Most car dealers, both new and second-hand, will offer finance, but if you need a loan to finance a private car purchase you will have to approach a bank. For each of these options you will usually be unable to get a loan until your work permit is approved, and some finance companies may ask to see three months’ payslips as proof of income, or a letter from your company confirming your position and salary. Strict regulations govern hire-purchase loans. The maximum loan amount is 90% of the value of the vehicle, with a maximum interest rate of 10%, fixed for the duration of the loan (a maximum of nine years).

Interest rates vary, and are better for new cars. Maybank’s interest rates hover between 2.5% and 4.75% on new car loans, and from 3.5% to 10% on used cars, depending on age and model. Promotional rates can be even lower, with Honda offering a rate of 1.38% in early 2008.

A limited number of banks offer independent car loans, but the best deals are usually through dealers.