What is a used car loan?
A used car loan is a type of loan offered by banks or financial institutions to purchase a used car. It is required to be repaid along with interest over a predetermined period of time.
What is the eligibility criteria for used car finance?
To apply for a used car loan, one must need to fulfil the following eligibility criteria - - Malaysian citizenship
- 18 years old and above
- Must have a valid driving licence
- Employed for the last 6 months
- A guarantor is required in case of a non-Malaysian applicant or to prove affordability in meeting repayment obligations
What documents are required for a used car loan application?
Following documents are required to submit with a used car loan application - - A copy of NRIC
- A copy of the driving licence
- Latest salary slips/vouchers (last 1-6 months as per the loan package)
- Latest EA or EPF Statement
- Latest 3 to 6-months bank statement
- Latest BE Form/EA Form with a tax payment receipt
What are the advantages of taking a used car loan?
Taking a used car loan is a great way to get the car you want without paying the high price. The advantages also include lower interest rates, lower monthly payments, and less depreciation in value.
What are the important things to check when purchasing a used car?
You should check the car’s registration, history, and mileage. Also ensure that the car is not damaged and stolen.
What is the interest rate on a used car loan?
The interest rate on used car loans varies from one bank to another. Depending on the type of used car (national or foreign). It ranges from 2% to 8% per annum.
What is the tenure of a used car loan?
The tenure varies from 3 years (36 months) to 9 years (108 months), depending on the vehicle’s age.
What is the minimum down payment required for a used car loan?
Most banks in Malaysia offer up to a 90% margin of financing, which implies that at least 10% down payment is required to be made for a used car loan.
Which Malaysian bank offers the best used car loan?
Different banks offer competitive used car loan interest rates. You can compare the deals and opt for the one that suits you best.
What are the general requirements for applying for a used car loan?
First, know the type of car you want and can afford, then check your credit score, compare interest rates offered by different banks and apply with all supporting documents.
How long does the used car loan application take to process?
The used car loan application usually takes 3 to 5 days to process.
What is the maximum age of a used car valid for financing?
The maximum age is 9 years starting from the year of manufacture. That means, a bank does not finance any vehicle older than 10 years usually.
Can I settle my used car loan early?
Yes, you can settle your used car loan early. Some lenders also offer a rebate on the same, which can be the refund of the term charges for the unused tenure.
Can I change the monthly instalment amount in case of financial difficulties?
The change in the monthly instalment amount depends on the specific bank or financial institution's discretion from which you have taken the used car loan.
Can Zigwheels help me with my application for a used car loan?
You can use Zigwheels’s Used Car Loan calculator to estimate your monthly amounts. Also, to start processing your used car loan application, you can fill out the form available on the website. The approval of the loan depends on the lending institution.
