A friend is planning to purchase a new car. He told me that he is going to take a loan of MYR30,000 and the interest rate for his car loan will be 3.5% per annum. The car is sold at about MYR50,000 and he is paying close to RM20,000 initial deposit. The rest will be paid by his finance company in installments over a period of five years.
Many people I know do not have too much money to spare as an initial deposit. These people usually just pay the minimum and then take a maximum loan of up to 90%. Some would even take the maximum length of NINE years. Nine years is too long a period for me. Three to five year period is bearable, though still not that short.
The best would be to pay by cash, but I also know that there are quite a few people who could afford to buy in cash but not doing so because they do not want to be disturbed by the IRS. Well, taxes are something that nobody could escape from!
Many people I know do not have too much money to spare as an initial deposit. These people usually just pay the minimum and then take a maximum loan of up to 90%. Some would even take the maximum length of NINE years. Nine years is too long a period for me. Three to five year period is bearable, though still not that short.
The best would be to pay by cash, but I also know that there are quite a few people who could afford to buy in cash but not doing so because they do not want to be disturbed by the IRS. Well, taxes are something that nobody could escape from!
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