Members of the Malaysian automotive industry met with Bank Negara Malaysia on Friday for a dialogue over the issue of the low and slow hire-purchase loan approval rate affecting the industry, following the implementation of the central bank’s new guideline on responsible financing that came into effect on January 1.
Proton Edar, Proton Edar Dealers Association (PEDA), Perodua, Perodua Dealers Association (PDA), DRB-HICOM and 11 other members from the Malaysia Automotive Association represented the automotive industry in the two-hour dialogue.
In a press release issued by PEDA following the meeting, it was stated that the industry members had tabled and expressed a common grievance pertaining to the BNM guideline, saying that its impact has already been felt and that, if left unchanged, it would have a continued negative effect on car sales. Bank Negara, however, felt that the issue is with implementation and less about the guideline itself.
“Bank Negara believes the crisis that resulted in the low and slow approval rate was due to the implementation by banks on the guideline,” PEDA’s president Armin Baniaz Pahamin said in the release.
“PEDA is pleased with Bank Negara’s proactive action in organising the dialogue, and we believe our business environment will be improved with the clarification made by BNM and look forward to a speedy solution,” he added.
The resolution from the dialogue was for banks to issue a standard guideline in terms of approval criteria as well as documentation required for vehicle loan processing, so that the public would be clear on the matter.
The association said it understood and shared the objective and the intent of the guideline, which promotes lending based on affordability, but said the interpretation on affordability was overplayed by the banks.
It added that although the approval rate was recorded at 54% for vehicle financing in January, a substantial number of loan applications were not even accepted for processing (and thus did not add to the statistics of loan submission), which meant that the actual approval rate was only 30%.
On the issue of ‘affordability,’ PEDA said it plans to meet the Ministry of International Trade and Industry (MITI) and the Ministry of Finance to seek a revision of vehicle excise and taxes and to discuss other methods in which cheaper cars can be had.
The release points out that the average population-to-vehicle ratio in developed countries (such as America and Europe) is three times higher than Malaysia because their cars are cheaper and more affordable; PEDA said if cars were made cheaper through lower excise and tax or from other means, this would ensure sustained growth for the industry while at the same time reduce household debts for the consumer.
Concern was also expressed that various policies instrumental to the sustainability of the automotive industry (such as the amendments to the Hire Purchase Act) were not synchronised with other government Ministries such as MITI and the MoF as well as other industry stakeholders. PEDA said it would be seeking further clarification on the government’s future direction forward for the automotive industry.
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take off the taxes man! it doesn’t help us one bit!
That prove 1 thing…that proton oso being heavily tax by the Gov even though they r national car…debunk stories that proton does not being tax by the Gov
From audited accs of Proton Group 2011. 2011 tax paid RM59.7mil, tax refunded17.1mil, garment grant received RM175.0mil. 2010 tax paid RM38.4mil, tax refunded RM126.4mil, garment grant received RM125.0 mil. What lies that Protong is heavily taxed!!! Protong paid tax and got back via garment grants. Also,tax refunded showed whatever Protong is not taxable but still pay tax which lead to tax overpaid so taxmen refunded them. The audited accs clearly showed Protong is bleeding the taxpayers.
Any other car manufacturer doing RnD in Malaysia? They can apply for the grant too you know. The grant is for the RnD spending which involves local engineers. Proton still paid the tax like other manufacturer. Japan also gives incentive for RnD activities, Korea as well. Even Thailand has their eco car incentives.
Yeah, at least they produced results. Proton? So much money on r&d, what do they do? Rebadged lancer and pour money onto lotus.
gen2, persona, exora rebaged?
what you describe were tax on proton. this is tax on car itself. dont include grant here, all gov in the world give grant to their own local companies. under NAP, automotive companies entitle to receive grant depends on how much they invest and involves the local human resources, and it is clear that out of all, proton the one invested heavily in malaysia right from r&d, manufacturing and marketing. toyota also can receive grant if they move their r&d center here, hire local engineer, build factories here to produce all parts, hire local people to do the marketing, and they will get more if the hire local model for all their auto show around the world.
what the hell’s a garment grant?
GOVERNMENT GRANT! it is given to Proton by the govermnt to show that Proton makes money. In most years Proton doesn’t make money at all .After kira untung rugi, Proton CEO will make phone call to Menteri Kewangan. Menteri Kewangan will top up any shortfall to make it seem like Proton untung! The government must maintain Proton’s place in the market so that it can put exorbitant taxes on overseas cars KONONNYA protecting our poor local struggling company . Pure Bullshit! There are so many people cari makan in Proton. It is not a company, it is a charity organisation for the suku-sakat big fish.
proton does not make maney? Liar!!!!
At first I thought proton was venturing into garment business.
That your fatal error..the tax r borne by u not proton for sure not in financial statement….the tax apply when there is buyer that mean u..proton tax is company tax…to prove it…see toyota malaysia distributor financial statement…take number they sold with tax they had to pay…
KZM (and other Protong Gay Boys), the more you talk, the more BULLSHI* it sound. I suggest you refraining yourself from telling us any of your fairy-bullshi*-tale.
The number doesn’t tally. There’s no equilibirium in the equation. If you add something, it should sum up big. But not with Protong, the big G keep on pumping cash, but profit is way lesser than projection. Obviously, we are beeding money somewhere…
Its either somebody in the Bank Industry doesn’t know how to count money (yeah right, its an insult to them if we say that) OR somebody is making up bullshi*ting-fairy-tale like you.
I now declare the formation of “KELAB ANTI BULLSHI*TING MALAYSIA”.
In 2010 TAN CHONG MOTOR pay RM21208000 tax…. how much if car tax they paid?..to think if they sold 20000 car and each car they pay tax assuming Rm20000 each…how much tax should they paid? That atleast RM400million…in the real world they sell more car n should be pay higher tax..but than again they pay only RM21million…. that clearly show they don’t pay excise tax, sales tax….did KFC/MCD pay sales tax or u pay?..U can call me anything as long u happy n I know my fact
n the fact PEDA who want gov revise the car tax policy….
n the other fact…..seriously i dont like pedang vs pedang but i like pedang vs apple..im not butt lover ok…love gurl only
All car brands are definitely taxed here in Malaysia, and Proton is not an exception either. In fact, Proton is one of the largest corporate taxpayers in Malaysia other than Petronas, etc. But Proton is also the only national carmaker that fully utilises the R&D funds grant by the government. That is also another reason why Proton is now capable to build real value-for-money cars like Persona, Saga and Exora. On the other hand, Perodua cars are now overpriced because Perodua doesn’t even take an initiative to apply for the R&D grant to build their real own cars without the “help” from Daihatsu.
