Taking a loan to buy a car that is more than 10 years old

couleur

Known Member
Senior Member
Mar 20, 2008
98
32
1,518
Hi guys,

I am looking to purchase a 2008 european sports car. The asking price is around RM210,000. I intend to put RM80,000 for the down payment and take RM130,000 loan. The car is with the dealership, I was quoted that if its a 3 year loan with Hong Leong Bank, it will be around 5.3% max and Public Bank can go for 4 years but at 6.X%

Is it normal to pay such high interest for an old second hand car? 6.X% seems quite steep. I called another used car salesman to ask for more opinion, and he told me now only PBB will grand older car loans.

Anyone has similar experience to share?
 

gunnerzz

2,000 RPM
Jul 3, 2014
2,109
695
713
38
Melaka
Granting loan/financing (from the banks) for older cars will be a case to case basis. Each bank will have their own set of table to regulate or control such loan/financing which include criteria such as make&model, year make, market value, max loan tenure, interest rate, etc. These things keep on evolving thus to say its normal is difficult. During my banking time a loan package is changed almost every month.

The Hong Leong and PBB interest rate is a great example. They both can accept old cars but the interest rate different is significant and the max tenure also vary. The fact that PBB offer higher interest for longer tenure is surprising as normally longer tenure grants lower rate. Then again as i mentioned earlier they work on their own set of criteria.

Since u are able to fork out 80k as dp then u must be a high net customer for at least one bank. I suggest you go back to that bank, ask help from the manager (surely he or she knows u) for your loan. There might be a give and take involve but u can come out on top.

During my banking time i manage to get super low rate for a non high net customer of my bank after the give and take negotiation. Then the custome becomes a high net cust at my bank.

'give and take' is not a bribe,dun worry.
Basically the bank wants something before they can CONSIDER to give something.
 
  • Like
Reactions: vr2turbo and sweelt

vr2turbo

Beyond 20,000 RPM!
Helmet Clan
Moderator
May 11, 2010
29,998
8,385
1,713
Petaling Jaya
Exactly, when I applied for loan last time for my Wira, they ask for specific model, seems certain model they don't loan....:dontknow:
 

RENESIS VIII

7,000 RPM
Senior Member
Jun 13, 2012
7,063
950
1,713
Ipoh
Hi guys,

I am looking to purchase a 2008 european sports car. The asking price is around RM210,000. I intend to put RM80,000 for the down payment and take RM130,000 loan. The car is with the dealership, I was quoted that if its a 3 year loan with Hong Leong Bank, it will be around 5.3% max and Public Bank can go for 4 years but at 6.X%

Is it normal to pay such high interest for an old second hand car? 6.X% seems quite steep. I called another used car salesman to ask for more opinion, and he told me now only PBB will grand older car loans.

Anyone has similar experience to share?
Yes, it doesn't matter if the car is an European sports car or not, but for PBB, any used car above around 7 years old will have 6.X amount of interest rate.

Not many banks will grant older car loans and PBB is one of the few exceptions out there. CIMB is also another one.
 

Izso

NA NA NA NA NA
Helmet Clan
Moderator
Mar 28, 2004
15,389
6,411
5,213
KL
Hi guys,

I am looking to purchase a 2008 european sports car. The asking price is around RM210,000. I intend to put RM80,000 for the down payment and take RM130,000 loan. The car is with the dealership, I was quoted that if its a 3 year loan with Hong Leong Bank, it will be around 5.3% max and Public Bank can go for 4 years but at 6.X%

Is it normal to pay such high interest for an old second hand car? 6.X% seems quite steep. I called another used car salesman to ask for more opinion, and he told me now only PBB will grand older car loans.

Anyone has similar experience to share?
What car are you looking at specifically? You must really like that car to be willing to loan at such cut-throat interest rates
 

gunnerzz

2,000 RPM
Jul 3, 2014
2,109
695
713
38
Melaka
What car are you looking at specifically? You must really like that car to be willing to loan at such cut-throat interest rates
I play around in Mudah and i guess its an 08 Porsche 911 or Audi R8. More incline towards the 911.
 

RENESIS VIII

7,000 RPM
Senior Member
Jun 13, 2012
7,063
950
1,713
Ipoh
I play around in Mudah and i guess its an 08 Porsche 911 or Audi R8. More incline towards the 911.
Not going to be those cars if is from PBB loan. Those are high risk models which requires head office special approval for the loan and even when they are new or in recond form, maximum financing will only be at 60%.

There are a lot of European sports car that can fit into the description. It might be a SLK200, Z4 or TT....
 

vr2turbo

Beyond 20,000 RPM!
Helmet Clan
Moderator
May 11, 2010
29,998
8,385
1,713
Petaling Jaya
Not going to be those cars if is from PBB loan. Those are high risk models which requires head office special approval for the loan and even when they are new or in recond form, maximum financing will only be at 60%.

There are a lot of European sports car that can fit into the description. It might be a SLK200, Z4 or TT....
But those cars you mentioned for 2008 model not worth RM210k, right?
 

RENESIS VIII

7,000 RPM
Senior Member
Jun 13, 2012
7,063
950
1,713
Ipoh
That is why bro. gunnerzz mentioned play around in mudah, means he search already......lol
Means it is R8 or 911 those kind of cars. Definitely classified as high risk cars by bank HP department. A lot of factors like high depreciation is one of the reasons why they are classified as high risk.
 

vr2turbo

Beyond 20,000 RPM!
Helmet Clan
Moderator
May 11, 2010
29,998
8,385
1,713
Petaling Jaya
Means it is R8 or 911 those kind of cars. Definitely classified as high risk cars by bank HP department. A lot of factors like high depreciation is one of the reasons why they are classified as high risk.
Yup, because in the event the loan not paid they need to sell the car and if depreciation is high they will not be able to get their money back.....lol
 

RENESIS VIII

7,000 RPM
Senior Member
Jun 13, 2012
7,063
950
1,713
Ipoh
Yup, because in the event the loan not paid they need to sell the car and if depreciation is high they will not be able to get their money back.....lol
Yeah. And if the car couldn't be auctioned off, it will be a dead stock for them with value depreciation.
 

Random Post Every 5 Minutes

Hi,

I own satria neo 2006, my coolant leaked at the upper part of the radiator (fibre/plastic) area only.
Right now, I'm just sealed it with silicone sealant as temporarily action. I've surveyed 5-6 workshops. Each mechanics told me different story and give several options.

Mechanic 1,2: Change the upper part only because my ori radiator is still in good condition, & he said taiwan/local made radiator are thin and he advice me to avoid using local/taiwan made. If want new, buy ori...
Ask a question, start a discussion or post something for sale!
Post thread

Online now

Enjoying Zerotohundred?

Log-in for an ad-less experience