Flat rate versus real rate
Malaysian car loans are quoted as a flat rate. Interest is worked out on the full amount you borrow, for every year of the loan, even though you pay the balance down each month. It's like being charged for the full plate of nasi kandar every week, even after you've eaten half of it. A 2.8% flat rate over 9 years works out to roughly 5.5% a year in real terms. Compare that figure with a home loan or personal loan rate, not the flat rate.
Down payment and tenure
Banks usually finance up to 90% of the car price, and the longest tenure is 9 years. A longer tenure lowers the monthly instalment but adds interest, because the flat rate is charged for every extra year.
Paying off early
If you settle the loan early you are entitled to a rebate on interest you have not yet been charged. Ask your bank for the settlement figure, since the rebate formula is set by the Hire Purchase Act and is usually smaller than the simple remaining interest.
Source: Bank Negara Malaysia.