Wednesday, June 25, 2008

Of Car loans interest rates

The good news first. If you are still serving a loan for a Proton or a Perodua, congratulations! You may be paying less in installments soon as the Government brings the interest rates down by 0.5 per cent. Yep, that's the plan to help lessen the Rakyat's burden after the massive petrol price increase.

Now the bad news. If you own a foreign-made car or 4x4, too bad. The rates may go up by 1 per cent, man. If the thing runs on diesel, has an engine bigger than 2500 cc (like the Rexton in the picture) and is registered in the Peninsular, you're screwed!

57 comments:

BrightEyes said...

Proton hasn't been doing so well, with stock price now around RM3. And the AP holders probably need more money. Should've sold off Proton in full to VW last year...

Meanwhile, ordinary citizens have to deal with higher prices if they want a reliable car. Its either that or a local rustbox.

Khun Pana said...

Why cars?
If the bloody stupid government is so bloody concern about the people , why not lessen the housing loan ( low and medium cost)rates for the first time house buyers.
As a matter of fact, those abandon housing projects ought to be settle first.
And if the bloody government is so concern when it comes to local cars why not removes the taxes and duties from it.

mut said...

What the hell?

The price of cars here in Malaysia is nearly double for a 2.0l normal family sedan and the BN idiots are talking about a 0.5% rate decrease for local junk/cars only?

Why discriminate? After all Proton and Perodua are only selling re-badged models passed of as a national car.

Car prices in Malaysia must reflect a fair price for value. After all isn't this mantra the underlying reason for the increase in fuel prices? How much money can car buyers forgo to pay for ridiculous government taxes? This tax is akin to a subsidy to crony company Proton and Perodua innit? But this is kosher for this fuel price raising government? This way Proton and Perodua can produce junk and sell them to the Malaysian public who can't afford an imported (read better) cars.

Anonymous said...

How to sell Proton....these guys think they can still kelentong and rip-off would be buyers. Our government never negotiates for the best deal for its people but the best deal to line individual pockets....that ultimately is the sad fate of this country....now in rapid freefall to being a failed state...

JOHNNY DEPP

JS said...

Rocky,

My 4wd is 2800cc, running on diesel, registered in Sabah but I've brought it to Semenanjung and still has 2+ years of loan. I'm screwed kaw kaw...

JS

monsterball said...

Right now....I think many car dealers may close shop.
And we may see more cars being towed.....due to no pay car loans.
Usually they cover the license plate...to avoid embarrassment to owners.
I don't think the good news will ever be enjoyed by anyone...as finance companies will take the 0.5% lower interest rates to off set much higher operational cost.
Banks and finance companies are the real real loan sharks!!
There are so many loop holes...that give banks to do things as the like. That is the biggest problem with our banking system.
In the old days...one need to pay 20% down payment to buy a car. I think that's a good system. Now one is pampered with no down payment at all..but the monthly installments insisted are never under controlled by the government.!!
I approved two protons for my workers...each with RM500 down payments....and for 7 years installments. I calculated...each year cost my company more than 17% loan interest.
That stupid accountant of mine.. knows next to nothing about accounting...buying the two cars..just because easy low D/P and long installments.
He did not even calculate the 7 years of comprehensive insurance policy...that finance company will insist and earn the extras...so many..like again interest on slow payments.
Did you notice...so many banks owners are registered ...all worth more than RM1 billion people?
That is unheard off in old days.

flyer168 said...

What's new in this Bolehland !

Everyday the downtrodden rayaat is getting SCREWED further by the BN gomen at every turn....how do they expect the rayaat to make ends meet & survive ????

WY Kam 甘永元 said...

rocky, how are these good news??

the govt is trying to manipulate the car market via interest rates? lowering any interest rates for lending is inflationary, adding to the inflation pressure we have. otherwsie, we ll have govt official running to banks telling them what's the interest rate they can or cannot charge for each item (cars for now). wtf. we don't need our govt running our business...we know how "good" they are at that.

Anonymous said...

Proton dealership monopolised by AMENO goons who're still as arrogant as before. bungkus la..

DIL

the one and only said...

That is way my theory that Malaysia is growing more and more like Indonesia by the day is correct, this is the making of Bolehland to Bodohland to Busokland. The continity of the Dr.M Busok legacy with the core idea of spend off the country money until the rakyat have to eat ubi kayu.

Anonymous said...

Why? No enough money already? While we are struggling to deal with the sudden increases of everything..does anybody ever check the past and present price of most popular transportation of all the (motorcycle)related tax whenever fuel price goes up?

JustACommonPeopleler...

