Hire purchase financing are what many of us turn to when we’re looking to purchase a car, and in many cases, banks will offer a fixed rental rate that applies throughout the financing tenure. As such, you’ll pay a fixed monthly instalment for entirety of the financing tenure, which makes things rather rigid.
However, this form of auto financing isn’t the only option available to you. If you want a little flexibility and additional benefits when it comes to auto financing, RHB Islamic Bank offers just that with its Vehicle Financing-i plan that incorporates variable rates.
So, just what do you stand to gain with a variable rate financing? For starters, you’ll not have to deal with exit fees should you want to settle off the financing early. Of course, not everyone can dump a big chunk of money in one go, but you can still get your financing amount reduced when you do have some extra cash and want to pay more on top of the monthly instalment. This not only reduces your financing principal, but also allows you to save on profit charges, helping you save in the long run.
With rental rates of as low as 2.1% per annum (flat rate equivalent), RHB Vehicle Financing-i offers competitive rates for lower monthly instalments on a wide variety of new cars currently on sale in Malaysia.
RHB’s Vehicle Financing-i plan even includes special financing options with even more attractive rental rates when you purchase certain types of vehicles. These include:
Green Financing Package
Specially for customers looking to purchase a new eco-friendly car such as hybrids, plug-in hybrids or fully electric vehicles, the Green Financing Package offers a rental rate as low as 1.99% per annum (flat rate equivalent) and a maximum financing amount of RM500,000.
Volvo Car Finance Package
The Volvo Car Finance Package is another unique option available via the Vehicle Financing-i plan, specifically tailored for customers purchasing any Volvo model in Malaysia.
With no limit on the financing amount and rental rates that start from 1.88% per annum (flat rate equivalent), you’ll enjoy rates that are even lower than all current published fixed rate car financing!
The RHB Vehicle Financing-i plan, including the special Green Financing Package and Volvo Car Finance Package options, are all available with a financing tenure of up to nine years.
Now, what if you’re not looking to buy a new car and prefer a used car? Well, Vehicle Financing-i plan has something catered to that too:
Used Car Financing Package
RHB Islamic Bank’s Used Car Financing Package offers rental rates as low as 2.98% per annum (flat rate equivalent). Keep in mind that the financing tenure and margin of financing (MOF) offered are dependent on the age of the vehicle.
For a simple breakdown, cars aged under five years will be eligible for up to 9 years tenure and 90% MOF, while financing for cars aged between six to ten years are available for up to 7 years tenure with a maximum MOF of 85%.
With cars becoming even more modern and feature-packed to the benefit of the owner, so too should your vehicle financing plan. With RHB Vehicle Financing-i, you’re provided competitive rates and even greater flexibility to “unshackle” yourself from a traditional fixed rate car financing. Ready to try something new? Find out more about RHB Vehicle Financing-i, here.