Many people are confused and did not know how to apply car loan to buy a new or second hand car plus handling all the documents required for any car or vehicle purchase.

This article will tell some of the tips as a guide for you to buy a car for your own.

IMPORTANT BASIC SELF Photostat copy of:

• Identity Card
• Driving license
• 3 Month Latest Payslip
• EPF Statement
• 3 month Bank Statement
• Appointing Letter under any company

GUARANTOR Photostat copy of:

• Identity Card
• Driving license
• Month Latest Payslip
• 3 month Bank Statement

BUSINESS OWNER DOCUMENT Photostat Copy of:

• Company Registration Certificate 3 document
• 3 month Bank Statement

Additional Tips

Basically, those are the most important document that you must prepare before submitting any car purchase loan application. There are several cases which needs to be considered on buying a new car with car purchase loan from any bank.

If you are under 21 years old, you are most probably need a guarantor preferebly your parents or siblings. But if you have a very strong income more than 5 times the monthly payment as a fix employee of a stable company, there should be no problem in applying a car loan if you are under 21 years old.

If you have a business or company, with all your side income from your business in your business current bank account, you must provide business owner document which state that you have steady income to apply a loan for car purchase.

To apply for car loan, you must have a salary of at least 3 times the monthly payment of the car. If not, you still need a guarantor.

The deposit payment of any car purchase is usually 10% of the total car price. The bank only provide 90% loan unless you are a government staff and university graduated person.

Blacklisted person usually cannot apply for any car loan from any bank. However, some of the blacklisted government staff can apply the car loan.

Interest rate for a new car is usually from 2% to 4% per year and for second hand car interest rate is 4% to 8 % per year.

Loan can be applied for up to 9 years or even 12 years for new cars and 5 to 7 years for car more than 7 years old.

If you don't have a driving license, you can still apply for the car loan.

KWSP OR EPF STATEMENT can be printed at kwsp e-kiosk at your nearest KWSP branch. It opens from 730am to 430pm every weekdays. Just go to the machine, put your identity card mykad, put your thumnail for scanning and print your latest epf statement.

For Proton or Perodua Exchange programme where you can trade in your old cars to get RM5k discount of any Perodua or Proton New cars, bring your car there with the car grant, valid road tax and insurance policy. Usually they will take the car to check at Puspakom and the handling chargers for exchange programme is approximately RM250.

To trade in your old car, usually you need to bring the car for price evaluation by the car seller. Then all the process of trade in will be handled by them.

Make sure you have made a survey for the lowest interest rate you can get. Sometimes, bank will provide special corporate scheme for any employee of any company with the special interest rate. For example, if you are an employee of MAS, Maybank now have an offer of interest rate for Proton cars for as low as 3.15% per year compare to normal interest rate 3.75%.

The interest rate for Local cars like Proton and Perodua is usually higher than imported cars which is around 3%-4% compare to imported cars 2%-3% only per year.

Make a survey of the best car for you to choose on the internet so that you wont regret and make sure it is affordable and practical for you.

If possible, find a sales agent that you know well that can help you. If not, find the nearest car dealer so that you can easily keep contact with him. Don? ever buy from any car dealer that you don? know that have published an interesting offer on any advertisement board.

You can actually deal with the sales agent to have lowest downpayment by asking him to do ?ark up price?with the higher car spec price. For example, you want to buy new Saga but want to have less downpayment. So ask him to mark up by applying loan for new Saga with higher spec which is M-Line so that you will get a B-Line Saga with less downpayment. But you will pay for the monthly payment of M-Line because you have applied the loan of M-Line and cut your downpayment to lower price.

You can print your latest 3 month bank statement from online banking such as www.maybank2u.com.my. just login and go to your transaction history and print all latest 3 month transaction data. Don? forget to print the account details at the front page of your account page.

If you have a bank book, print the latest page and the front page. If you don? have bank book (buku akaun), just print from internet banking.

Ask the sales agent for a test drive first before making a decision on buying a new car. You also can ask almost everything with him and surely the sales agent will help you.

Source: kereta.info