Anonymous said...

mr brighteyes - 2.19 am

I totally disagree with you on your second paragraphs. It reeks of snootiness.
I drive a Waja, my daughter drives a persona, my sister drives an aeroback and among my relatives, theres a springkling of kelisas, myvis, kancils. They are anything but 'rustbox' as you call it.
Sure there are niggly problems but then so has my son's BMW.

By the way my son has never complained about having to pay more for his beemer, or maintaining it. What you pay for is what you get -thats his principles.

So , if you cant do the time, don't do the crime !


manamanu

Mr Turtle, I am sorry said...

Rocky...the moment I bought the Persona, which I traded in with my beloved 89 merc 230CE, I was already screwed.

It gives like 10 miles to the gallon, the rear tire sounds like its coming off when I take a turn, the air conditioning system sounds like the howling wind in the artic, there is no ABS for 50k, the rear and side visibility is designed to increase the possibility of being blind-sided and rear-ended,the exposed nuts and bolts and cheap material help increase fatal injury risk in accidents and it is just plain unwieldy.

I miss my Merc...even though I was the fourth owner...it was still a dream...

Goostee said...

Hey....what about us who have paid our loans years ago and have to be stuck with our aged Protons ? Due to financial constraints we can't afford to change for a newer Proton and, hence, no loans outstanding. We still have to pay for our petrol at the hiked price. Worst still, we are also forced to take up Personal Accident Insurance policies when we renew our Road Tax. We are being hit bad from every angle, man !!! Anyone listening ???

Anonymous said...

I think your story is somewhat misleading, rocky. if you're already have a car loan, the interest rate is locked for the duration of the loan. if there's an increase, it will affect new car loans.

SP

Anonymous said...

Manamanu,

The real price of Camry is about RM70 to 80K in Langkawi. Altis is arouund RM45K before Msian Taxes. Who benefited from Proton? My well maintain wira is a rustbox. The worse part the rust is due to some adhesive material used by proton to joint the material!! Yes, support Proton and make the AP holders happy.

Littlebird

Anonymous said...

Anonymous,
Whatever steps the government introduced thus far to help the people are half hearted efforts. It is still benefiting the rich. If the government is serious about helping the people they should have remove road tax for cars below 2000cc and tax car above 2000cc more. This will help the lower income group. Current rebates are pure rubbish and half hearted. Of course this is in line with all the things Badawi is doing, half hearted efforts. It is also time to get rid of BN government and all the corrupt ministers who are squandering of public money and enriching themselves, cronies and families. How long can the common people put up the the UMNO/BN bullshits!!!
Disgusted Citizen

Anonymous said...

Question: The loan is signed already, terms and agreements agreed upon.
The govt can change the terms and agreements after the S&P for a car is signed?

Or does this affect new car loans only?
AOHC

NaikMinyak said...

Look, this depends on which side of the fence you are at. This will help lower/fairly low income earners to own/maitain local made cars. Fact! lower income earners cannot even dream of buying a foreign-made car. I have no major qualms with local cars and I don't own a foreign car. I was earning RM2800 p.m. and needed a car to go to work. My choice was a Proton Wira SE considering all expenses i.e. roadtax, insurance, monthly installments and maintenance. Yes, I had one problem with the brand new car, the Fuel Meter gauge stopped working (was still under warranty so I had it fixed FOC). But no, it has yet to breakdown in the middle of the road InsyaAllah. I was very proud of the car although my family has never favoured Malaysian made cars (true confession of a middle class offspring). However, hard times (considering I was no longer on my parent's dole) told me to make a choice and I did and until today I am glad of it.

So, for those who owns a foreign-made car, rates will go up by 1percent ey! I don't think you'll get screwed. Once you have the luxury of owning a car that's a fule guzler and has a name that you sometimes think you can pronounce, you will be able to absorb the 1 percent increase I'm sure. Only your take home will be less than usual (not negative).

I don't see this as a conspiracy. I see it as a blessing in disguise. Nonetheless, Proton and Perodua, let's not be complacent or start calculating your projected profits from this lower interest/increase in demand scenario. We drive our cars 'balik kampung' with pride and satisfaction. We are not proud of standing at the roadside waiting for the tow truck to come in the instance of a breakdown (apart from that tow trucks cost a bomb). Proton and Perodua, please don't forget about customer satisfaction and quality (do remind your vendors especially). We may be desperate but we are not stupid.

budok telipok said...

Rocky,

Are we saying that the HP rates are to be adjusted during the financing tenure? Do you not think that there's not enough thought process being put before coming up with such policy? I'm sad!

bloodkingsingstheblues said...

Phew, good thing I drive the savvy and the waja ... yaay! Go local cars! But hang on ... am I doomed to drive local cars forever and ever and ever?

jebatmustdie said...

