Taking a loan to buy a car that is more than 10 years old

Discussion in 'Car Talk' started by couleur, Jul 4, 2019.

  1. couleur

    couleur Senior Member
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    Hi guys,

    I am looking to purchase a 2008 european sports car. The asking price is around RM210,000. I intend to put RM80,000 for the down payment and take RM130,000 loan. The car is with the dealership, I was quoted that if its a 3 year loan with Hong Leong Bank, it will be around 5.3% max and Public Bank can go for 4 years but at 6.X%

    Is it normal to pay such high interest for an old second hand car? 6.X% seems quite steep. I called another used car salesman to ask for more opinion, and he told me now only PBB will grand older car loans.

    Anyone has similar experience to share?
     
  2. gunnerzz

    gunnerzz 5 Year | Silver

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    Granting loan/financing (from the banks) for older cars will be a case to case basis. Each bank will have their own set of table to regulate or control such loan/financing which include criteria such as make&model, year make, market value, max loan tenure, interest rate, etc. These things keep on evolving thus to say its normal is difficult. During my banking time a loan package is changed almost every month.

    The Hong Leong and PBB interest rate is a great example. They both can accept old cars but the interest rate different is significant and the max tenure also vary. The fact that PBB offer higher interest for longer tenure is surprising as normally longer tenure grants lower rate. Then again as i mentioned earlier they work on their own set of criteria.

    Since u are able to fork out 80k as dp then u must be a high net customer for at least one bank. I suggest you go back to that bank, ask help from the manager (surely he or she knows u) for your loan. There might be a give and take involve but u can come out on top.

    During my banking time i manage to get super low rate for a non high net customer of my bank after the give and take negotiation. Then the custome becomes a high net cust at my bank.

    'give and take' is not a bribe,dun worry.
    Basically the bank wants something before they can CONSIDER to give something.
     
    vr2turbo and sweelt like this.
  3. vr2turbo

    vr2turbo 5 Year | Silver
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    Exactly, when I applied for loan last time for my Wira, they ask for specific model, seems certain model they don't loan....:dontknow:
     
  4. RENESIS VIII

    RENESIS VIII Senior Member
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    Yes, it doesn't matter if the car is an European sports car or not, but for PBB, any used car above around 7 years old will have 6.X amount of interest rate.

    Not many banks will grant older car loans and PBB is one of the few exceptions out there. CIMB is also another one.
     
  5. Izso

    Izso Boooooossst
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    What car are you looking at specifically? You must really like that car to be willing to loan at such cut-throat interest rates
     
  6. gunnerzz

    gunnerzz 5 Year | Silver

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    I play around in Mudah and i guess its an 08 Porsche 911 or Audi R8. More incline towards the 911.
     
  7. RENESIS VIII

    RENESIS VIII Senior Member
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    Not going to be those cars if is from PBB loan. Those are high risk models which requires head office special approval for the loan and even when they are new or in recond form, maximum financing will only be at 60%.

    There are a lot of European sports car that can fit into the description. It might be a SLK200, Z4 or TT....
     
  8. vr2turbo

    vr2turbo 5 Year | Silver
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    But those cars you mentioned for 2008 model not worth RM210k, right?
     
  9. RENESIS VIII

    RENESIS VIII Senior Member
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    I totally missed out the part on price. :rofl:

    My bad, my bad. Sorry.
     
  10. 6UE5t

    6UE5t Senior Member
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    It's common interest for old cars, especially European. What car is it?
     
  11. vr2turbo

    vr2turbo 5 Year | Silver
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    That is why bro. gunnerzz mentioned play around in mudah, means he search already......lol
     
  12. RENESIS VIII

    RENESIS VIII Senior Member
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    Means it is R8 or 911 those kind of cars. Definitely classified as high risk cars by bank HP department. A lot of factors like high depreciation is one of the reasons why they are classified as high risk.
     
  13. vr2turbo

    vr2turbo 5 Year | Silver
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    Yup, because in the event the loan not paid they need to sell the car and if depreciation is high they will not be able to get their money back.....lol
     
  14. RENESIS VIII

    RENESIS VIII Senior Member
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    Yeah. And if the car couldn't be auctioned off, it will be a dead stock for them with value depreciation.
     
  15. alcyon

    alcyon Active Member

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    Seems like top cigarette....
     

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