Car Refinance Calculator Malaysia 2026
Calculate how much you can save by refinancing your car loan
🚗Your Current Car Loan
Check mudah.my or carlist.my for market value
Current Monthly Payment
RM 1,291.67
🏦New Refinance Loan
Current market rates: 3.5% - 5.5% p.a.
Max tenure depends on car age (car must be <10 years at loan end)
Include Cash Out
Get extra cash based on your car equity
💰Refinancing Costs
Penalty amount: RM 1,000
Your Monthly Savings
RM 271
Save RM 3,250 per year
Loan Comparison
| Current | Refinance | Savings | |
|---|---|---|---|
| Monthly Payment | RM 1,292 | RM 1,021 | +RM 271 |
| Interest Rate | 6.0% | 4.5% | -1.5% |
| Loan Tenure | 4 years | 5 years | - |
| Total Interest | RM 12,000 | RM 11,250 | +RM 750 |
| Total Payment | RM 62,000 | RM 61,250 | +RM 750 |
Break-even Analysis
Recommendation
Car refinancing is RECOMMENDED! You'll recover costs in 5 months.
Get the Best Car Refinance Rates
Compare offers from 10+ banks. Free, no obligation.
Car Refinance Interest Rates in Malaysia 2026
| Lender | Interest Rate | Notes |
|---|---|---|
| Toyota Capital | 3.5% - 4.5% p.a. | Toyota cars only |
| Public Bank | 3.5% - 4.8% p.a. | |
| Maybank | 3.5% - 5.0% p.a. | Based on car age & credit |
| RHB | 3.6% - 5.2% p.a. | |
| CIMB | 3.8% - 5.5% p.a. | |
| Hong Leong | 3.8% - 5.5% p.a. | |
| AmBank | 4.0% - 6.0% p.a. | |
| Bank Rakyat | 4.2% - 5.8% p.a. | |
| AEON Credit | 5.0% - 8.0% p.a. | Easier approval |
* Rates are indicative and subject to credit assessment. January 2026
What is Car Refinancing?
Car refinancing means replacing your existing car loan with a new loan at better terms. You can:
- Get a lower interest rate
- Extend tenure to reduce monthly payment
- Cash out your car equity
Note: Malaysian car loans use FLAT RATE, not reducing balance like housing loans. This means your interest is calculated on the full loan amount throughout the tenure.
When Should You Refinance Your Car Loan?
Consider Refinancing If:
- • Current rate is high (6%+ when market is 4%)
- • Credit score improved = better rates
- • Need lower monthly payments
- • Need cash from car equity
Avoid Refinancing If:
- • Car is too old (>7 years)
- • Remaining loan is small (<RM15,000)
- • Planning to sell the car soon
- • Break-even period is too long
Car Refinance vs Personal Loan
| Factor | Car Refinance | Personal Loan |
|---|---|---|
| Interest rate | 3.5% - 6% | 6% - 18% |
| Collateral | Car as security | Unsecured |
| Max amount | Based on car value | RM10k - RM150k |
| Tenure | Up to 7-9 years | 1-7 years |
| Approval | Need car valuation | Faster |
Requirements for Car Refinancing
Eligibility
- ✓Malaysian citizen / PR
- ✓Age 21-65
- ✓Minimum income RM2,000/month
- ✓Car less than 10 years old (at end of tenure)
- ✓Car registered under your name
Documents Required
- ✓MyKad
- ✓Latest 3 months salary slip
- ✓Latest 3 months bank statement
- ✓Car registration card (geran)
- ✓Current loan statement
Step-by-Step Car Refinance Process
Check your car value
Use mudah.my or carlist.my to find market value
Get current loan statement
Know your outstanding balance & penalty
Compare refinance rates
Apply to 2-3 banks for best offer
Car inspection
Bank will value your car
Loan approval
Usually 3-7 working days
Settlement & disbursement
Bank pays off old loan - Total timeline: 2-4 weeks
Frequently Asked Questions
What is the maximum car age for refinancing?
Most banks require car to be less than 10 years old at the end of loan tenure. So a 5-year old car can get max 5-year refinance.
Can I refinance a car under hire purchase?
Yes, most car loans in Malaysia are hire purchase. The new bank will settle your existing HP.
What is early settlement penalty?
Usually 2-3% of outstanding loan. Some banks waive this for refinancing to them.
Can I refinance and get cash out?
Yes, if your car value is higher than your outstanding loan. You can borrow the difference.
Will refinancing affect my credit score?
There will be a new credit check, but minimal impact if you pay on time.
What if my car loan is already low interest?
Refinancing may not be worth it. Use our calculator to check break-even period.
Jimat RM 271/bulan
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