I do not understand one thing. Why increase the interest rates of foreign made cars? How can this lessen the burden of the rakyat? The govt won;t make money out of this but the banks will gain extra income. How can govt redistribute this income? It won;t belong to them? How about the people who dirves hyundai or toyota? These are foreign made cars under RM100k and they are being driven by lowerr income group.

poltical soapbox said...

bro,

better sell off your rexton and buy a honda c70. no parking fees and less fuel consumption

Zealot said...

Bro,

speaking as an ex-banker, 0.5% rebate does not contribute bloody great comfort as compare to the increase in fuel. car owners have to pay road tax, toll, license renewal and insurance.

this is another bloody fucking joke by umno-bn govt, 'mentaliti jamban'.

pthhuuiiii...!

Letting the time pass me by said...

If you own a Proton, then it will be a proton.. A proton is not a Beemer, Merc or Volvo, or Toyota, or Honda...

Proton like Wira or Perodua like Myvi maybe has the cheapest maintenance... and it can be easily maintained.. Any workshop have the knowledge to repair it.. But when it come to continental, not many workshop have the gadget to diagnostic a BMW, Merc or Audi...

biskuttawar said...

They should abolish the duties and tax on cars costing less then 100 K and allow full EPF withdrawing to settle or part settle our first house.This way the rakyat can coup up with the rising cost. But they want us to pay interest to the bank in the long run, so they can make money.And they want us to change our lifestyle. "WHAT A STUPID IDEAS" they got !!!!

ex banker said...

rocky,

can you check why CIMB took 2 weeks to clear cheques bank in to our account. The reason gven is their system is down but the ATM is working well.

Such a big org should have a good back up system. Are they trying to do something funny here.

Anonymous said...

Rocky,
this will apply only to new car buyers applying for new loans. Existing car owners/borrowers have their rates locked as under Hire Purchase Loans, fixed interest rates apply for the duration of the loan period.
Leonard

Anonymous said...

lol, like it or not the country is rotting.. i earn RM2500 monthly, outstanding car loan left RM28,000, outstanding personal loan rm 8,500, credit card another RM21,000... shit man I'm broke...... but ghee, looks like I'm not the only one.... the country is going broke too... All thanks to our UMNO, BN and MIC..... for all these year I vote for them, this is how they repay me.... higher petrol, higher tol, higher utilities bill everything also goes up... what was suppose to benefit the RAKYAT has gone into the pockets of UMNOs.. this time mati liao...

danet7882

Anonymous said...

Following my earlier post, I've been informed by car industry sources that Bank Negara has shot down a proposal from banks to increase car h/p rates from next week.
SP

Observing Observer said...

danet7882,

if you have an income of RM2,500, why the hell do you rack up credit card debts of up to RM21,000??

it is the height of irresponsibility to blame your own lack of control on how you consume and spend on the government!

Anonymous said...

guys, stop gripping. the govt is running around in cricles like headless chicken. all these measures are just like band-aids.
by the way, no way the govt can impose additional rates for existing loans coz the rates are fixed!

yy

rams609 said...

JS and friends,

I'm gone! In da drains!
1 cheap BMW and C-CLASS each, and an old 97' Jeep Grand Cherokke 4.0 litre. Already not running the Jeep as the road-tax is RM 3200+ per year.Done everything up and won't cost a cent selling it.

I AM FUCKED BIG TIME!!!

PLEASE CHANGE THE ASSHOLES IN THE GOVERNMENT!!!!!

Kacang panjang said...

One Mahathir crony down. Who's next?

http://thestar.com.my/news/story.asp?file=/2008/6/25/nation/21651121&sec=nation

rams609 said...

THIS IS WHAT HAPPENED WHEN YOU AGREE TO CUT THEIR ALLOWANCES BY 10%. STUPID DOLLAH AND GANG!!!!

ben said...

Dont you think that the govt should be reviewing the PPA of IPP, import duty of cars, toll concessionaires agmt which are the root cause of rakyat's suffering, instead of using bandaid methodology.

Anonymous said...

bro,

tapi kalau org tu dah bawak rexton, secara logiknya dia tak heran dah naik ke turun ke % tu. sebab dia mmg byk duit... hehehe....

pasbodo

Edy said...

dear danet7882,

pity for you as pity for myself too. But you've faced more difficult because of your vote of trusted.

I've change my vote on the last election. I think it will stand forever as I want to see these UMNO led BN scum to collapse.

I agree with khun pana suggestion, the government should extend to housing loan installment too.

can you all sense a little bit of advantages that has been taken by the government on 1% of foreign car versus 0.5% of national car?

