How car leasing works in Malaysia: down payment, monthly payment and balloon

Every estimate on this site is built from the same five numbers. On each car page you can change the down payment and the term.

• Car price: the listed price of the car.
• Down payment: what you pay up front. Each car has a minimum; the estimates on the home page and in the listings use 10%, or the car’s own minimum if it is higher.
• Term: how many months you pay. The estimates use 60 months.
• Interest: a flat rate charged on the amount financed for the whole term. It does not shrink as you pay.
• Balloon (residual): a lump sum set aside for the end of the term. It is not part of the monthly payments.

Take a car priced at RM 100,000, with RM 10,000 down, a term of 60 months, a balloon of 30% of the price (RM 30,000) and a flat rate of 3.5% a year.

The amount financed is RM 90,000. Flat interest over the term is RM 15,750. The monthly payment is RM 90,000 minus RM 30,000, plus RM 15,750, divided by 60 months: RM 1,262.50.

During the term you pay RM 10,000 up front and RM 1,262.50 a month for 60 months, RM 85,750 in all. The balloon of RM 30,000 is separate and falls due at the end. Try your own numbers with the lease calculator.

When the term ends, the balloon falls due. You have three choices.

• Pay it, from your own money.
• Refinance it, if you are approved to do so.
• Return the vehicle.

Refinancing is never guaranteed, so plan for the balloon from the start. Read more about the balloon.

1. Pick a car and adjust the down payment and term to see the estimate.
2. Create an account. You do not need one to browse cars or check an estimate.
3. Apply online with your NRIC, contact details, monthly income and employer. If you apply for a company, add its name and SSM registration number. See what to prepare.
4. We assess your application, and may ask for supporting documents such as payslips.
5. If you are approved, your agreement sets out the final payment and terms.

The estimate is indicative. It is not an offer, approval or commitment to lend. The final rate, fees and terms are set out in your agreement after approval and may differ from the estimate. Monthly figures exclude the balloon.