Higher car loan rates

I am paying for 3.5 % for a nine year loan for my myvi. I am glad I bought it early because the interest went up to 4%. that's a lot of money. it means you will pay RM 20 more than me every month if you go for more than 5 years term loan and Rm 8 more than me for a five years term loan. Now i love my Myvi.RM 20X12X9=RM 2150 more out of your pocket. for you information, I am paying almost RM 15000 for the interest and you might be paying almost rm18000 for the interest for a brand new MYVI for nine year term loan.

The news is attached below:

PETALING JAYA: Interest rates on car loans have increased by an average of 0.25 percentage point for national cars and 0.7 percentage point for non-national makes since the overnight policy rate — the benchmark interest rate which determines banks’ lending rates — was revised upwards by 25 basis points to 2.25% in early March.

Proton and Perodua car loan rates had been adjusted to 3.75% for loan tenures of five years and below, 3.9% for six to seven years and 4% for eight to nine-year loans, according to major car dealers. Previously, they ranged from 3.5% to 3.75%.

With the new rates, for example, a person looking to purchase a RM40,000 Perodua car with a five-year loan tenure (at the new rate of 3.75% per annum) will have to pay RM791, or RM8 more, per month.

This goes up to about RM20 more a month for a longer-term loans.

As for new non-national makes, a dealer with Kah Motor Co Sdn Bhd which distributes Honda cars, said hire-purchase rates for new non-national cars had been raised to 3.25% for loan tenures of five years and below, 3.4% for six to seven years and 3.5% for eight to nine-year loans.

Before, hire-purchase interest rates were in the range of 2.4% to 2.8%, he said.

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