{"id":9259,"date":"2014-04-07T10:40:18","date_gmt":"2014-04-07T02:40:18","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=9259"},"modified":"2015-12-08T10:29:18","modified_gmt":"2015-12-08T02:29:18","slug":"car-loan-interest-rates-may-be-going-up","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/car-loan-interest-rates-may-be-going-up","title":{"rendered":"Car Loan Interest Rates May Be Going Up"},"content":{"rendered":"
For most working Malaysians, owning a car is not just a luxury, but a prerequisite to opportunity. Hence, affordability and sustainability of auto financing is a critical component in the lives of most people in Malaysia.<\/p>\n According to the recent report by The Edge<\/i>, interest rates on motor vehicle loans are expected to increase by about 40 basis points across the board soon. Some of the banks have already started implementing this increase, but not all banks have done it yet.<\/p>\n The following are the published rates for new vehicles registered for private use from CIMB, one of the banks that have yet to increase their rates:<\/p>\n <\/p>\n According to a report by Livelifedrive.com<\/i>, Maybank has already revised their rates from about 2.4% to 2.8% for a brand new Toyota Vios for a nine-year loan.<\/p>\n According to The Edge\u2019s<\/i> first report, the increase was allegedly a directive from Bank Negara Malaysia (BNM), to address the concerns on the increase of non-performing loans for motor vehicles.<\/p>\n With data from the Malaysia\u2019s Department of Insolvency<\/i>, car loan makes up 25% (the highest) of bankruptcy cases in Malaysia<\/a>, the move is said to deter the rampant application of car loans and reduce the average household debts (87% of Malaysia’s GDP at the end of last year) in Malaysia.<\/p>\n The Edge<\/i> also reported that non-performing motor vehicles loans have crept past the RM2 billion mark in the latter half of 2013.<\/p>\n However, in response to the report, BNM denied any such directive, with an official statement.<\/p>\n \u201cFinancial institutions set their own lending rates determined by various factors including a financial institution\u2019s assessment of a borrower credit standing, market funding rates and competitive considerations,\u201d said the central bank in a statement.<\/p>\n Regardless of the increment is a directive from BNM or due to other factors, the fact is, most banks are revising their rates by about 40 basis points. But how will new car buyers be affected?<\/p>\n If you are planning to get a car loan of RM65,000 for a period of nine years, you will be paying RM21 extra a month and RM2,268 over nine years.<\/p>\n Will this RM21 affect the sales of cars in the future? This remains to be seen.<\/p>\n <\/p>\n Having your own vehicle is a way of life for most Malaysians. But what if you have to pay more to own one? <\/p>\n","protected":false},"author":9,"featured_media":9266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[237,19,216],"tags":[219],"class_list":["post-9259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-autos","category-car-loan","category-news-updates","tag-bi"],"acf":[],"yoast_head":"\n<\/a><\/p>\n
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<\/span>Why the hike?<\/b><\/span><\/h2>\n
<\/span>How will it affect Malaysians?<\/b><\/span><\/h2>\n
<\/a><\/p>\n
<\/span>What are the factors that can affect car loan interest rates? Find out <\/b>here<\/b><\/a>.<\/b><\/span><\/h3>\n
<\/span>Understand how your car loan instalment is calculated based on the interest rates <\/b>here<\/b><\/a>.\u00a0<\/b><\/span><\/h3>\n
<\/span>Find out how you can save money on petrol by answering this simple\u00a0quiz<\/a>.<\/strong><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"