Worth it to settle car loan early or just let it run?

You're right to check, because most Malaysian car loans are hire purchase with flat rate interest, and the total interest is calculated upfront on the original amount. When you settle early, the bank gives you a rebate on the unexpired interest (this is required under the Hire Purchase Act), but there's a formula (Rule of 78) that means the rebate is smaller in the early years and bigger toward the end. So settling in year 1 of a 9-year loan saves more remaining interest than settling in year 8. Best move: call your bank and ask for an official early settlement quote, they'll give you the exact payoff figure including the rebate. Compare the interest you'd save versus what that lump sum could earn elsewhere (even a fixed deposit or unit trust). For many people, if the loan interest is higher than what savings earn, settling wins and the peace of mind is worth it. But get the actual settlement figure first, don't guess.