Record high Q1 for Proton's financing arm, 80% with 9-year loans

Cumulative sales of Proton in the first quarter of the year were the highest since March 2012 and has since created a knock-on effect for Proton Commerce, leading to a record number of loan disbursements.

In 2018, the company disbursed a total of 5,410 loans, which nearly doubled to 10,668 in 2019. The figure continued to climb to 14,189 loans in 2020, despite the disruptions caused by the Covid-19 pandemic.

Mooi Fi Phang, Chief Executive Officer, Proton Commerce said, “Our loan disbursement volume for Q1 this year has increased by 42.3% and we are confident of our volume growing even more in Q2. However, the hire-purchase market could face a tough second half of the year as the PENJANA sales tax incentive is scheduled to expire at the end of June so the industry could see a period of correction as market demand finds its natural level.”

Mooi also added that 80-percent of Proton Commerce’s customers opt for the 9-year hire purchase option.

WapCar's comments

A commendable achievement for Proton Commerce. However, we recommend buyers to be cautious of 9-year loans, as the loan tenure is too long and the value of your car is depreciating faster than your ability to pay off the loan. 

Also Read: If you need a 9-year loan, you can’t afford the car, and do understand Rule of 78