Is now a good time to buy a car?
In 2022, Bank Negara has already raised interest rates four times, for a total of 1%. It is widely expected that Bank Negara will raise interest rates at least once in 2023, and possibly twice.
If Bank Negara raises the interest rate by 0.50% twice in 2023, car and home loan rates will rise. If you need to buy a car soon, now may be the best time to avoid having to make additional monthly car loan payments.
If the car loan you are applying for is a floating rate, buying a car this year or next year will make no difference because the floating rate of the car loan will be adjusted according to the Bank Negara’s overnight policy rate (OPR).
At the start of this year, the fixed interest rate for a car loan on an imported car worth RM800,000 was 2.20%. Following several interest rate increases, the car loan interest rate for the same car has risen to nearly 3%. In this case, the car owner must pay an additional RM640 in car loans.
Of course, it is not advisable to purchase a car if you do not have sufficient financial resources. If you don’t have enough financial capacity to buy a car, you won’t be able to afford the car loan in the end, and the borrower will be forced to live in poverty.
