Processing

When buying a car, there are two main things that involved:

1)      Loan (if not cash)

2)      Insurance

LOAN

Fret not! Information listed here are for your references only, we at Perniagaan Motor Bintang Jaya will process everything on behalf of our customers.  

Unlike certain countries (for example: Singapore) where loans are usually provided by sole financing companies (and banks), loans are usually provided by commercial banks (finance department) in Malaysia. If you are applying for a loan: do you have what it takes, or do you have a guarantor? Documents needed for loan application varies, depending on the following characteristics:

1)      Individual car (Personal usage)

2)      Company car (Business usage)

3)      Guarantor

Documents needed for all types of application:

Individual

Employed Individuals: ·         Copy of your I.C and driving license ·         Latest three months' salary slip ·         Latest income tax return receipt  and EA Form if available ·         Copy of employer’s letter of confirmation ·         Car/Vehicle dealer's quotation (for new cars only) ·         Copy of registration card (for used cars only)

Self-Employed Individuals: ·         Copy of your I.C and driving license ·         Latest income tax return receipt ·         Copy of business license /permit ·         Copy of bank statement of savings or current account and business account passbook

Company (Company aka Sdn Bhd/Sole Proprietorship/Partnership/ Association /Co-op)

·         Copy of business registration, license or permit ·         Copy of Form D, Form 24, 44, or 49 ·         Financial Statement - Audited Accounts ·         Latest three months' bank statement ·         Latest three years' Form J and EA Form (if applicable) ·         Guarantor - at least one of the company's

Guarantor

If you do not have sufficient information/ documentation for loan processing, or if your income evidence is not sufficient to bear the burden of your car, or you may have high level of commitment (all determined by bank or credit company), you may opt to have a guarantor (he/she can be your family members, spouses, your children, and for foreigners residing in Malaysia, a local guarantor) for your loan. Information needed from a guarantor: ·         Copy of I.C and driving license ·         Latest three months' salary slip ·         Latest three years' Form J and EA Form ·         Copy of bank statement or savings passbook

Information provided serve as guideline only, flexibility and replacement with other acceptable documents are usually acceptable.

 

Loan duration & Interest rate:

Interest rates for loans are determined by tiers of loan duration, which are: 5 years, 7 years, and 9 years (maximum period of vehicle loan). A general guideline of loan duration, loan margin, and terms set for (types of) vehicles by a local bank is as below:

Passenger Cars, MPVs & 4x4 vehicles

	Age of Vehicle	Loan Margin	Maximum Loan Duration
New Vehicles	-	Up to 90%	Up to 108 months
Used Vehicles	Up to 5 years old	Up to 90%	Up to 108 months
	6 to 10 years old	Up to 85%	Up to 84 months

Vans

·         Goods carrying vans with GVW / BDM up to 2540kg.

·         Passenger carrying & Private registered vans.

	Age of Vehicle	Loan Margin	Maximum Loan Duration
New Vans	-	Up to 90%	Up to 108 months
Used Vans	Up to 5 years old	Up to 80%	Up to 84 months
	6 to 8 years old	Up to 75%	Up to 72 months

4x4 Commercial Pick-ups

	Age of Vehicle	Loan Margin	Maximum Loan Duration
New Vans	-	Up to 90%	Up to 108 months
Used Vans	Up to 5 years old	Up to 80%	Up to 84 months
	6 to 8 years old	Up to 75%	Up to 72 months

Other Commercial Vehicles

·         Goods carrying vans above 2540kg and up to 5000kg.

·         Pick-ups and lorries of up to 5000kg.

	Age of Vehicle	Loan Margin	Maximum Loan Duration
New Vehicles	-	Up to 80%	Up to 60 months
Used Vehicles	Up to 3 years old	Up to 70%	Up to 36 months

Interest rates:    

Interest rate for vehicle loan has been tricky in Malaysia. With constant fluctuation, no one can ever tell for sure what the rates are. There are many factors that determine the rates for each hirer, some of them are:

-          Amount of loan

-          CCRIS ( Central Credit Reference Information System) report

-          Vehicle’s age, cubic capacity (cc), place of assembled (CBU/CKD), condition (recond/new/used), etc.

Given the uncertainty and despicable prediction of such interest rate in this industry, we at Perniagaan Motor Bintang Jaya (PMBJ) have summarized two sets of interest rate range for both used and unregistered (reconditioned/recond imported) cars, based on the market interest rate given by different commercial banks:

-          Used cars: 3.6% - 4.0%*

-          Recond cars: 2.7% - 3.0%*

Interest rates for new and reconditioned cars vary depending on brands and models. Please consult your dealer (or us, if you are buying new cars through us).     *Time of update is 9 December 2010. Interest rates fluctuate constantly. For more accurate reading, full details of hirer are needed.

Banks:

We are certified panels of a list of financing banks, and our customers have the liberty to choose their own preferred loan provider. The list comprises of:

1. Public  Bank Bhd
2. CIMB Bank
3. AmIslamic Bank Berhad
4. Hong Leong Bank
5. RHB Bank
6. Maybank Bhd

INSURANCE:

In Malaysia, premiums are paid per annum. There are a few types of insurance coverage:

1.       Personal accident

a.       First party coverage

b.      Third party coverage

2.       Windscreen coverage

3.       Extended warranty (Engine and gearbox)

Here at PMBJ, we also act as certified insurance agent for the coverage of your vehicle. Our customers can choose their own insurance company for the said coverage. Some of the insurance companies in our list are:

1.       P&O

2.       Am Insurance

3.       Kurnia

4.       Mui

5.       Tokio Marine

6.       Berjaya

References:

• Ref 1
• Ref 2