Car Financing Help ( I Am A Complete Newbie )

[Juelz]

few quick questions , someone needs to help me out :regular_smile: , i have no
experience but i would like to purchase a car soon


1. whats the difference between going to a bank personally for a car loan and
going through dealer ? like the ones we see in motortrader ads

2. whats the difference between a hire purchase and a car loan ?

3. how do i know whats the maximum duration of a loan for a certain car ?
what does it depend on ? the condition ? the year the car is registered ?


4. if lets say i would like to buy a car for rm30k , can i apply for a car loan
for rm40k ? my point here is i would like to use the balance to do up the car .


5. if a were to go to a bank and apply for a car loan , how long does the
whole process take before i can finally receive my car if the loan is
approved ?


6. if i were to opt for a second hand car is it possible to get up to 90%
financing ? if not what does margin of financing depend on ?

 

[huakenny]

1. whats the difference between going to a bank personally for a car loan and
going through dealer ? like the ones we see in motortrader ads[/B]

go bank urself...u gotta do all the things urself lo....thru dealer...he do for u lo...

2. whats the difference between a hire purchase and a car loan ?

if not mistaken..hire purchase is agreement between u n bank....u get loan from them....so gota sign agreement...car loan is the sum of money u borrow from them

3. how do i know whats the maximum duration of a loan for a certain car ?
what does it depend on ? the condition ? the year the car is registered ?
dependes on year n condition....normlay hv to see ur car (if not mistaken)


4. if lets say i would like to buy a car for rm30k , can i apply for a car loan
for rm40k ? my point here is i would like to use the balance to do up the car .

u can do it if ur car market price is higher than ur purchasing price....but tis is very rare happen unless u get the car from someone damn kaw rish tat sel u at lowest price....hehe


5. if a were to go to a bank and apply for a car loan , how long does the
whole process take before i can finally receive my car if the loan is
approved ?

tis one cant confirm..depends on ur documents..completed documents faster....otherwise....slowly wait


6. if i were to opt for a second hand car is it possible to get up to 90%
financing ? if not what does margin of financing depend on ?

how much loan if depends on urself.....ur income.....bla bla bla....etc

 

[soulseaker]

1. whats the difference between going to a bank personally for a car loan and
going through dealer ? like the ones we see in motortrader ads
If you have the time i advised you to get the loan yourself. If you go through dealer, you need to pay for their service.

There is another different is that normally finance company normally dealt with agent then personally. But I prefer to do it myself so that i can source around. Last time i get cheaper rate then the one dealer get for me.

Another advice, even it is the same finance company, different branch will quote you different package in terms of interest rate, margin of finance and years of finance.

2. whats the difference between a hire purchase and a car loan ?
Actually hire purchase is the term for a type of loan and car loan is the loan for your car. Normally you can only get hire purchase loan for your car.


3. how do i know whats the maximum duration of a loan for a certain car ?
what does it depend on ? the condition ? the year the car is registered ?
It depends on the year of your car, type/model of car, bank/branch policy, age group, your income and financial background.
If you are age 24 and below, you will need a guarantor for your loan.


4. if lets say i would like to buy a car for rm30k , can i apply for a car loan
for rm40k ? my point here is i would like to use the balance to do up the car .
Very rarely you can do this, all finance will have the market price of your car. Normally the finance company will borrow the margin of finance of the market value or your purchase price (wichever is lower). SO normally sales people will mark up the purchase price to as close to the bank market value as possible.
You also wont get the balance caused the finance company will only issue the cheque to the seller name.


5. if a were to go to a bank and apply for a car loan , how long does the
whole process take before i can finally receive my car if the loan is
approved ?
They will take around two three working days to process, if your loan is approved, normally the bank will issue the cheque to the seller in 1 working day.

6. if i were to opt for a second hand car is it possible to get up to 90%
financing ? if not what does margin of financing depend on ?
It depends on the year of your car, type/model of car, bank/branch policy, age group, your income and financial background.

YOu can get the details of the car you interested and approached the finance company to inquirer.

 

[Juelz]

hello

soulseaker thank you so much for your help ,looks like the way i see it i think its better to go through a dealer because if you look at the motortrader ads , alot of dealers dont require you to pay any d/payment and the monthly payments are
very low . also can anyone tell me roughly a satria year 97-98 , good condition
acc free , 1.6 , low mileage .....what will be the max loan duration ? (my documents are pretty strong ) ps: i have no commitments .

 

[soulseaker]

hello

soulseaker thank you so much for your help ,looks like the way i see it i think its better to go through a dealer because if you look at the motortrader ads , alot of dealers dont require you to pay any d/payment and the monthly payments are
very low . also can anyone tell me roughly a satria year 97-98 , good condition
acc free , 1.6 , low mileage .....what will be the max loan duration ? (my documents are pretty strong ) ps: i have no commitments .

I advised you to make sure that the dealer really didnt ask for any other charges other then your on the road. You can ask the dealer first, then go to the bank and ask about their offer, normally the the staff also will know how to do this thing, they will tell you the max loan that they can offer. You also need to prepared around RM 1000(at least 700+) if let said your car is around RM24K for your car insurance if you dont have any NCD.