[Mean]

Recently I was informed by a SA that a particular bank is able to give 9 yr loan at 2.50%. Today I found out after speaking to the loan officer that the calculation is BLR - X% which makes it equivalent to conventional flat rate of 2.50% (otherwise, the prevailing flat rate is hovering around 2.70%).

I was shocked and asked some of my friends about it. None of them have actually heard of housing-type loan for car purchases! Even the SA said he is not aware of this "gimmick" and insisted that the bank did not want to provide him with details.

To me it is dangerous to go the BLR - X% way for a car since BLR is very low nowadays, it can shoot up depending on economic conditions and as it is a car is a depreciating asset. You dun wanna get caught with a RM1500 instalment to service when it was only RM900 during signup.

What do you think?

[stinger82]

Recently I was informed by a SA that a particular bank is able to give 9 yr loan at 2.50%. Today I found out after speaking to the loan officer that the calculation is BLR - X% which makes it equivalent to conventional flat rate of 2.50% (otherwise, the prevailing flat rate is hovering around 2.70%).

I was shocked and asked some of my friends about it. None of them have actually heard of housing-type loan for car purchases! Even the SA said he is not aware of this "gimmick" and insisted that the bank did not want to provide him with details.

To me it is dangerous to go the BLR - X% way for a car since BLR is very low nowadays, it can shoot up depending on economic conditions and as it is a car is a depreciating asset. You dun wanna get caught with a RM1500 instalment to service when it was only RM900 during signup.

What do you think?

its by AMBANK

AmAuto Cruise – Variable Rate Financing

[KL3223]

There are pros and cons, esp if you get a windfall and wanted to settle early, the variable option will enable you to get back more cash. With the Rule 78, even if you settle early, you dont get back much.

Learn more about the AMBank product here:

http://www.ambank.co..._rate_financing

[Mean]

Hmmm...i'm kinda ignorant but anything subject to fluctuation worries me coz we are talking about a depreciating asset here..

[yapbrother]

Hmmm...i'm kinda ignorant but anything subject to fluctuation worries me coz we are talking about a depreciating asset here..

Bank rules subject to changes.

Cimb also good to do business.

[wanida]

Bank rules subject to changes.

Cimb also good to do business.

buying a car with variable rate is considered a risk due to BLR fluctuation..heard that OPR will increase soon which directly effect the BLR as well..

if you managed to secure hp rate less than 3%, better grab it..

[livina2011]

is it good?


so far only ambank offers it


got +ve & -ve?

what is tat

[evarts]

What do these short forms mean? BLR etc

[evarts]

What do these short forms mean? BLR etc

[reendaniel]

What do these short forms mean? BLR etc

BLR-base lending rate,
OPR-overnight polcy rate,