FAQ : What should be my minimum salary?

We have been getting a lot of emails asking about the minimum basic salary that one should have in order to be eligible to apply for a car loan. The question looks simple but it is very hard to answer. The answer varies from one person to another. We actually need more inputs from our buyer before we can answer them. There are many things to consider, here we highlight some of the questions we would need to ask the buyer :

  1. What is your basic pay?
  2. What is your net pay after tax, sosco or epf?
  3. How long have you been working?
  4. Which company are you working at?
  5. What is your position in the company?
  6. What is your job status? Contract or Permanent?
  7. How much saving do you have?
  8. What is your monthly commitment? Personal loan, etc.
  9. Do you have a good record of paying your commitment?
  10. Do you have good cash flows in and out from your bank?
  11. How much down payment are you able to pay up front?
  12. Are you married or single?
  13. If you are married, how many kids do you have?
  14. Are you able to find a guarantor if necessary?
  15. Do you know that your salary should be at least RM 1,500 to buy a new Perodua Viva? RM 2,000 for Myvi?

These questions also reflect whether your Salesman is knowledgeable about this whole loan approval thingy. One of the big common mistakes made by the buyers is to simply pass the down payment before the loan approval. Please don’t do this? The loan approval is not given by them, please don’t get confused and simply trust their words (not all SA). Just pass the documents first and wait until you get the approval, then you can proceed to make the payment.