A.

CAR LOAN
I have just finished my degree in UTEM and found a job. In order to facilitate my
commute to the workplace, I have decided to buy a car. Each car will be compared with 2
banks (2 banks for new car, 2 banks for used car).

1. Find an advertisement of a new car and a used car with the price. Attach the advertisement
in the appendix.
Appendix 1 and 2

2. Find the bank interest rate for the new car and used car. Attach the screenshots in the
appendix.
Appendix 3 and 4

3. Calculate the monthly payment of your loan for each car. Show the calculation of the
monthly payment and present them in a table for comparison.

NEW CAR :

Car Info

Brand : Proton Model : Saga FLX Variant : 1.3

Pricing

On The Deposit Loan

Road : RM 38,361.00 (10%) : RM 3,836.10 Amount : RM 34,524.90
Price

Bank Details

Bank Loan Interest

Name : CIMB Bank Period : 9 Years Rate : 2.85%

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 Monthly FV = PV(1+ rt)
Payment = 34,524.9[1+(0.0285)(9)]
= 43,380.54

𝐹𝑉
R=
12𝑡
43,380.54
= = 401.67
12(9)

NEW CAR :

Car Info

Brand : Proton Model : Saga FLX Variant : 1.3

Pricing

On The Deposit Loan

Road : RM 38,361.00 (10%) : RM 3,836.10 Amount : RM 34,524.90
Price

Bank Details

Bank Loan Interest

Name : Maybank Period : 9 Years Rate : 3.40%

Monthly FV = PV(1+ rt)

Payment = 34,524.9[1+(0.034)(9)]
= 45,089.52

𝐹𝑉
R=
12𝑡
45,089.52
= = 417.50
12(9)

2
USED CAR :

Car Info

Brand : Proton Model : Saga FLX Variant : 1.3

Pricing

On The Deposit Loan

Road : RM 15,800 (10%) : RM 1,580 Amount : RM 14,220
Price

Bank Details

Bank Loan Interest

Name : CIMB Bank Period : 9 Years Rate : 4.45%

Monthly FV = PV(1+ rt)

Payment = 14,220[1+(0.0445)(9)]
= 19,915.0

𝐹𝑉
R=
12𝑡
19,915
= = 184.4
12(9)

3
USED CAR :

Car Info

Brand : Proton Model : Saga FLX Variant : 1.3

Pricing

On The Deposit Loan

Road : RM 15,800 (10%) : RM 1,580 Amount : RM 14,220
Price

Bank Details

Bank Loan Interest

Name : Maybank Period : 9 Years Rate : 4.25%

Monthly FV = PV(1+ rt)

Payment = 14,220[1+(0.0425)(9)]
= 19,659.15

𝐹𝑉
R=
12𝑡
19,659.15
= = 182.03
12(9)

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 COMPARISON

INTEREST PERIOD TOTAL MONTHLY

CAR BANK
RATE (%) (YEARS) LOAN PAYMENT

CIMB Bank 2.85 9 43,380.54 401.67

NEW
MAYBANK 3.40 9 45,089.52 417.50

CIMB Bank 4.45 9 19,915.00 184.40

USED
MAYBANK 4.25 9 19,659.15 182.03

Based on the comparison, I would choose to buy a new car using CIMB Bank because
the interest rate is the lowest among the others which are 2.85% and the total loan also cheaper
than Maybank. Based on the program about financial management that I went, the suitable car
loan for the first time buyer for a car is below fifty thousand ringgit and the monthly payment
should be below five hundred ringgit.

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B. PTPTN

Once I have secured a job, I would like to start to pay for my PTPTN loan. At the
moment, the loan is subject to 3.00% per annum compounded monthly. However, there is
an option to migrate your loan to Ujrah loan. Assuming I get a full loan of RM31,500 for
the whole period of my degree to be paid in 15 years’ period.

1. Identify the type and the interest rate for Ujrah loan.

2. Calculate the total repayment amount for both interest rate. Show the necessary working
steps

Loan Type Loan Amount Interest Rate Type Of Interest Total Payment

S = P(1+r)∧ 𝑛𝑡
Conventional Compounded 0.03
RM 31,500 3.00% = 31,500 (1+ )∧ 180
Loan Monthly 12
= RM 49,374.10
𝐹𝑉 = 𝑃𝑉(1 + 𝑟𝑡)

Ujrah Loan RM 31,500 1.00% Simple Interest = 31500(1+0.01)(15)]

= RM 36225.00

3. Which rate gives you lower total payment amount?

- Ujrah Loan because ujrah loan monthly payment are lower than conventional loan.