You gotta be kidding, Proton doesn’t pay tax most of the time because it doesn’t make money most of the time.But the goverment gives it “grants” to make it seem like it is profitable.
If Proton makes half the money that Petronas makes, Najib would have dressed Rosmah in diamonds head to toe. And we will probably get RM550 Bantuan Rakyat 1 Malaysia instead of RM 500.
Im before using the same grant as my salary during my RA time in my uni year…RM1000 every month for 1 n half years
appreciate for the info.. can i know the source please?
dude.. that’s company / corporate tax.
what kzm talking about is the exise duty & sales tax being paid by customer, is the same 75%+10% as other cars such as toyota and honda from thai.
Yes that type of tax…..proton car tax n proton tax r 2 diff tax
Good job Proton Con you. I certainly didn’t aware of this until you brought it up.
Fanboys should shut up and learn some tax matters before defending Proton on this.
do you understand the tax structures, Hugo Andore?
I understand tax structure, I am an accountant. I know what I am talking.
Also, the figures I gave were not manufactured. They’re audited by Pricewaterhousecoopers. It’s all in the audited accs. Just go to Bursa website and look at the audited accs.
so, Proton Con You, why did you say Proton con us when the info is easily available on website? we all know about the research grant for years already. few other companies get tax rebates for few years when Gov opened Cyberjaya, now same rebate to international companies to open in Iskandar. do you say those international companies con us also??
as accountant you should know what tax proton paid rite n u should know car tax rite…i challenge u to prove other car maker pay…excise tax, sales tax..and put in their financial statement……dont make malaysian accountant profession in shame
Getting new credit card is also being made difficult, must submit income tax returns for it. BNM is doing a good thing controlling the household debt market or else more and more people will get trapped into bankruptcy.
i agree to limit credit card in this country.. many youngsters bankrupt due to credit card because of high interest rate, 18%!!… that is by far the highest interest among credit facilities from banks.
but i hope the situation won’t make more people to go to Ahlong…
16% below la. which bank is 18% LOL mati
previously 18%, now revised to 17.5% if you didn’t pay promptly before due date. fyi, in Singapore, the rate is 24%. that’s the price you have to pay by living beyond your means.
what BNM doing is right.. the high vehicle excise and taxes are to blame here
khazanah nasional saw this coming, quickly sold proton shares. its just brilliant.
this will be a lesson to the govt – our cars are steeply taxed and not affordable unless with 9 years loan. even many camry buyers are on 9 years repayment.
i truly support the moves by bank negara. if you checked at google “gaji 1,500 nak beli persona”.. you will receive a lot of result.. judging by the popular perception by our youngster. got a job… even salary very minimal.. 1st thing 1st – get a car!
sure you can get a car.. , but what about other cost? maintenance, tyre.. wear & tear.
phew.. lucky our bank negara implement this.. if not – by 2020 -we’ll see a lot more bankcrupt people around us..
“I see bankcrupt people.. ,” where? “they’re everywhere.. “..
govt – please improve our public transport system laa! stop building more highway in KL.. it is not helping at all!
yeah…
at least try to make more parking space at lrt or monorail station..
many people has the intention to go to work via lrt but not enough parking space…
aiyoooi
actually, you can see there’s another problem among malaysians. they’re buying what they can’t afford!
car has become a necessities here. even if our public transport become as good as Singapore, we still need cars for long distance family travel for holiday and festivities. problem is, as you mentioned above, with RM1,500 salary they should only buy Saga, but they wanted Persona… and i agree about the problem among our youngsters, once they get salary they already think about buying a car. once get increament, already think about changing car…
Ya, those who think they can only be ‘happy’ with ‘materialism’ by being ‘materialistic’. We came without anything and we were already ‘happy’…………….
Agree with Mofaz, but with a salary od 1500…one should be thinking of a cheap second hand car…LOL….
how about those student study at U, pinjam gov study loan for a car ?
Hehee, I remember when I was earning RM1500… No thgts of owning a car then, it was Metrobus or KTM Komuter!
Truly agree, lotsa ‘kids’ out there not willing to wait for a decent paycheck before getting a car. Its all about instant gratification these days!
Cheers :)
malaysian like to show-off… ah beng style. Earn only rm 8k nett, already look for Audi..with full loan… to show off during CNY
Well, if his/her monthly income is nett RM8K and he/she choose to drive an A4 or the like, looks like other monthly commitements will be taking a back seat!
He/she may still eke out an existance, but I can’t see it as being a very comfortable one. Thats a choice.
What’s worse is, as in the many other comments posted here, individuals dare to buy a car when they barely have enough to pay rent. Yet somehow they qualify for a loan.
So yea, am glad that BNM has deicided to put measures in place to arrest this worrying trend.
Cheers :)
I agreed that BNM is doing a good job controlling the people debts. The policy is for the rakyat good. We don’t want more and more malaysian going into debt due to credit / loan issues. More emphasis should be look into promoting financial education in the school.
Also the government should open the malaysia automobile industry so that it will be more competitive. The country will not able to compete if the government still spoon feed. Bring proton into DRB hicom will not change much. It’s just a political moved.
Don’t think about loosing jobs, face or pride. Malaysia is a good country with very attractive areas in bring foreign investors. We have lost billions to our neighbour Thailand. And they managed to create even more jobs in their automobile industry. We are much better than them and the government always say malaysia boleh.. don’t just say.. do it and prove it. Put into action and show that we really Malaysia Boleh.
I fully support BNM decision. Should be done sooner.
It is good to hear that PEDA to see MITI to request tax reduction. Overall, everything happene
It is good to hear that PEDA to see MITI to request tax reduction. Overall, everything happened seems to provide a win-win situation..we can get a cheaper car, economy will boom, and gov can collect more tax.
i agree with BNM policy. there are some people who shouldn’t own expensive vehicle but choose to have the one exceeding their financial ability, e.g, $ can buy viva only but decided to buy city. like malay proverb said “biar papa asal bergaya”, but at the end they the one who will be hunted by the bank. personally i pity those people.
if they themselves don’t want to take care of their own finance, BNM doing that for them is consider very good already, you know!!!! they should feed their family FIRST!!!!!! don’t get me wrong, i am not rice anyway…..
Simple, Gomen and Bank Negara are to blame. Gomen tax harga kereta kaw2, BNM approved our local banks suka2 hati letak interest tinggi2 for hire purchase, now you see the result now, this country’s development is facade development, build on hutang because everybody (i mean rakyat biasa) is berhutang, car loan 9,10, even 11 years. Solution senang saja, interest kereta oleh bank dan tax pada kereta import jangan terlalu tinggi, EASY!
