A Guide to Used Car Financing in Malaysia

You've found the perfect used car in Kuala Lumpur, but how do you pay for it? For most buyers, this means securing a car loan. The financing process for a used car is slightly different from a new one. This guide will walk you through what you need to know to get your loan approved smoothly.

1. Understanding Interest Rates

Interest rates for used cars are typically higher than for new cars, and they are calculated as a flat rate. The rate you get will depend on the age of the vehicle, your credit score, the loan amount, and the loan tenure. Generally, cars under 5 years old secure better rates. It pays to shop around, but reputable dealerships like Intercontinentalmotor.com have partnerships with multiple banks to help you find the most competitive rate for your used car in Malaysia.

2. Loan Margin and Tenure

Banks will typically finance up to 90% of the car's value (the margin of finance). The maximum loan tenure for a used car is usually capped, often bringing the total age of the car plus the loan period to around 12-13 years. For example, a 5-year-old car might be eligible for a loan of up to 7 years.

3. Required Documents

To apply for a loan for a used car in Selangor, you'll generally need to provide the following documents:

• Salaried Employee:
  - Copy of NRIC and Driving License
  - 3 months' latest payslips
  - 3 months' latest bank statements
  - Latest EPF statement
• Self-Employed:
  - Copy of NRIC and Driving License
  - Business Registration Certificate (SSM)
  - 6 months' latest company bank statements
  - Latest income tax filing (Form B)

4. The Application Process

When you buy from a dealer in Petaling Jaya or Kota Damansara, they will handle the loan application for you. This is a major advantage, as they can submit your application to multiple banks at once, increasing your chances of approval and finding the best terms. The dealer handles the paperwork, making the process seamless for the buyer.

Conclusion

Financing a used car doesn't have to be complicated. By understanding the key terms and preparing your documents, you can streamline the process. At Intercontinentalmotor.com, we assist our customers every step of the way, from choosing their car to securing the best financing deal available. Visit us to find your dream car today.