Monthly Payment Ujrah Loan

Loan + Interst Rate Ujrah =Total Loan Ujrah

RM 31500 + RM 4725 = RM 36225

𝐹𝑉
R=
12𝑡

36225
=
12(15)

=RM 201.25

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C. MONTHLY COMMITMENT

The monthly payment of my loans are called monthly liability commitment. Some
financial experts recommend that the total monthly liability commitment should not be
more than 60% of my monthly income.

1. Find a job advertisement with salary stated. Attached the advertisement in the appendix.
Appendix 5

2. Based on the salary from the job you found and your monthly liability commitment consists
of the car loan and the PTPTN loan (using Ujrah), how many percent of your salary is used
to serve your loan?

Car loan (New) + PTPTN ujrah

Monthly
RM 401.67 + RM201.25
Liability
=RM 602.92
% Of Your Current liability / total salary
Liability 602.92
X 100 = 17.22%
Commitment 3500

3. What is your balance after deducting your liability commitment?

Salary – current liability

Balance
RM 3500 – RM 602.92
= RM 2897.08

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D. SUMMARY AND SUGGESTION

1. Is the salary you received enough for you to buy a new car?
Car Loan (New) + PTPTN
Monthly
RM 401.67 + RM 201.25
Payment
=RM 602.92
% Of Your Current Liability / Total Salary
Liability 602.92
Commitment X 100 = 17.22%
3500

- After doing the calculation, our monthly salary which is RM3500 were enough to
buy a new car because it is below 60% of my liability commitment.

2. What other monthly expenses that you think need to be consider?

Food + Utility Bill + Apparel
Monthly RM 300 + RM 150 + RM 200
Expenses =RM650
RM 3500 – RM 650
=RM 2850

- Other monthly expenses that we think need to be consider are food expenses,
utility bill, and apparel

3. Saving is important in our life. Suggest any saving / investment method you can find
nowadays.

Saving monthly Salary – KWSP - SOCSO

RM 3500 – RM 385 – RM 17.50
=RM 3,097.5

- Other saving/investment method that can be find nowadays are Kumpulan Wang
Simpanan Pekerja (KWSP).

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 4. What did you learn from this assignment? Any suggestion to do the assignment
differently?

 Based on this assignment work course, we get new knowledge on how to buy
a car and calculate the loan and compare the car that we can afford according to our
salary.

 We suggest that we can calculate the comparison between expenses on public

transportation and private vehicle.

E. REFERENCE AND APPENDIX

A. List the website that you used

1. http://www.mybestcardealer.com/2012/10/09/proton-saga-flx-price-list-2012/
2. https://www.mudah.my/2014+Proton+SAGA+1+3+FLX+EXECUTIVE+M+MANUAL
3. https://www.cimbbank.com.my/content/cimbconsumer/en/personal/products/loans/car-
loans/hire-purchase.html
4. https://ringgitplus.com/en/car-loan/Maybank-Hire-Purchase.html
5. https://www.indeed.com.my/jobs?q=Accounting&advn=527304221359830&vjk=4140df07c
6da418f

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 B. Attach the printscreen of car price and bank’s interest rate in the appendix and highlight
your choice.
Please attach the marking form on the last page.

APPENDIX 1

10
APPENDEIX 2

APPENDEIX 3

11
APPENDEIX 4

APPENDEIX 5

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 DISTRIBUTION OF TASK

NAME TASK

MUHAMAD FAID AMMAR BIN

FAHRURRAZI
A AND B
B061910426

MUHAMMAD IRFAN HAKIMI BIN

AZLI
A AND B
B061910290

MUHAMMAD AZMIN HAFIZ BIN ABD

RAHIM
C AND D
B061910470

AHMAD IZZAT BIN EZANEE

C AND D
B061910129

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 MARKING FORM

SECTION ITEMS MARKS SUBTOTAL CRITERIA

Cover page & Table of
2
content
FORMAT Computerized 1 According to respective
5
(5M) lecturer
Neatness 1
On time submission 1
CONTENT (40M)

1 Bank 3 marks
(1 mark each for correct
A 1. Calculation 12 substitution, total amount,
(15M) 15 monthly amount)
CAR LOAN
Decision (car, bank) 2m,
2. Decision & Justification 3 Justification 1m
correct substitution 1 total
1. Conventional Rate 2 amount 1
Interest 1, correct
B2
2. Ujrah Rate 3 substitution 1, total
(8M) 8
amount 1
PTPTN
Lower rate 1, monthly
3. Interest 3 interest 2 (correct
substitution 1, answer 1)
Maximum liability 1, total
C 1. Current Liability 3 current liability 1, % of
(5M) liability 1
5
Monthly
Commitment 2. Balance 2 substitution 1, balance 1

D
According to respective
(5M) Summary/Suggestion 5 5
lecturer
Conclusion

Minimum 4
E 1. Reference 2 websites/reference
(7M) 7
Total of 5 appendix (car 2,
Reference 2. Appendix 5 bank 2, job 1)

TOTAL 45

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