Needed to Refinance a Car Loan

Refinancing Your Current Auto Loan

What is auto refinancing? Refinancing a car is a similar concept as refinancing a home. When you refinance a car loan, you pay off your current car loan and replace it with a refinance car loan with a new lender at a different (generally lower) rate. If you have purchased a car and were given a loan with a high interest rate, you may want to think about refinancing your auto loan for a lower interest rate. Refinancing your existing car loan can save you money each month by lowering your car payments.

Is an Appraisal Needed to Refinance a Car Loan?

Some people think an appraisal is required to refinance their auto loan. This is not true. When you refinance your home, you do need to have an appraisal since the loan is based on the equity in the home. With auto refinancing, the loan is based on how much money you need to pay off your current car loan, not on the value of the car.

Bad Credit Auto Loan Refinance

If you had credit problems, refinancing a car loan might be a good option for you. You may have accepted an auto loan with a high interest rate because of a bad credit history. But, if you have maintained a stable job since you bought the car and have been making consistent, on time payments for a year or more, you may be able to lower your current interest rate. It's worth looking into it.

SOURCE: HSBC Auto Finance Article

Car Refinance Comparison in Malaysia

1. AmBank Finance Your Car For Up To 9 Years


Features AmBank Hire Purchase Arif Hire Purchase-i
Minimum Age 18 years & above
Minimum Income A monthly income of at least three times the amount of the monthly instalment
Financing Maximum 90% of invoice price or AmBank's valuation, whichever is lower.
Repayment Period Up to 9 years

Our Attractive Financing Packages

2. MAYBANK : Hire Purchase Hire purchase involves the sales of goods by the dealer to the financier (bank), which becomes the owner, in return for an immediate payment, which is the cash price less deposits paid by the consumer (hirer). The ownership of the goods passed to the hirer upon completion of the full instalment payment. Terms of Financing Type of Vehicle Margin of Finance Repayment Period New passenger car, 4WD, MPV and SUV (CBU and CKD units) Maximum of 90% of seller's invoice Maximum of 108 months Secondhand passenger car, 4WD, MPV and SUV Maximum of 85% of seller's invoice Maximum of 108 months Unregistered Reconditioned (imported) vehicle Maximum of 90% of seller's invoice Maximum of 108 months * All terms and conditions are subject to the financing guidelines by Bank Negara Malaysia and Maybank.

3. BANK ISLAM

Hire Purchase-i

Hire Purchase-i is a banking facility based on the Shariah contract of Ijarah Thumma Bai´ which allows you to hire and subsequently purchase assets from Bank Islam. It is a form of rental for usage of equipment at a fixed agreed amount during the financing tenure.