Is the car loan rejection rate really as high as 60%?

Is the car loan rejection rate really as high as 60%?
Malaysia Automotive Institute (MAI) CEO Datuk Madani Sahari

Claim: The Malaysia Automotive Institute (MAI) CEO Datuk Madani Sahari said while the number of car booking remains high, the loan rejection rate is also high at 60%, affecting the overall car sales.

Datuk Madani Sahari

Claim:
The Malaysia Automotive Institute (MAI) CEO Datuk Madani Sahari said while the number of car booking remains high, the loan rejection rate is also high at 60%, affecting the overall car sales. He said the booking for the automotive industry is good, with Proton registering about 6,000 bookings, but the loan approval rate is low. Out of the 1,000 bookings, only 40% of the loan applications will be approved, bringing to a high rejection rate of 60%.
“Besides personal credit profile, the car brand is also a main factor in loan approval process. If a brand is good and does not need a lot of maintenance fee, then the borrower can use the money for instalment, or if a car has good second hand value, then the disposal sum can be used to offset the outstanding loan.”

Source: China Press, 13 October 2017 http://bit.ly/2zotluW

Fact:
Qualified car loan applicants continue to have access to financing with high approval rate by banks of 68% for the period January to September 2017. This does not include approvals by car manufacturers/dealers that provide financing like Toyota, Mercedes.

Sources:
Association of Banks in Malaysia, http://bit.ly/2znCBP6
Bank Negara Malaysia

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