Public Bank’s car loan calculator is a digital tool designed to assist potential car buyers in Malaysia to estimate their monthly car loan repayments. By inputting specific data such as the car price, down payment percentage, loan period, and interest rate, users can receive a calculated monthly repayment amount. This calculator is beneficial for those who are planning to finance a vehicle purchase through a loan, providing a clearer picture of the financial commitment involved.
Public Bank Auto Hire Purchase Calculation
How to Use the Car Loan Calculator?
To effectively use Public Bank’s car loan calculator, enter the total price of their desired vehicle in Malaysian Ringgit, followed by specifying their intended down payment as a percentage of the car price. They then select their preferred loan duration in years and input the applicable interest rate as a percentage. Upon completing these inputs, the calculator generates a comprehensive monthly repayment figure along with a detailed repayment schedule showing the breakdown of principal and interest over the loan period.
What Are the Benefits of Using a Car Loan Calculator?
Using a car loan calculator offers several advantages to prospective car buyers:
- It helps in planning your budget by providing an estimate of the monthly financial obligation.
- With different banks offering varying interest rates, the calculator can be used to compare which lender offers the best deal.
- It provides insights into how different loan periods and down payments affect the overall interest paid.
For example, if you are considering a car priced at RM100,000 with a down payment of 10% and an interest rate of 3.31% over a loan period of 9 years, the calculator will show how these factors influence your monthly payments.
What Are the Current Interest Rates for Car Loans?
Current car loan interest rates in Malaysia show variation among different financial institutions. Alliance Bank Hire Purchase offers rates at 3.14% per annum, while AmBank Arif Hire Purchase-i provides 3.05% per annum. CIMB Hire Purchase maintains rates at 3.25% per annum, with Public Bank Aitab Hire Purchase-i at 3.31% per annum and RHB Hire Purchase at 3.18% per annum. These rates fluctuate based on various factors including the vehicle’s condition (new or used), origin, and the borrower’s creditworthiness.
How to Calculate a Car Loan in Malaysia?
Taking an example of a new car priced at RM109,800 with a 10% down payment, the calculation begins by determining the applied loan amount after subtracting the down payment. The annual interest is then calculated based on the chosen rate, followed by computing the total interest for the entire loan period. The total loan amount combines the principal and interest, which is then divided by the loan tenure in months to determine the monthly repayment figure.
What Should I Look for When Applying for a Car Loan?
When considering a car loan application, 4 main factors deserve attention, which is the total cost of the loan, including both principal and interest. Interest rates should be compared across different financial institutions to secure the most competitive option. The down payment amount significantly influences the loan structure, with higher down payments potentially leading to more favorable interest rates. It’s also essential to understand the implications of loan default and potential vehicle repossession.
How Do Current Car Loan Interest Rates Compare?
The current car loan market shows different interest rate offerings from various banks. For example, Public Bank Aitab Hire Purchase-i provides rates ranging from 3.31% to 4.10% per annum for both new and used vehicles, with loan tenures extending from 7 to 9 years. CIMB Hire Purchase-i offers rates between 2.85% and 4.45% per annum, while BSN Hire Purchase presents an attractive rate of 2.55% per annum for new cars. These varying rates emphasize the importance of thorough market research and comparison before finalizing a car loan decision.