Malaysia's Car Loan Rules Changed in 2026: What Buyers Need to Know
Flat rates, the Rule of 78 and EIR can make the same car loan look very different. Here is what changed, what has not, and what to ask before signing.
6 July 2026
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For years, Malaysian car buyers have been accustomed to seeing rates such as 2.8 or 3 percent a year.
The number looks low. But a flat-rate car loan cannot be compared directly with a reducing-balance housing loan or other financing quoted on an effective basis. The calculations are different.
The Hire-Purchase (Amendment) Act 2026 took effect on 1 June 2026. It introduced important changes to how hire-purchase loans are explained and calculated. There is, however, a transition period until 31 March 2027. For now, a buyer may still encounter an offer using the old method or one from a provider that has moved to the new method early.
The most useful question in the showroom is therefore no longer only, "What is the monthly instalment?" It is also, "Is that a flat rate or an effective interest rate, and does this loan use the reducing-balance method?"
Why 3 Percent Does Not Necessarily Mean 3 Percent
Under a flat-rate calculation, interest is based on the original loan amount throughout the tenure, even as the amount owed falls each month.
Consider a RM50,000 loan over seven years at an illustrative flat rate of 3 percent a year.
Item
Amount
Loan amount
RM50,000
Flat-rate interest
RM10,500
Total repayment
RM60,500
Approximate monthly instalment
RM720
Approximate effective interest rate (EIR)
5.57% a year
The 5.57 percent EIR is not an extra charge. It is a more accurate annual expression of the same stream of repayments. This is why a "3 percent flat rate" cannot be compared directly with a "3 percent EIR".
The example also does not mean every new loan will carry a 5.57 percent EIR. The actual price depends on the amount, tenure, deposit, type of rate, provider and borrower profile. It simply shows why the label attached to the rate matters.
First, the reducing-balance method replaces the flat-rate formula. Interest is charged on the unpaid principal rather than repeatedly calculated from the original amount.
Second, the EIR is used to express the cost of financing more clearly. This gives buyers a more comparable measure across offers.
Third, the Rule of 78 is abolished for new financing under the new method. The old method allocated more interest to the early part of the loan. A borrower settling early could therefore find that the amount still owed remained relatively high.
What Has Not Changed Immediately
An effective date for legislation does not mean every bank's system changes on the same day.
Hire-purchase providers have until 31 March 2027 to complete the system changes needed for reducing-balance calculations and EIR pricing. Providers that are ready may adopt them earlier.
Two buyers entering showrooms in the same week could therefore receive documents using different methods. Do not assume a facility uses the new method simply because it was offered after 1 June 2026.
Ask the salesperson or provider to confirm in writing:
Is the displayed rate a flat rate or an EIR?
Is interest calculated on a reducing balance?
What is the total repayment over the full tenure?
How will an early settlement be calculated?
Will a New Loan Automatically Be Cheaper?
Not necessarily.
The new law makes pricing more transparent and early-settlement outcomes fairer. It does not guarantee that every provider will charge a lower rate or offer a smaller instalment.
A provider could price a new reducing-balance loan at an EIR that produces repayments similar to an older flat-rate loan. The difference is that the buyer sees the financing cost more clearly and interest moves with the amount still owed.
Compare three figures: the deposit, the EIR and the total repayment. A monthly instalment can still be made smaller by extending the tenure.
How This Fits Into the Full Cost of a Car
The loan is only one line in a car budget.
In ToM's worked example of the full cost of owning a Proton Saga in 2026, the illustrative instalment is RM583 but the complete monthly cost is about RM1,344 after fuel, tolls, insurance, road tax, servicing, parking, tyres and repairs.
More transparent loan rules help buyers understand the financing line. They do not remove the cost of using the car.
Before signing, test whether the total car cost remains comfortable if fuel or tolls rise. Then test whether repayments remain manageable if household income falls for several months.
A Checklist Before You Sign
Take this short list into the showroom:
Ask for the EIR, not only the rate printed most prominently.
Ask for the total repayment across the full tenure.
Confirm whether the provider has adopted reducing-balance calculations.
Compare offers using the same loan amount and tenure.
Ask how the early-settlement balance will be calculated.
Include insurance, fuel, tolls, servicing and parking in the budget.
Keep copies of the product disclosure sheet and signed agreement.
The 2026 changes do not make the car-buying decision simple. They give buyers better language for judging the debt.
Do not ask only whether RM720 fits next month's budget. Ask what the financing truly costs, how the balance falls and how much you will have paid when it ends.
Selama bertahun-tahun, pembeli kereta di Malaysia biasa melihat kadar seperti 2.8 atau 3 peratus setahun.
Angka itu kelihatan rendah. Namun kadar rata pinjaman kereta tidak boleh dibandingkan terus dengan kadar berasaskan baki berkurangan bagi pinjaman perumahan atau pembiayaan lain. Kedua-duanya mengira faedah dengan cara yang berbeza.
Akta Sewa Beli (Pindaan) 2026 mula berkuat kuasa pada 1 Jun 2026. Ia memperkenalkan perubahan penting kepada cara pinjaman sewa beli diterangkan dan dikira. Tetapi terdapat tempoh peralihan sehingga 31 Mac 2027. Pada masa ini, pembeli mungkin masih menerima tawaran di bawah kaedah lama atau daripada penyedia yang sudah beralih kepada kaedah baharu.
Jadi soalan terpenting di bilik pameran sekarang bukan sekadar, "Berapa ansuran sebulan?" Tanyakan juga, "Ini kadar rata atau EIR, dan adakah pinjaman ini menggunakan kaedah baki berkurangan?"
