Buying a car can be an important decision that you make and, more often than not, the biggest obstacle between you and that car you want is the finance required to purchase the car. This is when you tend to turn to a car loan for help. Car loans offer to finance 90% to 100% of the cost of the car and allow you to pay the money back to the bank in monthly instalments that can go on for a period as short as 36 months long or as long as 9 years. These loans are also made available for most cars produced in Malaysia and those that are imported. Sometimes it may happen that the car you are interested in is not a new one but an old car. Even in such cases banks can help with their car loans meant for used cars.
Car loans for used cars in Malaysia
Many banks offer car loans for used cars and each of the may offer a variety of features and benefits that can range from the amount that can be borrowed to the interest rates that are offered for these loans. Here are some of the loans on offer from various banks in Malaysia.
Affin Bank Conventional Hire Purchase
The used car loans offered by this bank are available for both cars made in Malaysia and those that are imported. It offers up to 90% of the cost of the car as a loan, along with an interest rate of up to 3% per annum.
Affin Islamic Hire Purchase-i
This is a car loan that works on the Islamic principle of car ijarah under which the bank purchases the car on your behalf and provides it to you for use. Once the loan for the car has been paid back, the bank transfers the can to your name. The maximum loan that can be availed using this facility is 90% of the cost of the car.
Al-Rajhi Automobile Financing-i
This car loan comes with a fast approval facility that allows the loan to be approved within 2 days. This too is a product of Islamic banking and levies no penalties if the loan is paid back early. It offers loans of up to 90%, of the value of the car, which can be paid back over a period of 9 years.
The used car loan offered by AmBank is known as the AmAUTOMate and offers car loans that can cover not only the price of the car but also the cost of motor insurance and road taxes that need to be paid.
AmBank Arif Hire Purchase-i
This loan also offers up to 90% of financing for the car and a repayment period that can last up to 9 years. It also offers an interest rate that can range from 3.4% to 3.6% per annum depending on the make of the car.
Hong Leong Auto Loan
The used auto loan offered by Hong Leong bank offers to finance up to 85% of the cost of the car. The repayment periods for these loans range from up to 84 months to 108 months and are decided based on the age of the car, with cars that are 6 to 10 years old getting the shorter repayment periods.
Alliance Hire Purchase
This is a conventional car loan that offers competitive interest rates, fast approvals and financing based on the age of the cars. The finance offered for used cars can range from 85% to 90% of the cost of the car, based on how old the car is. Even the repayment periods are determined by the age of the car.
Alliance Islamic Hire Purchase-i
This is a car loan that is compliant with the Shariah rules of Islamic banking. It works in the principle of hire purchase where the bank purchases the car on your behalf and transfers it to you once the payments are completed. The only condition for this loan is that car in question should not be older than 10 years old.
CIMB Hire Purchase
This car loan offered by CIMB will finance up to 90% of the cost of the used car and comes with repayment periods that can stretch up to 9 years. It also offers a choice of fixed and variable interest rates and is available to both salaried and self-employed individuals.
CIMB Hire Purchase-i
This is an Islamic car loan that can finance 90% of the price of the car you want to purchase. It also offers competitive profit rates and can be taken for a wide variety of cars ranging from SUVs to 4WD cars. It also offers a variety of options like online payments, cash deposits at ATMs, etc. when it comes to the monthly instalments.
Public Bank Aitab Hire Purchase-i
The Hire Purchase-I used car loan offered by Public Bank Aitab allows customers to avail car loans to finance used passenger or commercial vehicles. The loan amounts are determined by the age of the car, as is the duration of the repayment period, which can range from 36 months to 108 months. The amount extended under this loan can also range from 80% for the older cars to 90% for the newer ones.
Maybank Al-Ijarah Thumma Al-Bai
The Al-Ijarah Thumma Al-Bai is a loan that can be used to finance up to 85% of the cost of a used car. The repayment period for this loan is about 9 years, or 108 months. The loan is available to companies, partnerships, sole proprietorships etc. when the applicant for the loan is over the age of 18 years.
Maybank Hire Purchase
This is a loan that will finance up to 85% of the cost of a second hand vehicle. It also offers a repayment period of up to 9 years and is available to organisations as well as individuals who are above the age 18 years. The loan also works on the principle of hire purchase.
Maybank My First Car Loan
The My First Car Loan is a loan that is extended to anyone who is between 18 years and 30 years old and earns a minimum of RM 2,000 every month. The loans extended are to the tune of RM 100,000 and more depending on the monthly income.
MBSB Hire Purchase
The hire purchase loans offered by MBSB offer options of taking used car loans as both conventional and Islamic finance. They require a minimum monthly income of RM 1,500 and are available to anyone between the ages of 18 years and 60 years. The margin of finance maintained by them is 90% of the cost of the car.
Bank Muamalat Hire Purchase-i
This is a loan that will finance 90% of the cost of a used car as long as it is no more than 8 years old. The loan can be taken for a duration of 9 years and available to individuals and companies as well. The loan is compliant with the principles of Islamic banking and works on the concept of hire purchase.
As long as you are looking for a car that is not too old there are a log of car loans for used cars available in Malaysia.