Report: Most Proton, Perodua Car Buyers Are On 9-Year Loans

Latest research by AmInvestment Bank reportedly reveal that up to 80% of Proton and Perodua buyers elect to finance their cars over a nine-year period, more if they're allowed to.

According to a research report recently published by AmInvestment Bank, about 80% of Proton and Perodua car buyers choose loan terms of up to nine years. The research revealed that some even choose to extend the period further if given the option.

Due to their low maintenance requirements and reasonable prices, Proton and Perodua cars are the best options for individuals in the moderate-to-lower income bracket. For people in these income brackets, the cars are also viewed as consumer necessities rather than luxury items.

Additionally, AmInvestment Bank reports that a high percentage of auto loan applications and approvals are currently being made, particularly for the Perodua Myvi.

The same research found a high percentage of auto loan applications and approvals for the Perodua Myvi specifically at this current juncture.

The same report goes on further to state that there is a high demand for this car, with deliveries of the vehicle being delayed well into the previous year. This is because buyers are rushing to buy because they have to have the car and are worried that future increases in the Official Permit Rate will result in higher ownership costs. The used car market appears to be unaffected. According to the research firm, purchases of used vehicles remain high at the moment because some manufacturers experienced supply chain issues in mid-2023. The supply chain issue reduces production, leading to excess demand in the used car segment.

Would you finance something like the Proton X90, priced between RM123,800 and RM152,800, over a nine-year period? 

"Sales are strong, but primarily in the affordable car segment, particularly those manufactured in Japan and domestically.

"Moreover, the current trend also shows buyers avoiding purchases of cars with large engine capacities. This may be due to concerns about fuel subsidy rationalisation," it said.

As for BEVs, AmInvestment Bank's research notes that most high-income elites opt to finance their vehicles over a five-year term. Some even perform cash purchases.

"Of all the EVs (electric vehicles) purchased, customers opt for loan periods of five years, and some even pay cash, which is a common practice among the elite T1 group.

"Furthermore, various tax exemptions such as excise duties, sales tax, and road tax make BEVs a worthwhile investment for the elite," it added.