The 2026 Car Loan Advantage Check
Ensure you get the best deal. Compare the existing flat rate system to the new reducing balance model before you sign.
The Hire Purchase Loan in Malaysia is shifting from the current flat rate system to a reducing balance model. This change affects how interest is calculated, your monthly payments, your effective interest rate, and how much you save when settling early or making extra payments.
What You'll Learn
- •How flat rate loans work
- •NEW 2026!How reducing balance loan works
- •Side-by-side comparisons
- •Monthly repayment differences
- •Effective interest rates
- •Early settlement impact
- •Effects of extra payments
Make a Smarter Car-Buying Choice
Start by doing deep dive in either the flat rate model, the new reducing balance model or by comparing them. These Car Loan (Hire Purchase) Calculators will help you to understand your true loan cost and help you make a more informed decision when choosing the best hire purchase option for your next car.