40 dream car brand.
No choice. Future mother in law don’t let us marry their daughters if we don’t drive Hondas
ya many but not reach la 80%. but i see in honda fb group too many buy with high downpayment and taking 3-5 years loan only. ngam2 warranty ends, they sell the car. i also see many people buy x50 with zero downpayment and pay 1200 monthly. crazy huh. 1200 for proton, thats totally b40 dream car brand.
Yup, now we run all proton number plates we see on the road against our database
Janji kereta baru bro.
Barulah tak malu balik kampong masa raya. Kalo jenama H, makcik kiah rumah sebelah terus ajak meminang anak dara dia umur 16 tahun
honestly nobody wishes to take a 9 year loan if they could. expensive houses expensive cars low wages, its a crazy problem we have here isnt it
Terima kasih kerana mengundi kami. Dah daftar PADU belum?
Crazy problem from a crazy gomen
If public transport is as efficient as major European cities/ Japan/Spore, most ppl wont need to be burden with cars loan.
If you listened to me….
All vehicles above 20yrs must scrap. Too many bc bruk otr
this is another piece of information that goes to support the idea that most P1 & P2 buyers are from lower income group. that’s all.
i can’t say if it is good or bad. but a new situation will arise when RON95 is no longer subsidised. Cost of car ownership will be an issue for family expenses. targeted subsidy may help but to a limited extend. So less driving more riding perhaps if possible or use public transport
let’s see how it goes along the way…
T12: More riding? Oh no….I have to increase insurance coverage on my Lamborghini side mirrors
B40: singing (everybody’s kungfu fighting)
Who said P1 & P2 buyers from lower income group? I bought x70 for my gardener to transport manure & myvi for my domestic helper to do wet market runs
all the companies like banks, car sellers laughing while the poor saddled with debts after debts……
T12: We wear Ferragamo belts around our waist. You?
B40: We wear debts….
I am confused of the statement that 80% of P&P owners are on a 9 year loan. Are they just taking from a point in time and check what are the loans that are still outstanding and then categorise it according to loan tenure percentage? If it’s so then of course there will be many 9-year loan tenure still outstanding as it is the longest tenure and the shorter tenure loans has been fully paid off and not counted in this 80% statistics. Also I know many people who bought their Myvis/Axias in cash, which i’m pretty sure is not taken into consideration. This report is skewed and biased to achieve its own agenda. I can’t even get the source of the report hence I can’t determine how they calculated their statistics. Very misleading to say the least
i see some used car dealer like destini auto can stretch loan to 20 years..
Otherwise how can we afford our alphards and vellfires?
What to expect? Perodua and Proton is the currently cheapest can buy in new.
Daily cost of living are sky rocketing and no one can live properly without a car. Yes, many arguing can take public transport and motorcycles or even buy a used car. we have many way Pro-Cons to consider. A new car can be problem free when it is under warranty, as long as the buyer can folk out the money every month to pay for the car, he can live peace of mind at least next 5 years.
Well, many go for 9 years and 90% loan is due to reserve some cash for other emergencies and think the financial situation can improve over time and some may think can upgrade for a better and continue the 9 years loan again since he have to pay more with salary increase. so the cycle repeat itself
With a salary of 2.5-3k (just f.e.), get used 1st gen Myvi or Axia instead. Your wallet and mental health will appreciate you. Graduates need to stop shooting themselves in their feet buying new cars. New Axia is not graduate friendly anymore. Manage to get loan approval doesn’t mean you could afford it.
The government gives a lot of tax exemptions on cars for people who can afford to pay a quarter million ringgit in cash. Means they probably can afford to pay more.
Whereas the majority of buyers of the cheapest cars needs a nine-year loan.
I know it is about increasing the EV adoption rate, attracting investments, driving for more EV infra, etc, etc. But I think the dichotomy of the state of both groups are a bit too much.
It is ironic that the government are giving tax exempt status to those who can afford to buy ‘premium’ vehicles. i think that’s a mistake. tax exemption should go for those EV below 100k la… might as well help P1 & P2 to get their EV initiative started.
Many people don realize that by taking a 9 year loan, we are actually paying double of the car price…which is already expensive in Malaysia!!
We live by this life quote. Aiya, you won’t understand one la
A long time ago car prices were increased because of increase of car import taxes in the guise to protect a local car industry. That local car is no longer a local car, thus should not be eligible for protection no more. But government now see the taxes and duties as an income. To reduce fuel subsidy, these taxes and duties should be reduced accordingly to suit fuel prices and car prices.
Another thing is people take a car loan to pay for the car(of course) and the taxes and duties for the car. Perhaps the government can tell the banks the part of the loan for the taxes and duties should not have loan interest on it. Only the value of the car should the loan interest be imposed on. Imagine you take a car loan to pay taxes and duties, and on top of this service a loan interest on it. Double whammy.