What’s the minimum salary to get a loan for the 2020 Nissan Almera?

Eric · Nov 04, 2020 01:06 PM

Ever since spyshots of the all-new Nissan Almera started surfacing late last year, the hype started building up for ETCM’s newest B-segment sedan.

Fast forward to November and ETCM has revealed prices of its highly-anticipated model.

In this article, we will take a closer look and see how much you need to make each month before you should apply for a loan to purchase the all-new Nissan Almera.

How much do I need to make?

Base spec model pictured

The all-new Nissan Almera has a starting price of RM 79,906 (on the road, without insurance), meaning that the monthly repayment is roughly RM 800 a month, factoring in a 2.27 percent interest rate with a 9-year loan.

Following the recommended guideline that you should not be paying more than 20 percent of your monthly salary for your car’s repayment, you’ll need to bring home a net salary of at least RM 4,000 a month. And that’s just the entry-level Almera 1.0 VL with two airbags.

If you want 6 airbags, then you’ll need to look at the VLP or VLT variants.

Considering that the Nissan Almera 1.0 VLP is priced from RM 85,715 (on the road, without insurance), the monthly repayment is roughly RM 860 a month. As such, you’ll need to have a minimum net salary of at least RM 4,300 a month.

As for the range-topping Almera 1.0 VLT (from RM 91,310, on the road, without insurance), the monthly repayment is roughly RM 920. You’ll need to have a minimum net salary of at least RM 4,600 a month if you’re eyeing the top-spec model.

We reckon that the best value-for-money variant is the mid-spec Almera 1.0 VLP, as it offers 6 airbags as well as Nissan’s Intelligent Mobility ADAS suite (FCW and AEB only). The mid-spec variant also offers Apple CarPlay connectivity via its 8.0-inch touchscreen infotainment system.

With the cost of insurance, maintenance, tyres, and other associated running costs factored in, your car-related expenses should not exceed 30 percent of your monthly salary.

That said, interest rates are always changing. Given our current situation, interest rates are very low, but you will still need to check with your respective banks for the latest rates. On top of that, the prices we quoted here are only valid until 31-December 2020, as it includes the Government’s Penjana sales tax exemption incentive.

Don't take the 9-year loan option

It doesn’t take a financial specialist to tell you this: Don’t take the 9-year loan option.

It’s a much wiser choice to opt for the shorter 5-year loan tenure.

For comparison, if you opt for a 5-year tenure for the Almera, the monthly repayment ranges from RM 1,300 (Almera 1.0 VL) to RM 1,530 (Almera 1.0 VLT). A bit more than the 9-year tenure, but there are benefits, as explained below.

Part of the reason why 9-year loans are not recommended, it’s because of interests. You’re paying between RM 14,700 to RM 16,800 in interest alone if you opt for the 9-year tenure. By opting for the shorter 5-year tenure, you’re paying between RM 8,100 to RM 9,300 in interests – considerably less than the 9-year tenure.

The problem with 9-year loans is that the tenure is so long, the value of your car is depreciating faster than your ability to pay off the loan.

You could also end up in a situation where if for whatever reason, you are forced to sell the car or claim total loss from your insurance, you will have to top up more money before you can settle your loan because the outstanding balance is more than your car's market value.

So keep that in mind before signing for a 9-year loan.