When it comes to buying a car, many opt to purchase with a car loan, also known as a hire purchase loan. The reason being is that car loans make car ownership much more affordable as you are able to repay the hefty price of the car in monthly payments.
While that sounds simple enough, there is one thing you should take note of – the loan’s interest rate. Here’s what you need to know about car loan interest rates and how you can get the lowest interest rate when you buy a quality used car with Carsome.
Ready to buy a car? Head to carsome.my/buy-car now to find your dream ride.
What Are Car Loan Interest Rates?
Anytime we take out a loan from the bank, we are essentially “borrowing” money and then paying it back in monthly instalments. In doing so, banks will charge an interest rate, which is basically the cost of taking a loan out from a bank – this is reflected as a percentage of the total loan amount.
However, varying banks give different interest rates and there are other factors you need to consider when choosing the right bank to take a car loan with (check out A Guide to Car Loans & Interest Rates), but the three main things that will determine your monthly repayment are the loan amount, loan period, and interest rate.
Also read: How are Car Loans and Interests Calculated?
The monthly repayment amount is calculated by multiplying the interest rate with your loan amount, and loan period (number of years). Therefore, the longer your loan period, the more you pay, while a lowered interest rate also lessens the amount. This is why many look for a bank that offers the lowest interest rate.
End the Year with the Best Deal: Super Low Interest Rate from Public Bank for Carsome Customers
So, we just talked about how a lower interest rate is much better because you do not have to fork too much – after all, the cost of a car itself is already heavy enough. Usually, car loan interest rates range between 2.5% to 3.6%.
But because we want car ownership to be much more affordable for you, we’ve partnered up with Public Bank Berhad to offer a super low interest rate for Carsome customers from as low as 0.99%*!
However, the interest rate offered will vary slightly, depending on the loan tenure and amount but one fact remains the same – it is still super low!
Here are the interest rates according to the loan period.
Loan Period (months)
|0.99% – 2.19%||2.68%||
For loan periods that are five years or less, Carsome customers are eligible to get super low rates depending on their loan amount, which are 0.99% for RM30,000 to RM40,000, 1.99% for RM40,001 to RM50,000, and 2.19% for RM50,001 and above, while six to seven years are at 2.68%, and eight to nine years are at 2.88%. This special promotion is valid until 31 December 2021.
Do take note that this special super low interest rate promotion is only valid for the purchase of Carsome Certified cars.
Buy a Carsome Certified Car for Peace of Mind
All Carsome Certified cars have passed our strict 175-point inspection to make sure it is free of major accidents, frame, or flood damage. Besides that, Carsome Certified cars are reconditioned and come with a Carsome Promise.
The Carsome Promise is our assurance for you to have peace of mind in your purchase. In fact, you can also test own a car, where you can test the car as your own and return it within five days for a full refund with our five-day money-back guarantee!
The five-day money-back guarantee is also part of our Carsome Promise to give you total peace of mind in your purchase.
This is our Carsome Promise to you:
- Five-day money-back guarantee: If you buy a used car from Carsome and you happen not to like it, you can return it back to us within five days to get your full amount back. No questions asked!
- Professional inspection: All Carsome cars go through an inspection that covers 175 points to ensure it is free from major accidents, frame, fire, and flood damage.
- One-year warranty: Our journey with you does not stop after you buy a car. We will give you an extended warranty to ensure your vehicle is covered in your first year.
- Fixed price: The price you see on the listing is the actual full price of the car with absolutely no hidden fees. We practice full transparency in our costs to ensure you know exactly what you are getting.
So, what are you waiting for? Browse for your Carsome Certified car today at carsome.my/buy-car.
*The Public Bank Berhad Super Low Interest Rates are subject to terms and conditions.
This article was originally published on 08/11/2021. It has been updated on 01/12/2021 to reflect Carsome’s latest promotional campaign and mechanics.
Jasmine would rather write about cars than actually drive one. Her writing journey started with various media houses, before venturing further into the world of content marketing.