Car Loan Calculator
Planning to buy a new or used car? This tool helps you quickly estimate your monthly car loan instalments. Simply enter the total amount you wish to finance, your downpayment, the interest rate, and the loan period to get an idea of your potential financial commitment. Plan your car purchase with better insight today!
How does this car loan calculator work?
This calculator uses a standard formula based on simple interest to estimate your monthly car loan payments. You input the total amount of the vehicle, your downpayment, the annual interest rate offered by the bank, and the number of years you plan to take the loan for. Based on these figures, it calculates your estimated fixed monthly instalment. Remember, this is an estimate; the final amount may vary slightly depending on the bank’s specific terms and conditions.
What are typical car loan interest rates in Malaysia?
Car loan interest rates in Malaysia can vary based on several factors, including whether the car is new or used, the bank or financial institution, the loan amount, the loan tenure, and your creditworthiness (e.g., CCRIS/CTOS score). As of early 2025, rates for new cars typically range from around 2.2% to 3.5% per annum, while used car rates might be slightly higher, often from 3.0% to 4.5% or more.
What main factors affect my car loan approval and the monthly payment amount in Malaysia?
Several factors influence your car loan approval and how much you’ll pay monthly:
- Loan Approval: Your credit history (CCRIS and CTOS reports), income level, debt service ratio (DSR), age, employment stability, and the downpayment amount you can provide are key. Banks assess these to determine your ability to repay the loan.
- Monthly Payment Amount: This is primarily determined by the total loan principal (vehicle price minus your downpayment), the interest rate applied, and the length of the loan tenure. A longer tenure will result in lower monthly payments but means you’ll pay more interest over the life of the loan.
Can I use this calculator for both new and used car loans in Malaysia?
Yes, you can use this calculator for estimating payments for both new and used car loans. The calculation principle for the loan instalment remains the same. However, be aware that interest rates for used cars are often higher than for new cars in Malaysia, and the maximum loan tenure might also be shorter for older used vehicles. Ensure you input the correct interest rate and loan period applicable to your specific situation (new or used car) to get the most accurate estimate.
