5 Things You Need To Know Before Applying For A Car Loan

5 Things You Need To Know Before Applying For A Car Loan

Purchasing your favourite car with your savings is probably the most practical thing that you can do. However, not many of us are privileged enough to do so. Hence, car loans or hire purchase exist at this current time of our lives.

There are a lot of banks in Malaysia that offer hire purchase services for individuals, companies, and more. In fact, you can choose to do installment plan for up to 9 years.

  • Pre-approved car loan

A couple of visit to the banks and enquire about the interest rate you are able to get based on your credit score and from there you will know which pre-approved loans that you can afford. Most car loans are different from one another depending on banks, however you can try checking out RHB Hire Purchase for the all the benefits that you can get from it.

  • New VS Old Cars

The formula is, most commercial banks will charge higher interest rate for used cars because of the lower resale value. Other than that, it is also hard to predict the value of the car within few years of time of loaning.

If you can afford to pay a big amount of down payment, then most commercial banks in Malaysia might offer a lower interest rate if you decides to opt for a lower margin of finance. In fact, you can try using the car loan calculator before finalising your decision on everything.

  • Short Tenure VS Long Tenure

Once you have the overall figures and budgets for the car loans of your choice, you can compare the pricing given for the tenure periods. Most commercial banks tend to charge lower interest rate on car loans for a longer tenure as compared to shorter ones. To sum up, shorter terms would be better if you have enough amount for the monthly repayment.

  • National VS Non-National Cars

It is common that non-national cars like BMW or Range Rover gets charge a lower interest rate if it is compared to national cars like Perodua and Proton. Despites a slight difference, it shouldn’t be at your top priority when you choose a car to purchase.

Conclusion

It is extremely crucial to further analyse your overall financial portfolio before deciding to request for a loan, in anything. A lot of financial savings can be done when you choose the right car loan that matches your budget. If you are interested to know more about RHB Hire Purchase, head over to https://goo.gl/Bjs1wL