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Malaysia Car Loan Calculator
Calculate the monthly instalment for a Malaysian car loan using the flat-rate hire purchase method.
| Car price | RM 60,000.00 |
| Down payment | - RM 6,000.00 |
| Loan amount | RM 54,000.00 |
| Flat interest rate | 3.00% p.a. |
| Loan tenure | 9 years (108 months) |
| Total interest | RM 14,580.00 |
| Total payable | RM 68,580.00 |
Malaysian car loans (hire purchase) use the flat-rate method - interest is charged on the full loan amount for the whole tenure.
How car loans work in Malaysia
Car loans in Malaysia are hire purchase agreements that use the flat-rate method. Unlike a home loan, interest is charged on the full original loan amount for the entire tenure - it does not shrink as you pay the balance down.
That is why the flat rate looks low (often 2.5%-3.5%) while the effective rate is almost double. A 3% flat rate over 9 years works out to roughly 5.3% effective.
What affects your instalment
- Down payment - usually at least 10% of the car price. A bigger down payment means a smaller loan.
- Tenure - up to 9 years. A longer tenure lowers the monthly payment but raises total interest.
- Interest rate - depends on new vs used, the bank, and your credit profile.
Frequently asked questions
What is the difference between flat rate and effective rate?
What is the maximum car loan tenure in Malaysia?
How much down payment do I need?
Can I settle a car loan early?
Figures are estimates for general guidance only, not financial advice. Rates verified 2026. Always confirm with the relevant authority before making a decision.