Car on lease for recently arrived expat in KL

Friends, Please reply

Impossible to get bank loan without a good credit record inside Malaysia*.
For leasing there can be similar problems but some companies may be willing with surety.
Check Carlist, Mudah for available vehicles.

*eg a credit card requires a FD to be set up to max credit limit.

Appreciate your reply.

So I can't able to buy a new car if I am willing to give up to 25 % of cost upfront?

Thanks

Check with the car showroom. They have different financing arrangements available. It used to be min. 30% of purchase price required. But financial services area for foreigners is constantly changing.

Thanks for reply

Check depreciation -v- rental as well. Loan periods tend to be very short for cars, even as short as 3 yrs.

Dealers are not the same, so its hard to give a blanket answer in here. Usually a dealer who is keen to make a sale will find the way to help you but others rely on you to solve a bank loan problem so that they can simply be presented the funds.

You didnt say if you are coming here for work or what. To get a bank loan you need a bank account and for that you need a work visa (or whatever kind of visa some particular bank might allow because they too are different.)

While not speaking for any or all dealers, the normal way someone will by a new car with a loan will be that they have a steady job and the maximum allowed payment on a loan will be a percentage of the salary. On a mere promise to pay the loan with no verifiable income, how would you expect anyone to give you a loan? Well, that would be up to a dealer to solve, using non-traditional lending methods such as loan sharks and other types of corrupt lenders who wont be nice to you should you miss a payment. Also, sometimes the dealer will offer its own loan but the rates will be much higher than a bank. Down payment is unknown, its up to the individual making the loan.

In the leasing world, the qualifications are the same as buying but sometimes the down payments are less and the monthly payment much more. In leasing, you have the base amortized payment plus the expected depreciation over the term to arrive at a final monthly payment. When you are buying, you suffer your own depreciation when you later sell but when leasing, the lender refuses to suffer depreciation so they include it in your payment on the rationale you had use of the car, not them, and therefore amortize the depreciation monthly. The only difference between leasing and buying is who and how depreciation is handled. On a 3-year lease, with $50,000 expected depreciation in that time, that amount is in the payment so that on a $160,000 car, now worth $110,000, the dealer can straight sell it for $110,000 at no loss. When buying, you suffer the $50,000 in one big hit when you sell.

As a side note to this, most people buy in order to have the lowest monthly payment because depreciation isnt in the payment, just principal and interest. SADLY for them, they didnt set aside any money to account for the declining value and then when it comes time to sell, the car is worth less than their loan and thats called "upside down." Then they scurry to figure out how to pay a loan balance of $18,000 when the car is only worth $13,000. Because they failed to set aside depreciation money in a savings account or something, they try very hard to pass that problem to a buyer in the form of a higher selling price and of course a smart person will not fall for it.

Which SUV to buy? Any of the Japanese or Korean brands. See Carlist.com as they list new car prices here. The higher the price of the SUV, the higher the depreciation, as in BMWs, and therefore much higher payments to account for it.

When you arrive KL and after you have looked at carlist.com, just find a dealer location online and go talk to them. Good luck!

Why you write so much la? Mostly trash

Thanks for your reply,

Yes, I have a steady job on a valid work visa with a sufficient capability to repay car loan up to RM 4K/ month very easily.

My question is here what I heard that as a new expat without a credit history in the country, its difficult to get a loan. - Question is here - How to get qualified to get a car loan, guess paying high upfront deposit up to 30% of the car cost.

Thanks