KEP HOT kau.
That’s the burning issue that the majority of our population thinks that the problem is easy to solve.
NOBODY wants to even think about the complexity. Everything is easy. Everybody wants to buy a new car. Nobody wants to buy 2nd hand. Why? Image lah! Cakap aje pasal malu. What kind of lame excuse is that?
If our interest rate was low and tax was low, we’d be living in a Communist Country. TAX pays for other services by the government. It pays for infrastructure. Lower the tax, sure something comes up. Its a balancing act.
You pay tax for a brand new car. If you buy a 2nd hand car, you pay less. PEDA does not want to say that. No one here wants to say it. If you can’t afford NEW, buy USED. I have worked for 21 years and only bought a new car last year. While at the same time, I put 3 kids through school, have 2 properties and my wife does not need to work.
Liife is more than just brand new cars. Same thing for that iPad/Android phone. You don’t NEED it. You just want it.
I agree with you.I’m currently driving an old car.No more loan,easier on my wallet.
You are right with the image thingy.Some people really needs new car because of image.The problem now is buying 2nd hand car is more difficult than buying new car due to higher risks, whatever that means..
Some people say used cars have more problems.Sure there are some problems, but you just need to be more careful when choosing 1 thats all.
They just forgot that new cars also need repair when the cars reach 5 years old.Whoever took 9 year loan will feel the pinch by this time.Sell it?Lose every penny you paid over the years.Really sell it,its a never ending loan.ok if you are not from the lower income group.
Anyway I agree on BNM policy.
That’s right man, I envy you.
KEP HOT KAU BERJAMBUL. When 10 billion lost because mismanagement, IT IS COMMUNIST OR WHAT? When 250m lost pasal lembu, apa pula tu fascist? WHEN 4 BILLION LOST pasal skandal PKFZ, demokrasi pulak ke? when it comes to benefit rakyat directly, suddenly it become COMPLEX, ROCKET SCIENCE LA PULAK…….POOOOOODAHHHHH
bangang betul!
why going the extreme by saying reducing tax is equivalent to a communist led goverment? are u saying communist is a bad thing? have you not buy any item originate from the land of “sleeping dragon” i mean china larrr..
reducing excise and specific tax will not make anything or turn anyone into a communist goverment. just look around asean country like thailand and indo got car tax bo? heck they even got “Detroit of Asian”..Yes? and this FDI is giving local ppl the opportunity to work and some with a wages that above than a local company why? because there is competition within the industry.
but some high profile malaysian try to be smart by eliminating the competition, buy over, hostile takeover, and open tender..is not even a word in their dictionary..and the board of director only have one common goal ie. to achieve monopoly even if it has to burden the rakyat
but lucky we still have ppl like zeti aziz in the BNM to do the “check and balance”. we need more people with good principle like this in high profile job in G .
2 cent
tax from car industry is billions… which is also source of income to the Malaysia Govt…
that billions also used to develop the country…
so, removing the tax means remove billions of Govt income, which leads to other thing to be taxed… or, some subsidy being removed…
which part of the country is developed? develope the cronies wallet more to it..
how many KFC, i mean NFC, PKFZ, Parliament forever repair, fallen stadium we can afford?
How many PR do and mana janji2 manis PR Selangor sebelum menang dulu?
I do believe that the car in Malaysia is overprice partly due to the high government tax. However, having a low car price will not necessarily solved the so many problems related to it as mention above.
that tax is needed – to protect proton and perodua laa… viosJ actual price is 40K++only laa…
Where did you live Bro? Even Belum Forest also got ‘some’ development. FYI now people in Malaysia eating readbeanbun at Harrods KLCC, poor you hehehe!
Kesian…i bet the crazy mahaleel will march to ba negara malaysia wih mahathir piggyback on his back threatening ISA on Zeti if she does not comply..
there is no ISA anymoreh
you think everything will be turned into politic ar?
I think the gov and JPJ should come out with quota system to control the population of cars on the road. Let say 2000 quotas will be provided for each type of vehicle. eg. car, motorcycle, lorry, etc.. In order to eligible the quota, the gov must impose some rules to car buyer.
1. Only car buyer whom make a downpayment 30% or higher are eligible to receive the quota.
2. Paid by cash is highly recommended..
3. The car owners are limited to owned two cars under his/her name. Otherwise, higher surcharge will be borne by his self.
Improve the public transport first before u even suggest such measures. Think about those poor folks staying at sub-urban areas going to work daily, how are they going to be mobile if they cannot own a car. Good public transportation must also take into account where the masses are staying. The rich can take care of themselves but it is the poor that need good public transportation the most. However i do agree one must not spend beyond the means.
better still, limit new car registrations only for 4 biggest cities – KL, JB, penang and ipoh. its too crowded already.
that is not a bad suggestion.. however, it has to also come with alternatives to those who are not inclusive in the quota. Perhaps a development of railway system in Malaysia should be the priority now. Don’t let KTM monopoly the industry, increase the service. Government focuses only providing the rail networks, and let the private sector handle the commuting services. Imagine a high speed train from Perlis to Johor, that cuts the journey trip into half, will help not only in the social context, but also the economy as well as people can travel further and faster.
Anyway, so what is the conclusion from the dialogue?
My conclusion is the gov should implement this quota system in the most major cities in Malaysia. eg. KL, Klang Valley, JB, Penang. I did agreed with u for improving rail networks and its shouldn’t only focusing in Klang Valley area. All major cities must have a LRT/MRT system for reducing the number of cars entering the city..
Not that simple friend… Although Malaysia isn’t very big, but we’re not like Singapore-small, you can’t have one solution that will work throughout Malaysia.
Something has to change but I don’t know what. I have many ideas too like you, but when I think about it more, it will all lead to new problems.
On a slightly related topic, I really think the government should really address the lack of parking/traffic jam problem in big cities like KL and Penang. Buses need to be less of a pain to take, I’m not too fond of walking 10 min, wait 30 min, ride bus 45 min, walk another 10 min to my destination.
can paultan clarify what is the new bnm guidelines on hire puchase. I heard that car loans are now max at 7 years. Well if bnm is sincere to help reduce bankruptcy rate then they also need to consider current car loan’s interest. It’s too high. Why is the interest so high in the 1st place especially for local cars.
To clarify, previously you can use your gross income to apply for a loan. Gross includes deductions for EPF, Socso, etc. From this gross number, 30% ruling comes to effect where if you have a housing loan, the total amount of inclusive of the applied car loan(s) must not exceed 2/3 of your “total” income. The issue is the definition of “income” where in reality the actual paycheck amount is much less …. Minus credit card bills, monthly expenditure, there is increasing number of defaulters.
