Out of the 49,133 bankruptcy cases declared between 2018 and 2022, the Malaysian Department of Insolvency (MDI) reports that 14.39% were due to car loans.🚗
This totals 7,072 bankruptcy cases caused by car loans, making it the 2nd highest factor after personal loans.
However, the cause has been on the decline from 3,392 cases in 2018 to a mere 441 cases in 2022 as it falls to the fourth-highest contributor of bankruptcy in 2022.
By MDI's data (from July 2021 onwards), more than 60% of bankruptcy cases owe more than RM 100k which is about the price of a car commonly purchased by Malaysians with an inadvisable 9-year loan.
A local public university, UCSI, published its findings in a recent study: 73% of 1,077 Malaysians aged between 18 and 40 years old are in debt, with 30% of loans taken out for cars.
Buying a car is one of the financial goals that many have.
Typically, people will take out loans to enable their purchase. It requires great commitment and strict discipline to pay off any type of loan, so ensure to seek professional opinion from financial advisors to effectively manage your cash flows for a smoother loan repayment process.
If you want to know what kind of car you can afford, please click on the link below. We shall provide a brief assessment for you.