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Here’s a question that keeps Malaysian car buyers up at night: Should I torture myself with higher monthly payments for five years, or stretch it out to nine and risk paying more interest?

Financial expert Faiz Azmi (@financialfaiz) has been fielding this exact question on TikTok, and his answer might surprise you.

It’s not about the math – it’s about knowing yourself.

If you’re someone who struggles to save money consistently, just go with the 5-year loan, Faiz says bluntly.

Where the Math Gets Interesting

Pay it off quickly and avoid dragging out your debt.

Fair enough. But here’s where it gets interesting.

For those who can actually stick to a budget and invest the difference, the 9-year option might be the smarter play.

Using a top-spec Perodua Bezza as an example, Faiz breaks down the numbers:

5-year loan: RM880 monthly payments

9-year loan: RM584 monthly payments

The difference: RM296 every month

@financialfaiz Loan kereta 5 vs 9 Tahun? Selalu orang tertanya-tanya kan, antara dua ni, mana yang lagi berbaloi? Yang lagi berbaloi adalah…. #financialfaiz #loankereta #kereta #investment ♬ original sound – Financial Faiz

The RM296 Question

That RM296 difference is where things get spicy.

Imagine saving that RM296 every month for 9 years, with compound interest working in your favour, Faiz explains.

The growth could be substantial.

He’s not wrong.

Even without getting into specific investment returns, that’s over RM31,000 in raw savings over the loan period – money that could be working for you instead of sitting in a bank account earning peanuts.

Beyond Car Loans: The SSPN Play

Faiz also throws in a curveball: Malaysia’s National Education Savings Scheme (SSPN).

With 2024 dividends hitting 4.05% and tax deductions up to RM8,000 annually, it’s not a bad place to park that extra RM296.

If you’re in the 24% to 25% tax bracket, that RM8,000 deduction saves you about RM2,000 in taxes, he notes.

But this strategy only works if you actually invest or save that difference.

If you’re the type who sees extra money as shopping money, you’re better off with the 5-year plan.

The Personality-First Approach

If you can’t control your spending, don’t even think about the 9-year option, Faiz warns.

Just pay off the debt quickly and avoid the temptation to blow money.

The guy’s got a point. Financial flexibility is only valuable if you use it wisely.

It’s refreshingly honest advice in a world full of one-size-fits-all financial tips.

Sometimes the best financial strategy is the one that works with your personality, not against it.

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