Anonymous said...

It is a sin to drive any other car except Perodua or Proton. You must syupport the national car, failiong which you shall be penalized.

So what is going to hapen to your REXTON, bro Rocky? The diesel is RM2.58 per liter. The R/Tax is RM1400++ and the interest will be raised up...

Juara Roti.

Birds Talking said...

About to renew my road tax for my 1.5L car. Besides paying da monthly repayments, da insurance itself is already RM1,777.00 per year after NCB. With the inflated price of cars, come the inflated price of Insurance too! WTF!
By the Way, wtf is the "Service Tax" on the insurance for? It is another RM 85!!! to pay on top of Stamp duty RM10!!!
Tax,tax,tax,Duty,Duty,Duty!!!!!!!
Eat enough or not!
Fcuk da Gormen

Cheers and Regards
Birds Talking

galadriel said...

my condolences Rocky.Heh Heh!

sammy cheng said...

wait.. the 0.5% decrease and 1% increment does it include those who is already paying their instalment? or only those who bought their car after the announcement?

Anonymous said...

What a BLOODY, BLOODY, IDIOT, STUPID, HAPRAK government ! May you roast in hell!You BODOH, TAIK, BANGANG, you take our tax money and say you are giving it to us back?

Suffering Daddy.

Anonymous said...

Sounds like only half the story.

Can the government change a prior Hire Purchase agreement? Or is this just for new loans?

Even then it reeks of cronism trying to boost up sales of Protons.

I bet some minister in some ministry will claim to level interest rate disparity between Protons and "others". There's always an excuse for everything.

Lucky my cars are free and clear of any loans. I've still yet to pump gas at $2.70...hopefully not until next month.

JC

Anonymous said...

BETUL KE BERITA NI? SILA BAGI TAU DIMANA KAU DAPAT MAKLUMAT INI. DAN SILA PASTIKAN MAKLUMAT INI BENAR.

KEPADA SEMUA, SILA TELITI MAKLUMAT INI DAN PASTIKAN KEBENARAN MAKLUMAT INI BARU LA BOLEH BAGI KOMEN...

-rimbamalaya-

Anonymous said...

this the present we get after elected BeEnd as our Gormen.


nak71

sunnyside up said...
This comment has been removed by the author.
me said...

Great.

4WDs are prevalent in East Malaysia where roads are crap and the road tax for them are lower.

If the rate increase applies across the sea then way to go, political maneuvre!

Anonymous said...

bro rocky

jual aje rexton tu, drive a merc harga boleh dapat below 20k lagi puashati daripada drive national car yang harga lebih 30k beb..! hehe..

nony

Oldstock said...

Alamak bro,

I'm screwed la! I drive a foreign-made 4x4 with engine bigger than 2500cc, registered in Peninsular. Crap!

Jovis Low said...

Abang bru, Toyota Avanza 1.3 AT (old version) will kena screw or not...??


Best regards,

Jovis
http://jovis-for-rakyat.blogspot.com/

Anonymous said...

I just 'angan-angan' nak pakai Estima for my big family. Nampak gayanya terpaksa lupakan... Inilah nasib Rakyat Malaysia. Hv to stuck to the national car. Kenapa kerajaan tak fikir rakyat Malaysia yg ramai anak ni.... Berilah kemudahan kpd keluarga besar... Hope Kerajaan review dan beri keringanan utk MPV. Kereta besar utk keluarga besar adalah keperluan bukannya luxury.

Ahmad

monsterball said...

All those 4x4 owned by guys that are not earning at least RM6K per month...will either need to divorce the wife and abandon the children..or give up the vehicle.
Just wait few months....and see large areas storing so many "kereta tarik balik".
Now..some jokers are hoping their expensive vehicles are stolen by thieves......and attack the insurance company for compensations....hahahahahaha

Anonymous said...

Aiyah ! too many CARS already on the roads lah = air, noise pollution & somemore waste money on fuel subsidy, STOP ..STOP..
new cars production for one year !(hehehaha)

berto xxx said...

Nowadays it's very easy to have your own car. And that's an inch away because there are available car loans that are very helpful and also has a low interest. Thanks for posting me here. Berto

Azmi said...

BMW F650GS,
I luv this bike very much,
F**k BN,
Pakatan will form a govt soon..
hope this bike will become cheaper,
he..he...

[Mangkuk Hayun]

car loans said...

Thanks for that quick good and bad scenario. However, I hope it doesn't only apply to those two cars you mentioned because what I own is a Ford Lynx which I got through car loan financing. As for foreign cars, good thing I have sold my Honda before this jump. That may look like only 1% but I just can't be burdened much more.