Car buyers to pay more due to interest rate hike
Sumber : The Star
By LESTER KONG
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Demand for cars set to drop
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Higher interest rates for national cars
Car hire purchase rates go up
By LESTER KONG
PETALING JAYA: Car buyers will have to pay more in monthly instalments now that hire purchare interest rates have gone up.
Just a few months ago, banks offered interest rates at around 2.5%. Now, the rates are between 3.4% and 4.7% for new cars.
Maybank hire purchase senior manager Nor Siah Othman said the bank had experienced a drop of about 40% in car loan applications in the past two months due to higher rates.
She also advised car owners to restructure their loans to stretch the monthly payments longer after a few years of repayments if they find it a burden to service their loans.
A freelance car salesman identified only as Teo said a buyer taking a RM42,000 loan would have to pay about RM54,000 over seven years - about RM4,000 more compared to the RM50,000 paid when the interest rate was 2.7%.
AmBank group public relations manager Norlidah Abd Rahman said not all banks charged as high as 4.3%.
“If the car bought now did not carry extended warranty under comprehensive insurance, the interest rate could be as low as 3.6% - 3.9% too,” she said.
A hire-purchase executive from a major bank here said the rates were not expected to fall any time soon as banks were anticipating Bank Negara to raise the interbank rate that would affect the interest rates for housing and car loans.
She added that the Hire Purchase Act did provide for a variable rate option for car loan holders based on the base lending rate used by banks mostly for housing loans.
“But most customers do not choose the variable rate; most people prefer the fixed interest rate because they are lower,” she said.
Kuala Lumpur and Selangor Car Dealers and Credit Companies Association president Khoo Kah Jin said interest rates for new cars were not that high at between 3.5% and 3.7%.
He said there was no reason for used car interest rates to be as high as 4.5% - 7.5%.
Khoo said the association had always pushed for the interest rates for used cars to be only 1% higher that of new cars.
Just a few months ago, banks offered interest rates at around 2.5%. Now, the rates are between 3.4% and 4.7% for new cars.Maybank hire purchase senior manager Nor Siah Othman said the bank had experienced a drop of about 40% in car loan applications in the past two months due to higher rates.
She also advised car owners to restructure their loans to stretch the monthly payments longer after a few years of repayments if they find it a burden to service their loans.
A freelance car salesman identified only as Teo said a buyer taking a RM42,000 loan would have to pay about RM54,000 over seven years - about RM4,000 more compared to the RM50,000 paid when the interest rate was 2.7%.
AmBank group public relations manager Norlidah Abd Rahman said not all banks charged as high as 4.3%.“If the car bought now did not carry extended warranty under comprehensive insurance, the interest rate could be as low as 3.6% - 3.9% too,” she said.
A hire-purchase executive from a major bank here said the rates were not expected to fall any time soon as banks were anticipating Bank Negara to raise the interbank rate that would affect the interest rates for housing and car loans.
She added that the Hire Purchase Act did provide for a variable rate option for car loan holders based on the base lending rate used by banks mostly for housing loans.
“But most customers do not choose the variable rate; most people prefer the fixed interest rate because they are lower,” she said.
Kuala Lumpur and Selangor Car Dealers and Credit Companies Association president Khoo Kah Jin said interest rates for new cars were not that high at between 3.5% and 3.7%.He said there was no reason for used car interest rates to be as high as 4.5% - 7.5%.
Khoo said the association had always pushed for the interest rates for used cars to be only 1% higher that of new cars.
Related story:
Demand for cars set to drop
More info:
Higher interest rates for national cars
Car hire purchase rates go up
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Car loan interest rates up
Press Digest by Kong See Hoh
PETALING JAYA (June 24, 2010): FOLLOWING Bank Negara Malaysia’s decision to raise the overnight policy rate (OPR) by 25 basis points to 2.5% last month, talk has been rife in the market that car loan interest rates will go up.
According to a report in China Press today, which was quoting a vehicle loan officer of a bank, the new interest rates are already in effect.
The officer, who was not named in the report, said that the new rates are based on engine capacities –below 1,400cc, 1,400cc to 1,800cc, and above 1,800cc -- and no longer categorised under national or non-national cars like before.
With the revision, rates are cheaper the bigger the car engine capacity.
The new rates are 3.4% (1,800cc), 3.5% (1,400cc-1,800cc) and 3.85% (below 1,400cc) for a five-year loan; 3.6% (1,800cc), 3.75% (1,400cc-1,800cc) and 4% (below 1,400cc) for loans of six or seven years; and 3.75% (1,800cc), 3.85% (1,400cc-1,800cc) and 4.1% (below 1,400cc) for loans of eight or nine years.
Prior to the hike, the rates were 3.75%, 3.9% and 4% respectively for loans of five, seven and nine years for national cars and 3.25%, 3.4% and 3.5% respectively for loans of five, seven and nine years for non-national cars.
The new rates for used cars are 4.25%, 4.4% and 4.85% for loans of five years, six-seven years and eight-nine years respectively.
As for reconditioned cars, the new rates are 3.65%, 3.8% and 4.1% respectively for loans of five years, six-seven years and eight-nine years.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad confirmed to China Press that MAA members have been informed of the rate hike.
She said the hike may affect sales volume in the near term but not in the long run as the quantum of increases were not much.
Inilah hasilnya;
http://www.utusan.com.my/utusan/info.asp?y=2010&dt=0709&pub=Utusan_Malaysia&sec=Terkini&pg=bt_28.htm
Utusan Malaysia Online : 09/07/2010
Najib cadang syarikat automotif negara bergabung
09/07/2010 11:00pm
KUALA LUMPUR 9 Julai - Perdana Menteri, Datuk Seri Najib Tun Razak mencadangkan agar syarikat-syarikat automotif dalam negara mempertimbangkan penggabungan sekiranya berlaku terlebih kapasiti dalam industri itu bagi terus berdaya maju dan selari dengan peredaran semasa.
Katanya, hanya syarikat yang berinovatif, yang sanggup melakukan perubahan dan mempunyai model perniagaan yang mapan sahaja akan benar-benar berjaya dalam abad ke-21 ini.
"Kalau sekiranya terlebih kapasiti merupakan satu daripada hambatan atau kekangan kepada syarikat-syarikat, apakah patut dilakukan proses untuk menggabungkan syarikat-syarikat automotif dalam negara kita supaya akan wujud syarikat yang lebih kuat, lebih besar dan lebih mampu lagi?,” katanya semasa berucap sempena makan malam gala sambutan ulang tahun ke-25 Proton di sini malam ini. - Bernama.