Worse still are people who find ways to over declare their income, allowing them to buy a vehicle far beyond their means. Those poor sods who already earn a measly sum now have to fork out more more car petrol and maintenance, which most dont consider. I am not surprised Proton and Perodua are hit hard since, like it or not, their vehicle are the most “ahem” affordable and competition is fierce even among their own branches and each SA tries every means necessary to earn their commission. So with the tightening criteria, most of the hanky panky is eliminated and what we see now is an actual reflection of what the real vehicle purchasing power of majority Malaysians is.
I applaud this move. It forces everyone to truly buy what they can afford and in some ways reduce the number of new cars on the road.
People who are affected most are those with a low fixed income but in reality they have another source of income but not a fixed one. This includes the sale of kuih, nasi lemak & etc.
These people bought a car before and can afford to pay all their loans without a problem, even when their income statement says that they can’t afford to pay. With the new guideline, it is difficult for them to get a loan approval even though their track record is clean.
Then pay higher down payment la……….. to reduce loan amount.
the side income can be declared to the the bank..declare to LHDN 1st, the bring the document to the bank.but they might have to pay income tax for this side income that they declared to LHDN
If people can find ways to “over declare” their income previously, what’s to stop them to also over declare or use creative accounting to adhere to new BNM’s ruling?
i think the govt should build dedicated Bicycle lanes on all roads!! it’s green and affordable way to solve things once n for all !! Then provide incentive for battery assisted bicycle development !!
Have you ever use bicycle or at least kapchai in KL traffic? Inhale CO2 is BAD! Use mask? For long term its annoying.
not logic at all bro..
do u personally want to come at ur office or even shopping complex covered with sweat?
come on think deeper lah…
this is malaysia…our temperature like what?
dont compare to new york or japan or korea…
they can cycle anywhere but still felt cold..
us? cycle 500 metre basah ketiak…
eeeeeuwww
Dedicated bicycle lanes: maybe NOT on every road…. but the authorities can start “forcing” developers to build them in housing areas. At least on the main roads of the “taman”s where cars, motorbikes, lorries, vans etc are zooming faster than the fastest Malaysian rally driver. You know, Malaysians… we take our driving seriously…. :rolleyes:
If you ride a bike, the pedal type, not the motorized one, in an average housing area, you constantly have to watch your rear end. :mad:
BNM is doing the right thing. People who cannot afford should not be allowed to get loan. They can opt to buy 2nd hand car that they can afford. What PEDA or perodua are doing are selfish. Blaming BNM for your incompetencies. Dont they know that there are so many bankrupt people in Malaysia. Current economic climate is bad. Our government debt is getting higher and higher in terms of GDP percentage. We are not far from becoming like Greece, Spain, Portugal etc.
proton should have find ways instead on how to sell more cars in oversea markets… rather than appealing to get locals to buy their models.
common laa.. u r 25 years old already. there should not be any protection whatsoever towards proton. a 25 years old man should have been able to earn own income and capable of even getting married and have kids!!!
malaysians deserve cheaper cars now!! lose the tax!!
viva 20K, saga 30K, persona R & vios 40K, altis & civic 60K, camry 2.0 80K…
Totally agree with BNM!!! Rite move!!
See…. this is what happen when a car maker just doing business for local market only…..
DIE hard!!! If Proton is selling well in oversea… why bother with BNM?
in my opinion,I think it is a complicate issue ,firstly our public transportation system are very backward and the planning also not well,it have to force people to buy the car to solve the transport problem; the high vehicle tax force people to buy the car with high damages just for the emptiness slogan and bring the benefit for a few certain people but it get suffer for our people.
now the most important thing is upgrade our public transportation system and reduce the deformity high vehicle tax.come on ,GOV please wake up!!!
9yrs loan already indicates overall affordability in owning car. if household debt is minimal, maybe more people opt for 5 to 7 yrs loan only. Industry also become active. Perhaps banks should give statistic on how many go for 9 yrs as compared to 5 & 7 yrs. i am sure many dont want 9yrs loan, but what can they do as they need cash for other things. whats d point of having new cars rolls in specailly rakyat cars when not many people could opt to buy new?
In my opinion, the BNM’s intention itself is a very divine one, as it may protect our banks from suffering from financial credit meltdown. In fact, the banks actually “borrow” the money supply from BNM and will have to pay the money back to BNM plus some interests. Therefore, in order for them to generate income to pay back to BNM, the banks themselves offer loans and charge interests to the loans. If there are more and more defaulters, then the bank could not afford to pay back to BNM and may result in financial credit meltdown.
However, the new procedures by BNM may cause only a few loans will be approved, which will heavily affect our automotive industry here. Car sales will drop kaw-kaw. Even if people can pay cash, the car dealer won’t have his / her cut. There will be possibilities of some car dealers closing down. And worst of all, those whose loan applications are rejected may have to resort to Ah Longs to borrow money for the car.
So how to tackle with this issue? In my opinion, lower-income groups and first car buyers should be given certain exemptions from the new procedures (or use the old procedures for these groups of buyers), under a condition that the car must be around the range of affordable price (say RM100k and below). The new procedures should apply for second car buyers and any other groups that I haven’t specified as above. I hope this may help in tackling the overall issue.
For a win win situation, govt should substantially reduce taxes on entry level/affordable cars (including imported cars) so many people can buy and our car market not being affected too much.
Lower prices as a result of lower tax will put many in non-bankrupt situation and BNM’s concern would be resolved.
I suggest those cars currently under RM60k to have the taxes reduced. Imagine i10, saga, myvi, viva, alto etc etc sold around RM20k. Car sales up, much lesser bankrupt cases and the Govt may transfer the tax loss in lower segment to high segment – luxury/sports cars etc.
Just my 2sens
for those customer who wan buy big or luxury car just apply your loan from bmw credit . low interest, high margin & easy approval due to they didnt have ccris access.
i heard toyota capital also opening up to other car makes too… huge profit there.
Wrong la u. Bank negara on a normal day does not lend money to banks. They will if the banks get into trouble only. Its called lender of last resort. Usually banks use money from ur deposits to give loans. Sometimes they also borrow from the seap market. Look that up.
Many of us know what happen in Greece. Great depression in US and in 2010, its rewind back. And Europe borrow money from China.
