Buyer's Guide

Budget

• Cap your monthly repayment at 15% of take-home pay.
• Add RM 3,000–6,000 for road tax + insurance on a typical RM 80k–120k car.
• Keep RM 2,000–3,000 in reserve for minor repairs in the first year.
• Down payment of 10% is standard; 20%+ reduces total interest significantly.

New vs Used vs Recon

• New: manufacturer warranty, zero mileage, but highest depreciation in year 1–2.
• Used (local): lower price, known maintenance history if buying from a dealer.
• Recon: imported, usually more features per ringgit — check JPJ compliance and conversion spec.
• Always ask for the grant (vehicle ownership card) and verify engine/chassis numbers match.

Financing

• Get pre-approved from 2–3 banks before visiting a dealer — use the best offer.
• Since 1 June 2026, hire purchase charges interest only on what you still owe, and banks must quote the EIR (effective interest rate). An old-style flat 2.4–3.5% is roughly 4.5–6.5% EIR. Compare EIR, never flat.
• Avoid extending tenure beyond 7 years — total interest balloons.
• Islamic hire-purchase (HP) vs conventional: functionally similar, choose based on your bank's rate.

What to Check Before Signing

• Confirm the car is not under a finance lien (check JPJ portal).
• Verify the accident history — ask for a PDRM report or inspection record.
• Read the sale & purchase agreement carefully before signing.
• Confirm all included accessories/services are written into the agreement.

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