Answer first

A car-loan flat rate is calculated against original principal for every year. Use cash-flow comparison to understand its effective cost.

How to decide

First reproduce the flat-interest schedule. Then calculate an effective rate from the amount actually received and the dates and amounts of all payments; do not double a flat rate as a shortcut.

A practical process

When comparing two offers, keep vehicle price, deposit, term and included charges identical and use a reviewed cash-flow solver.

Limits and next step

The effective annual rate is intentionally withheld until independently computed and reviewed. Check the linked primary source and its captured date before making a commitment.

Malaysian worked example

Show the working

Inputs

  • RM72,000 financed
  • 3% flat
  • 7 years

Calculation

  1. interest = RM15,120
  2. monthly = RM87,120 ÷ 84 = RM1,037.14

Reviewed resultTotal scheduled repayment is RM87,120 before other charges.

The effective annual rate is intentionally withheld until independently computed and reviewed.

Verify

Sources and update record