I am among youngster who just graduate a few years ago. Its true after a few month work, youngsters want new car. Degree maa… takkan pakai motor je. Gaji sudah 1.8k. We can afford…. So buy a car. Beli myvi…. viva kecik ma (quotes from girl). Then a years later, going married. So get a loan la…. at least 20k (for malay wedding). Then insufficient money intensify. Get credit card, will help you in trouble. (you always in trouble when less money for large commitment. )
After married…. lalalala…… gross income might become 2.1k. The net? Dont ask!
BANK HAVE TO FOLLOW BANK NEGARA NEW GUIDELINE BUT CREDIT COMPANY NOT FOLLOW SO JUST APPLY LOAN FROM THOSE CREDIT COMPANY LIKE TOYOTA CAPITAL, BMW CREDIT . EASY N FAST APPROVAL !
JUST APPLY LOAN FROM THOSE CREDIT COMPANY . THEY NOT FOLLOW BANK NEGARA NEW GUIDELINE e.g:bmw credit or toyota capital . easy n fast approval
We are having Sub-Prime loan for Protong basically. Simple as that.
And with some many people bankrupt for owning a vehical (I dont want to put all in Protong), its obvious BNM try to do the regulate, and let’s see how the politicians muscle that.
Now you will see how the Politicians fight for the Cronies…
who knows next EPF will offer Car Loan next when all banks neglected to give P1 loan..
This also u want be a reason to bash P1? Cronies? U must buat2 tak tahu PR cronies in Selangor, Kedah and Penang. When they win, all thing distribute to all PR cronies. At same time bising2 fasal Lynas, rosmah. To cover yourself, you must uncover others and make other view straight to others. Ok, lets put politic aside you fool.
This is BNM regulates and its effect all car maker. If you cannot see words PEDA repeatedly being at above statement, i can read for you for free you fool.
If BNM make P1 exempted, P2 and other car maker will make havoc at meeting room earlier before the public discover. BNM will not do that. Even kids can think this you fool.
You already 3X fool. Stop talking please. Thank you
like versus hate. ratio rate of 1 :4
I reckon BNM’s main objective to slow down properties speculation but it seems like car industry is the 1st to see the impact. If BNM dun fix this, we will see slower new car sales, used cars value depreciate faster and more new /used car dealers close shops. This may not be a bad things. Imagine one have to spend 50% of their income to car loan every month? Instead of paying bank loans, these money could fuel other industries like food, clothing or even savings.
At least from a consumer point of view, we would see more discount and promotion from the dealers in the coming months.
You’re brilliant. I never think about this.
House price is skyrocking and will continue up and up every day especially at klang valley.
When purchasing power is being cut off/restrict, less people entitle to buy house and others opt to rent. This will slow down market price and fix to reasonable value.
In other hand, car dealers have to give discount and promotion to increase sales. This will benefit to us, or at least the discount can wipe 10% downpayment. For dugong, its 7k maa…. WOW…. Hidup my dugong !
Agree with u on the properties. But i would like to argue on used car value depreciate faster..
As people cant afford to buy new, next best thing is buy 2ndhand cars, which will preserve its value as demand increase.
Yes,I think second hand car will appreciate in value.Loan approval still not easy,but at least it’s cheaper.so low loan value will make it easier to approve.
i beg to differ – oversupply of new cars will force huge discounts and subsequently make used cars depreciate heavily… even more.
Simple, no money don’t buy car.
i got money but enough to pay installment for a coffin+4 tire…
I applaud BNM’s new guidlines. If anything they should not bend to PEDA.
PEDA, MITI and the Government should address the elephant in the room. Cars are overly taxed with no viable alternatives.
I remember when I graduated and got my first job when I was in Canada. despite the cheap cars (ie. A new civic would be 18k), I still started out with a beater that cost $1500.
I have a niggling thought that we Malaysians are too proud to own 2nd hand cars. I mean, if you’d saved up a little, what is wrong with a $10,000 1996/1997 Satria in relatively good nick just to get you to and from work? I bought a 2nd hand 8 year old unit for cash, and now after 6 years, I’m still driving it, clocking 300K kms. As per example, its cheap, relatively frugal and reliable, cheap to maintain and repair, big boot with the seats down, cheap to insure, drives and handle way better than any of the new econoboxes….a perfect starter car.
I personally don’t see the logic of killing one-self on a fast depreciating liability.
If one is making $1500/mth and aspiring to own a Viva or Saga, hate to break it to you, its beyond your pay packet. A 40K car will still entail a $700/mth loan payment on a 60mth tenure. That’s 1/2 of your gross salary. Such people will still end up with 7 or 9 year loans. I wonder if you’d still be able to secure a loan for even a Viva or Saga if you make only $1500
This has severe cascading and painful effects, even if MITI decides to lower prices. Next you would have the used car dealer associations (and owners) bitching about dropping new car prices depressing 2nd hand car values.
And lets not forget the recent crackdown and possibly eventual banning of cheap imported 2nd hand parts leading to higher cost of ownership of second hand cars.
Change is painful but necessary.
That said, the root cause of this is 2 fold. The government has failed miserably in promoting alternative public transportation leading to cars being a necessity, and the unnecessary taxation of call cars to give proton a competitive advantage in its early days.
While we see some improvement in KL (which is slow) in terms of public transportation, what about the rest of the country?
Malaysia has a big issue with transportation, it has just been swept under the carpet to not embarrass the NAP, which is a big failure.
The most affected is, of course, P1 and P2.
But please bear in mind, it’s not only them.
The bottom line is for those who go beyond their means.
Those who can only afford 2nd hand car but opted for brand new, those who can afford Proton but go for T n H, or even to BMW…
on the other hand, dealers are working for easier loan arrangement, at times up to 12 years.
that makes malaysian victim to the loans.
An average malaysian, after few years of working life, will have below list of credits:
– PTPTN at 3%, thanks to G,
– Car loan upto 9 years,
– Housing loan upto 40 years
– Personal for the marriage (getting married isnt cheap nowadays)
– Credit card overdues…
PTPTN already 1% right?
that is why its call sub-prime loan in USA …just compare how many default, how many bankrupt due to car loans, its all published.
if we have transport systems like Bangkok/SG/Taiwan/HK, the car demand will be less, and that is not a good news to P1 (and the supplier) since they dont know how to compete in outside Msia but own market due to protection.
Dr M has know this long in this smart mind, that is why our public transport is so lousy, but the Tol is keep building up. The P1/P2, the Tol Companies are all the beneficial.
went to taiwan and ppl around there use public transport. most of them just own a scooter. ppl there starting to neglect the ego of having expensive cars because of theirs public transport.
Some people will say the value of their family members is more valuable than any car. Even if we can’t afford it, we’d still look at the cheapest car with 7 airbags, ESP, Traction Control whatever… Some of us will still opt for these car and find a way to pay for it, not because of berlagak, but for the unconditional love for the people they care for.
