A Gen Z car dealer warns reckless BNPL spending is causing loan rejections and could saddle young Malaysians with long-term debt.

THE buy now, pay later (BNPL) method has long attracted billions of users, particularly in Malaysia. While it can be helpful when used responsibly, it can also become a bane to one’s finances when taken too far.

A Malaysian woman recently highlighted the issue after calling out Gen Z Malaysians for what she described as reckless spending habits on Threads.

Being Gen Z herself, the woman expressed concern over her peers’ financial health, claiming that around 90% of their bank loan applications are rejected mainly due to the BNPL method.

“Most of you don’t even have your first car yet, but I can already say that about 90% of loan applications get rejected when they’re submitted to banks. I sell new cars, so I know how bad Gen Z’s financial habits are.

“You all really need to stop using BNPL. I can already imagine what things will look like in the next five to ten years — Gen Z will be facing debts that don’t even make sense,” she said in her post.

In the comments section, the car dealer also shared how being trapped in the BNPL system can hinder future plans such as travelling, as users often fall into a vicious cycle of adding new purchases while still paying off previous debts.

Netizens echoed her concerns over the financial state of many Gen Z Malaysians, which they said is largely driven by BNPL usage.

“You’re right. BNPL is a slow killer. I’m in the middle of settling the remaining payments and plan to delete all my BNPL apps,” one user commented.

“People nowadays spend excessively based on their desires, without matching their income,” another noted.

READ MORE:

Malaysia’s BNPL debt hits RM4.9 billion as youth usage surges

Buy now, pay later: A convenient trap for young Malaysians

Buy Now, Pay Later schemes may turn into debt traps

Teacher asks if he should take a 5-year loan to get married

 The Sun Malaysia