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Car is one of the desired things that are vied by everyone.

These desires appeals us regardless taking account of our personal circumstances. We may wish to pursue our dream car even when our financial condition is not backing us for the whole cost of our desired car. So, to make our wish true, now the market has derived such a facility that help us pursue the car of our choice without taking much worry of our circumstances Before we buy a car, we should have some idea of what kind of car we can afford, but to get more specific, we need to answer ourselves certain questions. First, how much will a car really cost? People tend to focus on the purchase price and fail to honestly estimate the added costs, such as insurance, repairs, gas, and parking. Second, how important is buying a car in our overall plan? We may think a car is a necessity for us, but so is saving for retirement. We need to determine how high a priority owning a car is, compared to our other financial goals. Taking out a loan, for whatever reason, can be a daunting thought. There are so many companies out there who are willing to let us borrow money and many of them will do so without any worry about problems that we may have with the repayments. This is now down to us as the borrower and consumer. For this reason, we have to be sure that we are aware of all the problems that we might encounter along the way. It will also be good to know the best way to handle our loans during the course of the repayments. If we use a good loan payment calculator we should be able to get an idea of what is in store for us in the way of repayments, interest and the total amount paid. Things that we must know about the car loan is car loans make car ownership easy from being a luxury owned by the rich, cars have become a necessity even to the middle class of society. This dream of owning a car has become a reality with the availability of car loans. As there is no necessity to

make the entire payment at the time of purchasing, owning a car has been made easier. Car loans make up for a great section of the loans selling in the market with a rise in demand for cars. Second, is about the real cost of the loan.

When applying for a car loan, the most important thing that one should take into consideration is the rate of interest. There are two kinds of rates while getting a car loan are the rack rate and the actual rate. The rack rate is an estimated rate of interest set by the lender that is about 12-14%. But with the adjustments made between the lender and seller for cars financed through loans the rate of interest is bound to come down which is the actual rate. This benefits the buyer as the benefit is enjoyed at a lower cost. Thus, loan seekers should always check for the actual rate of interest to get the best deal on a car loan. Once we have entered all the information then the loan payment calculator will be able to offer us comparisons for a variety of loan plans. Some will even put these into a graph illustration for us so that we can see at a glance which option is going to be the best for us.. Use the calculator carefully with all the correct information and we could end up saving ourselves time, energy and most of all is the money.

My choice

I prefer to buy Proton Saga, manual vertion, in metallic colour. This is because the price of the car is not too expensive, which I can afford base on my salary. Moreover, the size of the car is suitable for me which is not too small and not too big. The size of a car can effect the fuel efficiency, the bigger the size of a car, the usage of fuel will be more. Nowadays the petrol price are keep going

increases, so I really have to budget it carefully for my monthly expenses. I have choose to get a car loan for 7 years, and Table 1 is the calculation for the car loan. Company/ Bank Type of car ( model ) Price Down payment Loan Interest Charge Monthly payment 7 years EON Seong Hoe Motors Sdn Bhd Proton Saga 1.3(M) Base Line (Metallic) RM 34,998.00 RM 3,598.00 RM 31,400 3.88% RM 475.34 Public Bank Proton Saga 1.3(M) Base Line (Metallic) RM 34,998.00 RM 4998.00 RM 30,000 3.89% RM 454.39 Maybank Proton Saga 1.3(M) Base Line (Metallic) RM 34,998.00 RM 4998.00 RM 30,000 3.89% RM 454.39 Table 1 \

Proton Saga 1.3 (M) Base Line, Metallic Colour. 1. EON Seong Hoe Motor Sdn Bhd Price : RM 34,998 Deposit : RM 3,598 Loan : RM 31,400 Loan = Price Deposit = RM 34,998 RM 3,598 = RM 31,400 Loan scheme 84 months (7 years) Interest Charge 3.88% Interest = Loan Interest Charge Years = RM 31, 400 3.88% 7 = RM 8,528.24 Monthly payment = (Loan + Interest) Months = (RM31, 400 + RM 8, 528.24) 84

= RM39, 928.24 84 = RM 475.34 Monthly Budget (Before the loan) ITEM TO BUDGET BUDGET PERCENTAGE/% KWSP RM 252.4 9.36 ASB RM 252.4 9.36 Parents RM 100 3.71 Insurance RM 300 11.12 House rent RM 500 18.54 Food RM 250 9.27 Cloths RM 80 2.96 Daily spending RM 200 7.41 Bills RM 250 9.27 Savings RM 512.4 19 TOTAL RM 2, 697.20 100

Monthly Budget (After the loan) ITEM TO BUDGET BUDGET PERCENTAGE/% KWSP RM 252.4 9.36 ASB RM 252.4 9.36 Parents RM 100 3.71 Insurance RM 300 11.12 House rent RM 500 18.54 Food RM 200 7.41 Cloths RM 70 2.59