This situation puts some people in heavy debt, but worth the effort. But who’s to blame? It’ not like local manufacturers care about safety, or even the government upgrading standards…
As buying car is getting harder, many may also opt for motorcycles. I see this as another risk exposure to the safety on the road. The result is more people shift to motorcycle, meaning more people are exposed to lesser safety quality on the road. Don’t be surprised if the fatality rate increases (as it’s been doing for these years) further than past years.
“PEDA said it plans to meet the Ministry of International Trade and Industry (MITI) and the Ministry of Finance to seek a revision of vehicle excise and taxes and to discuss other methods in which cheaper cars can be had.”
——————————
This is where PEDA should be careful of what they wish for
There’re pros and cons. Those are huge govt revenues and surely can’t be easily revised just for the sake of making Protongkat cheaper. Then the rest of other brands will be cheaper which will hurt Protongkat sales anyway.
Currently cars below 1800cc are subject to 75% car excise duty and 10% sales tax.
The best way to revise it is to use Fuel Efficiency and CO2 Emisson tests, and rate it accordingly. Also, this rule only applies to cars below 1800cc so as govt revenue on above 1800cc car taxes can remain as it is.
JPJ/Puspakom/Transport Ministry/Environment Ministry should be the authority to conduct these tests before any new cars below 1800cc approved for sale.
For Fuel Efficiency test:
Mileage calculated on per 100 km travelled. Litres of fuel per 100 km. The lower the better and only fully-electric car can achieve 0L/100km test. Rightfully, fully-electric car should get zero excise duty.
For CO2 Emisson test:
Release of carbon dioxide grams per 100 km travelled. Again, the lower the better and also fully-electric car emits zero CO2 or 0 gram / 100 km travelled. No brainer for fully-electric car should get zero excise duty too.
Next, combine both tests as percentage merit points. The points system will determine how much precentage discount or rebates entitled to reduce the excise duty from maximum 75% rate.
Therefore cars below 1800cc that shows better fuel-efficiency and cleaner emission level should be REWARDED with LOWER excise duty. Note that this proposal only for cars below 1800cc which cater the majority of car buyers.
That’s why before PEDA spew their venom on excise duty, Protongkat price etc. the govt surely not give up their revenue for nothing. ASEAN will slowly propose and implement efficiency/emission-based car excise duty soon with Thailand leading the way and surely our BolehLand have to follow suit.
When this happens, PEDA can pee in their pants knowing how crappy, inefficient and dirty Campro engines are scoring low points in both Efficiency and Emission tests yet with Muka Tak Malu asking for lower car excise duty without merits!
————————–
BMW pushes for CO2 excise rate
Bangkok Post Auto 24/01/2012
BMW reaffirmed its position on the implementation of a carbon dioxide (CO2) emission-based excise tax rate for vehicles to enable Thailand’s automobile industry to achieve sustainable development and set a precedent for global environmental concerns.
Thailand’s current excise tax system for vehicles is calculated based on engine size and horsepower. BMW said engine displacement and horsepower are not indicators of an environmentally friendly vehicle as opposed to the level of CO2 emissions.
Thai governments have discussed BMW’s policy for many years, said Ronald Gentsch, managing director for vehicle distribution at BMW AG and honorary investment adviser at the BoI Fair 2011.
“With the Asean Economic Community coming in 2015, it will be crucial for Thailand to consider a long-term strategic plan for its automotive industry to achieve sustainable development,” he said.
A key component of sustainable development is CO2 reduction, especially as CO2 limits are soon to be enforced in many parts of the world.
If incorporated into Thailand’s excise tax, the restriction would encourage other automakers to invent and integrate new technologies for CO2 reduction.
Though a CO2-based rate would reduce excise tax income initially for the government, BMW argues tax income will gradually increase due to the multiplication effect of each vehicle and year.
Another method to implement a CO2-based tax would be to introduce an equal price on each gram of CO2 emitted with incentives for all vehicle segments to invest in fuel-saving technologies.
The BMW Group has been named the world’s most sustainable automobile company in the Dow Jones Sustainability Index seven years in a row.
Mr Gentsch, who previously headed BMW Manufacturing Thailand in Rayong province, said the company’s sustainability strategy is focused on efficient use of resources and conservation of the environment via its Efficient Dynamics technology (smaller engines with enhanced performance) and clean technology schemes (reduced energy consumption).
BMW Thailand sold 3,053 vehicles last year, up by 1.2% from 2010.
VERY GOOD MOVE BY BNM.
IN FACT THEY SHOULD LIMIT REPAYMENT PERIOD TO ONLY 5 YEARS.
THE CRONIES HAD IT SO GOOD SELLING JUNK AT 1OOK FOR SO LONG. LET THEM SUFFER A BIT. WE HAVE SUFFERED FOR FAR TOO LONG. MALAYSIA HAS 2ND HIGHEST CAR PRICES IN ASIA BUT INCOME WISE, POOR LIKE SHIT.
A very good move to avoid further bankruptcy to young exec whom are deemed to have the potential of ruining their future with so many options of loans blast to them.
most probably the BNM policy will affect those who want to ‘act’, once get new expensive vehicle want to make the road as their private properties….. (people who can easy-easy afford the cars will not provoke people on the road). i support BNM to reduce the numbers of these kind of people on the road. maybe with small and cheap vehicles they will be more polite. i am not generalizing here, don’t get me wrong, not all want to ‘act’.
from what i see the effect to P1 and P2 is very temporary. after this the sell will increase because the real P1 & P2 customers are actually those who want to ‘act’ with H & T. with BNM policy, if they still want new cars, i see most of these people will end up with P1 or P2. the sale of H & T will be affected in reality.
So the out come is….we wait and don’t buy cars until we see cheaper cars as tax is reduced? Seriously after what they discussed in the meeting and now there is talk on lower tax how would people who are about to make a purchase of a brand new car feel? Confirm they would want to wait to see if the prices will fall.
I’m one of them who is in the market to get a P2 car for my wife but after reading this I think I will hold off my purchase…
The main issue here is not affordability, or tax or proton or BNM or PEDA.
Its about wealth distribution. People in charge should carefully study the whole picture before making amendments at the wrong place, wrong time. BNM move is morally accurate but it should be done later. As a result, currently it affects lower grade cars, for lower income people, and its even lowered their quality of life.
First we have to find a mechanism to earn from rich and distribute to poor. The rich should be well marked (most of our richmen under declare their properties, income). We have to go into details. We have to increase tax where its due and reduce where it needs. Prevent monopoly, misconduct and go beyond politics. Give credits to who work best and not talk best.