Mengapa Kadar 3 Peratus Tidak Semestinya 3 Peratus
Di bawah kaedah kadar rata, faedah dikira atas jumlah pinjaman asal bagi keseluruhan tempoh, walaupun baki hutang berkurang setiap bulan.
Ambil contoh pinjaman RM50,000 selama tujuh tahun pada kadar rata 3 peratus setahun.
Perkara
Jumlah
Jumlah pinjaman
RM50,000
Faedah kadar rata
RM10,500
Jumlah bayaran balik
RM60,500
Anggaran ansuran bulanan
RM720
Anggaran kadar faedah efektif (EIR)
5.57% setahun
EIR 5.57 peratus bukan caj tambahan. Ia ialah cara yang lebih tepat untuk menunjukkan kos tahunan bagi aliran pembayaran yang sama. Sebab itu "3 peratus kadar rata" tidak boleh dibandingkan terus dengan "3 peratus EIR".
Contoh ini juga tidak bermaksud setiap pinjaman baharu akan dikenakan 5.57 peratus. Harga sebenar bergantung pada jumlah, tempoh, deposit, jenis kadar, penyedia dan profil peminjam. Tujuan contoh ini ialah menunjukkan mengapa label kadar penting.
Pertama, kaedah baki berkurangan menggantikan formula kadar rata. Faedah dikenakan ke atas baki prinsipal yang masih belum dibayar, bukan berulang kali ke atas jumlah asal.
Kedua, EIR digunakan untuk menunjukkan kos pembiayaan dengan lebih jelas. Ini membantu pembeli membuat perbandingan yang lebih setara antara tawaran.
Ketiga, Kaedah 78 dimansuhkan untuk pinjaman baharu di bawah kaedah baharu. Kaedah lama membebankan lebih banyak faedah pada bahagian awal pinjaman. Akibatnya, peminjam yang menyelesaikan pinjaman lebih awal boleh mendapati baki yang perlu dibayar masih tinggi.
Apa yang Belum Berubah Serta-Merta
Tarikh kuat kuasa undang-undang bukan tarikh semua sistem bank berubah serentak.
Penyedia sewa beli diberi tempoh sehingga 31 Mac 2027 untuk menaik taraf sistem dan melaksanakan kaedah baki berkurangan serta paparan EIR. Penyedia yang bersedia boleh beralih lebih awal.
Ini bermakna dua pembeli yang masuk ke bilik pameran pada minggu yang sama mungkin menerima dokumen dengan kaedah yang berbeza. Jangan andaikan pinjaman menggunakan kaedah baharu hanya kerana tarikhnya selepas 1 Jun 2026.
Minta pegawai jualan atau bank mengesahkan secara bertulis:
1. Adakah kadar yang ditunjukkan kadar rata atau EIR? 2. Adakah faedah dikira menggunakan baki berkurangan? 3. Berapakah jumlah bayaran balik sepanjang tempoh penuh? 4. Bagaimanakah penyelesaian awal akan dikira?
Adakah Pinjaman Baharu Semestinya Lebih Murah?
Tidak semestinya.
Undang-undang baharu menjadikan harga lebih telus dan hasil penyelesaian awal lebih adil. Ia tidak menjamin bahawa setiap bank akan menawarkan kadar lebih rendah atau ansuran lebih kecil.
Sebuah bank boleh menawarkan pinjaman baharu pada EIR yang menghasilkan ansuran hampir sama dengan pinjaman lama. Perbezaannya ialah pembeli dapat melihat kos sebenar dengan lebih jelas, dan faedah bergerak bersama baki yang masih terhutang.
Sebab itu perbandingan perlu dibuat menggunakan tiga nombor: deposit, EIR dan jumlah bayaran balik. Ansuran bulanan sahaja masih boleh dikecilkan dengan memanjangkan tempoh pinjaman.
Bagaimana Ia Berkait Dengan Kos Memiliki Kereta
Pinjaman hanyalah satu baris dalam belanjawan kereta.
Dalam contoh ToM bagi kos penuh memiliki Proton Saga pada 2026, ansuran ilustratif ialah RM583 tetapi jumlah kos bulanan kira-kira RM1,344 selepas petrol, tol, insurans, cukai jalan, servis, parkir, tayar dan pembaikan diambil kira.
Peraturan pinjaman yang lebih telus membantu pembeli memahami bahagian pembiayaan. Ia tidak menghapuskan kos penggunaan kereta.
Sebelum menandatangani, uji dua perkara. Pertama, sama ada jumlah kos kereta masih selesa jika petrol atau tol meningkat. Kedua, sama ada anda mampu mengekalkan pembayaran jika pendapatan turun selama beberapa bulan.
Senarai Semak Sebelum Menandatangani
Bawa senarai ringkas ini ke bilik pameran:
Minta EIR, bukan hanya kadar yang dicetak paling besar.
Minta jumlah penuh yang akan dibayar sepanjang tempoh.
Sahkan sama ada penyedia sudah menggunakan baki berkurangan.
Bandingkan tawaran dengan jumlah pinjaman dan tempoh yang sama.
Tanya bagaimana baki penyelesaian awal dikira.
Masukkan insurans, petrol, tol, servis dan parkir dalam bajet.
Ambil salinan lembaran pendedahan produk dan perjanjian yang ditandatangani.
Perubahan 2026 tidak menjadikan keputusan membeli kereta mudah. Tetapi ia memberi pembeli bahasa yang lebih baik untuk menilai hutang.
Jangan hanya tanya sama ada RM720 muat dalam bajet bulan depan. Tanyakan berapa kos sebenar pinjaman, bagaimana baki berkurang, dan berapa yang akan dibayar sehingga tamat.
