Car Loan Guide for First-Time Buyers in Malaysia
Learn how Malaysian banks calculate car loans, the documents you need, and tips to improve approval chances.
Car Loan Guide for First-Time Buyers in Malaysia
Buying your first car in Malaysia can be exciting, but navigating the financing process can feel overwhelming. This guide breaks down everything you need to know about car loans, from eligibility criteria to tips for getting approved with the best rates.
How Car Loans Work in Malaysia
Most car loans in Malaysia are structured as hire purchase agreements. The bank pays the seller, and you repay the bank in monthly instalments with interest. Loan tenure depends on the age of the vehicle:
- New cars: Up to 9 years
- Used cars: 15 - car age = maximum years allowed (minimum 3 years)
What You Need to Apply
- Copy of IC
- Latest 3 months’ salary slip
- EPF statement or EA form
- Bank statements (for self-employed applicants)
Tips for First-Time Buyers
- Keep monthly instalments within 30–40% of your net income.
- Aim for a car with lower maintenance and insurance costs if you are starting out.
- Use your inventory search to compare options before applying.
Example Calculation
If you are buying a 6-year-old car, maximum loan tenure is 15 - 6 = 9 years (but capped at 9). If it is a 10-year-old car, 15 - 10 = 5 years loan possible.
Disclaimer: This guide is for general informational purposes only. Intercontinental Motors Sdn Bhd is not liable for any discrepancies in bank policies or approval outcomes.
About the Author
This guide is brought to you by the team of automotive experts at Intercontinental Motors. With over 30 years of experience, we are committed to providing valuable insights to help you make informed decisions. For more, learn about our story.