Ideally this move should boost local car sales, lower income group can afford to own cars while the rich not losing that much.
If you are talking about wealth distribution, The Malaysian government have had 50 years to do that. Instead, most of the nation’s wealth has been wasted or not well distributed, nor re-invested into public programs or infrastructure that would build wealth.
Debt is a deep hole, what one gets into is tough to get out off.
There is little reason for the sharp increases in car prices in the late 80s. We got a 1986 Civic for 21k (which is roughly less than 1 year’s salary for a middle income earner). Why is a base 1.8L Civic going for 110K now? Can a middle income person earn 10K/mth now?
We earned less back then, but people were more frugal in thier ways and had less big ticket items to spend on. If one spends a good 1/2 of thier monthly salary on just the loan payments (not including maintenance, fuel, wear and tear, etc), one can only imagine what is left over for savings.
BNM realises the debt exposure is too high and has put steps to counter this, first with Credit cards and now loans. Any one with common sense will know that if in any case, the economy tanks or slows down, all these debts will be non performing and you’d see the beginings of social breakdown when breadwinners loose thier livelihoods. Most people’s savings isn’t enough to tie them over through rough patches.
gua sudah pinjam sama ahlong…diorg suka mau tolong…tak bayar pokok bunga melambung…tak bayar langsung tangan gua dia potong…kalau hidup di ICU melolong lolong…kalau mati gua jadi pocong…pasal bank tak mahu tolong!!
terbaik bro!
Fully support BNM to control the household dept (Malaysia is currently ranked second highest household debt after South Korea) if you can’t afford car don’t buy one.
I have seen some car owner actually kept their car in the house & use it once a week, while taking kapchai to work every day, some can’t even afford to repair the car once it spoiled & need to wait for the next pay cheque.
The ever increasing real property price result from over speculated had increase the burden for the low & mid income, net disposable income had reduce tremendously as the income is stagnant while essential good price increased rapidlly, therefore if PEDA want to play blamming game, ask the to tembak the developer.
It’s like a loaf of 12 slices bread if one decide to eat more other would left half full.
Gaji 2000 ambil loan 9 tahun lepas 2 tahun tak mampu
sambung bayar. Lingkuplah!
Memang wajar tindakan BNM.
Kalau boleh, kurangkan masa loan ke 5 tahun sebab
kereta 9 tahun memang sudah jahanam.
Selain kereta BNM juga patut kawal pengunaan kad kredit.
Ini semua pengalaman yang berlaku pada jiran ” bujang”
dan rakan sekerja saya yang baru kahwin.
sedih tapi inilah – “kisah benar”!!!!
So long as they can sell their cars, importers and dealers would very much like the banks to continue lending to inelligible buyers. After all non-performing loans are going to be the banks’ baby and not theirs.
Talk about a sub-prime crisis on the local motor industry.
Nowadays, people buy cars as a need, not a luxury item. Although BNM’s guideline is most welcome, P1 and P2 should look into other option to provide rakyat wit a more affordable car in a good package.
In the American context, if you need more than three years to pay off the car it means you cannot afford it.
In Bolehland I will allow for five years due to the higher price. So, please don’t go for seven or nine years repayment. Just buy a cheaper car, used or new.
I will definitely support BNM’s decision. To add on, someone mentioned that some don’t buy cars because they need it, they buy it because they want it, feel better or to show.
I’m not saying buying expensive cars isn’t good; it is okay if you have disposable income to enjoy the luxury. Most of us own a car to commute from point A to B because of our ancient public transportation master plan, by right should have been done long time ago. Anyway, we are heading there but it’s going to take longer.
In the mean time, most of us are stuck in between. Most of the reputable companies are located in the busy area like PJ or KL, and to travel from Shah Alam or Kajang, one have to depend on public transportation, so the need to buy a car arises.
Example my younger brother bought a used kancil year 2000 for 12K from an owner and used it carefully from 2008 till 2011, sold it for 7k last year then he upgraded to a new i10, to get something slightly bigger and cheaper. He earns around 7K but drives something basic to just to commute and he is very careful with his money than I am. He uses his income wisely into BNM approved investments and so on. My other brother who is specialist at a well known hospital drives a Mazda2, earnings in 5 digits plus plus.
I will always recommend 2nd hand car to those who wants to buy their 1st car. Malaysia has a pretty good market for 2nd hand cars, only if you are patient enough to source for one.
Why pay so high for a car in Malaysia? We will be crying if we look at the same car price in Singapore or even UK. Even our own Proton is sold cheaper in UK than Malaysia, after conversion.
Used cars will have problems, same goes to new one, even the new BMW 5 series had suspensions issues, customers who complained was called in and BMW replaced it with an improved version.
Every new car becomes an old one in few months, rising heat, moisture, devastating road conditions, poor Ron95 petrol quality, accidents due to bad driving behavior – must say the driving schools do take under table to ensure the student receives a pass, these increases the accident rate and death toll thus resulting in heavy traffic jams and longer idling of engines during peak hours, this translates to heavy maintenance.
I have a Kelisa myself, bought it new at 37k, still driving it, current market price is about 18k, even after 9 years, depreciation is about 5.5% per year, which is very good.
Most of the current loan program is about 7-9 years, down the road, one will change after few years. If we plan correctly and calculate, the money that we loose by changing and buying a new car is enormous.
Sad to say, someone that I know had a new Vios 2007, change it to a newer Vios in 2010, just because he spent around 1k changing both the driveshaft in front. He assumed that the condition is deteriorating. I asked myself what?!@#$$.
Who is gaining and who is loosing? If this continues, like BNM said, the debt rate will rise, so will Credit Card debts, loan debts and so on. Living and earning only to settle debts till 50 and die at 60 because of blood pressure and stress. What a life man?
My dad, retired, wanted to sell his old A6, paid off, and get a proton saga. I managed to convince him to keep his car and become debt free. He is very happy now as he can see his full pension money going to his pocket. Enjoying his retirement.
Everyone should plan to become debt free and lead a less stressful life.
Sure, a car is a necessary evil. You will lose close to 20% immediately after signing on the dotted line.
People buy Proton either because they have no choice or they simply dont trust the reliability of the car and opted for imported and more expensive,more reliable and more value to their hard earn money. Its no point buy cheaper proton car (its not that cheap if the interest is more than 3.5% for 7,8, or 9 year-do the math urself) if it makes you regular customer of service centre/workshop. Proton is legendary in making sub standard/cincai cars. THIS IS FACT. Dato Seri Syed knew this, hence the lifetime warranty for power window, but this is not enough, Malaysians need more than that in order to regain their confidence in Proton, 5 years or 300 000km warranty should be a compulsory to all Proton models now, thats what we call initiative. Ada berani ke Proton?
i never be a regular visitor of service center what…
So… where is your proof?
