The Malaysian Department of Insolvency has revealed that car loans are the second largest contributor to bankruptcy rates in 2022.
The report revealed that 14.24% of bankruptcy cases were caused by car loans while personal loans are the highest contributor of bankruptcy cases 42.24%.
Between 2018 to 2022, the department recorded a total of 7,072 bankruptcy cases caused by car loans where in 2022 alone, there were 441 cases.
That said, even though car loans have been the second biggest cause of bankruptcy since 2018, the number of cases have decreased steadily from 3,392 cases in 2018 to 441 cases in 2022.
On the same matter, the Malay Mail also reported that 73% of 1,077 Malaysians aged between 18 and 40 are in debt where 30% of loans taken were for vehicles, according to a survey conducted by local university USCI.