If you’re looking to buy a new car to take advantage of all the year end promotions currently ongoing, then otofest 2012 will be a good place to drop by. oto.my’s inaugural otofest 2012 sales event will happen next weekend – 8-9 December 2012 at Cheras Auto City on Jalan Cheras.

The oto.my team has put together some great deals at otofest 2012. Cheras Auto City’s dealerships have marked down their prices for year end sales and BMW Credit Malaysia’s Alphera division has come in with competitive financing rates as well as innovative step up financing plans.

Step up financing significantly lowers the monthly cost of ownership of a car. Your monthly repayments are significantly lowered because of two unique properties of step up financing, compared to normal hire purchase repayments. This frees up your monthly cashflow for other uses.

otofest 2012’s step up financing package by Alphera is structured as a 7 year loan. First of all, your first year’s monthly repayments start off lower than normal hire purchase – about 30% lower than normal hire purchase repayments. Your repayments then increase about 10% every year until you hit the 5th year, upon which it stabilises and continue until the end of the loan.

The whole idea here is that you can buy a more upmarket car earlier, and increase your repayments as your career progresses with salary hikes every year. This can be very useful in scenarios where you can choose to use step up financing to upsize the class of MPV that you’re planning to purchase so your family can travel in better comfort. A Wish buyer can get an Estima or Alphard instead.

Secondly, the finance repayment is designed so that at the end of the loan, you have not repaid the loan completely. In this case, at the end of 7 years, the 84th instalment represents about 13% of the total loan amount. This is when you either pay off the loan in cash, or you most probably will sell the car to repay the loan in full, with cash left over for the downpayment for your next car.

A word of advice – step up financing works great for cars that have high resale values so you’ll always ensure that your loan repayments keep up with the depreciating value of your car. So don’t use it to buy a car that is known for high depreciation.

On the bright side, the step up financing packages that we’ve worked with Alphera to offer at otofest 2012 are very conservative as the balloon amount is only 13%, while some similiar packages in Malaysia offer a balloon amount up to 30%. And for the same reasons, terms and conditions apply when offering step up financing – certain car models will not be eligible.

Here are some example deals that will be up for grabs at otofest 2012:

Car Model For Sale otofest Deal Price Normal Loan Step-up Year 1
2009 Audi A5 2.0 TFSI Coupe RM183,000.00 RM2,296.00 RM1,608.00
2008 Toyota Alphard 2.4L RM196,000.00 RM2,259.00 RM1,581.00
2008 BMW X6 xDrive35i RM388,000.00 RM4,870.00 RM3,409.00
2010 Audi A8 4.2L V8 RM445,000.00 RM5,585.00 RM3,909.00
2011 Mercedes-Benz E350 Coupe RM340,000.00 RM4,267.00 RM2,987.00

There are of course plenty of cars for sale other than the examples we listed above – nearly 700 new and used cars. You can browse all otofest 2012 cars for sale at oto.my. We’ve also identified them in the search results with a special otofest 2012 tag in the bottom right corner of the car’s search result listing.

Be sure to book your weekend of 8-9 December 2012 to drop by otofest 2012 at Cheras Auto City! We’re trying very hard to make it the best year end recond and used car sales in town! Look at the map below for directions, or if you have any other queries about otofest 2012, please feel free to call our otofest hotline at 018-2037607 :)