I think the solution is to reduce car taxes rather than to get BNM to revisit its guideline. To compensate the lower tax revenue from sale of cars, the govt should gradually reduce petrol subsidy. In fact this worked out to be a cheaper alternative for consumers as the price you pay for higher petrol is much less than the amount you pay for the taxes and AP, if you annualised over the lifespan of the car.
I feel that this whole situation where protectionism is emphasized on the pretext of national interest is actually to benefit the AP holders. There is no real incentive to keep Proton competitive. This is to ensure that those who can afford, will buy from AP holders and at the same time, pay high taxes to the govt. For those who have no choice but to buy Proton, what is sickening is that Protons sold overseas are cheaper (and better in terms of specs) than the one sold in Malaysia. Is this how you reward Malaysians for being patriotic? I think it is high time we consumers stop buying new cars if possible until the AP policy and the high taxes are removed. In the mean time, I will just stick to used car or keep my existing car as long as possible.
firstly the perodua that keep shouting said the new regulations affect their sale..and guess wht,the protong supporter is the loudest that keep barking said perodua only thinking about sale and whatever…but after the proton itself barking to the BNM, the protong supporter is sit quietly like nothing happens…moron…extreme stupidity
To add on, someone mentioned that some don’t buy cars because they need it, they buy it because they want it, feel better or to show. I will definitely support BNM’s decision.
I’m not saying buying expensive cars isn’t good; it is okay if you have disposable income to enjoy the luxury. Most of us own a car to commute from point A to B because of our ancient public transportation master plan, by right should have been done long time ago. Anyway, we are heading there but it’s going to take longer.
In the mean time, most of us are stuck in between. Most of the reputable companies are located in the busy area like PJ or KL, and to travel from Shah Alam or Kajang, one have to depend on public transportation, so the need to buy a car arises.
Example my younger brother bought a used kancil year 2000 for 12K from an owner and used it carefully from 2008 till 2011, sold it for 7k last year then he upgraded to a new i10, to get something slightly bigger and cheaper. He earns around 7K but drives something basic to just to commute and he is very careful with his money than I am. He uses his income wisely into BNM approved investments and so on. My other brother who is specialist at a well known hospital drives a Mazda2, earnings in 5 digits plus plus.
My dad, retired, wanted to sell his old A6, paid off, and get a proton saga. I managed to convince him to keep his car and become debt free. He is very happy now as he can see his full pension money going to his pocket. Enjoying his retirement. I have a Kelisa myself, bought it new at 37k, still driving it, current market price is about 18k, even after 9 years, depreciation is about 5.5% per year, which is very good.
I will always recommend 2nd hand car to those who wants to buy their 1st car. Malaysia has a pretty good market for 2nd hand cars, only if you are patient enough to source for one. Used cars will have problems, same goes to new one, even the new BMW 5 series had suspensions issues, customers who complained was called in and BMW replaced it with an improved version
Why pay so high for a car in Malaysia? We will be crying if we look at the same car price in Singapore or even UK. Even our own Proton is sold cheaper in UK than Malaysia, after conversion.
Every new car becomes an old one in few months, rising heat, moisture, devastating road conditions, poor Ron95 petrol quality, accidents due to bad driving behavior – must say the driving schools do take under table to ensure the student receives a pass, these increases the accident rate and death toll thus resulting in heavy traffic jams and longer idling of engines during peak hours, this translates to heavy maintenance.
Sad to say, someone that I know had a new Vios 2007, change it to a newer Vios in 2010, just because he spent around 1k changing both the driveshaft in front. He assumed that the condition is deteriorating. I asked myself what?!@#$$. Most of the current loan program is about 7-9 years, down the road, one will change after few years. If we plan correctly and calculate, the money that we loose by changing and buying a new car is enormous.
Who is gaining and who is loosing? If this continues, like BNM said, the debt rate will rise, so will Credit Card debts, loan debts and so on. Living and earning only to settle debts till 50 and die at 60 because of blood pressure and stress. What a life man?
Everyone should plan to become debt free and lead a less stressful life.
apa daa all these people…
In the post not stated PEDA only la… there is also PDA, DRB HICOM etc…
Wise la you Paultan… attracting traffic by psycho play…
ajd, again, it was PEDA that sent in the press release, which I edited for what was necessary brevity and clarity. No other companies did; if they did, I would gladly have merged everything into a common story carrying all the necessary viewpoints from all concerned. PEDA may have expounded its point of view on the matter, but this is to be expected since it was coming from them – whether one agrees with these points, or feels otherwise, is something for the reader to decide.
In any case, the story itself was worth running, because of the mention that there was a resolution from the dialogue, and that was for banks to set out a standard guideline in terms of approval criteria as well as documentation required for vehicle loan processing, if only to unify things (what this is, and the specific details, will remain to be seen). Also, the topic is worth discussing about. Frankly, there have been many valid views and opinions here, something that is not always the case with many other posts.
this guy comment is clearly show how dumb is the protong supporter..hahahahaha
Here are the interest rate for car financing I get when browsing car this month. This is not the exact but just an average rate.
Bank car financing
National Car = 2.8% up to 9 yr
Non-National Car = 2.5% up to 9 yr
2nd hand car = 4.5% (Less than 5 yr old car, up to 9 yr loan, older car up to 5 yr)
other financial = 5% to 8% depend on the car.
Well, After I found out about price n interest rate. I stick with my old iswara for this year, which is free of loan, and with reasonably maintenance fee..
If the 75% + 10% taxes were removed on say Toyota Vios, what would the price be?
Currently RM76k (auto 1.5J), so working backwards would be 76 x (1/1.1) x (1/1.75) = RM39k which would be very affordable for the rakyat.
And for those who cannot afford, 2nd hand will be say half price or RM19,500 which will definitely affordable. Bear in mind a Vios will last many more years than a Saga.
So, the solution is clear – abolish car taxes!!!
no, that is not the solution. decrease the demand for car, then the price will drop.
i really like this paragraph, hoping that Gov will make a change.
…The release points out that the average population-to-vehicle ratio in developed countries (such as America and Europe) is three times higher than Malaysia because their cars are cheaper and more affordable; PEDA said if cars were made cheaper through lower excise and tax or from other means, this would ensure sustained growth for the industry while at the same time reduce household debts for the consumer…