There is no discrimination against Proton car buyers according to Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz. Her response was a reply to the Proton Edar Dealers Association Malaysia (PEDA)’s allegations that banks are putting Proton customers in a high risk category and treating them with third class treatment.
“We had already had a meeting with the banks a few months ago and they said there is no discrimination against Proton car buyers. They said no, that is not correct,” said Tan Sri Dr Zeti on the matter.
The allegations were made by PEDA president Wan Ahmad Sepwan Wan Abd Rahman last month in a measure to try to get help for Proton dealers, which PEDA says 93% of them are losing money every month. PEDA requested for a minimum quota of Proton loans approved to prevent discrimination, indirectly forcing banks to make financial decisions and evaluations politically instead of being results and profits driven.
Related Posts:
Dealers want minimum quota of Proton loans
Looking to sell your car? Sell it with Carro.
OFKOS THEY NEVER ADMIT IT. IF NOT FOR SURE THE GOVT. BAN THEM…
I think its not discrimination against P1 buyers, but more of the fact that banks are using CCRIS or similar credit check software which can see the credit payment history of the individual applying for a loan. P1 must have a high level of NPL (Non Performing Loans), but then P2 should be facing the same problems right?
do agree with maibatsu thunder.
What do you expect? Proton used to offer RM0 deposit + Free 3 months installment. Basically just sign up, use the car for FREE for 3 months and let banks pull back the cars. Proton's desperate tactic only spoils the market and deny genuine buyers from getting the loan they deserve.
its actually so many past buyers that categorized as npl. so it affected the new buyer….
I think this shows up as an even bigger issue. Cars are too expensive, and many are getting into 9 year loans. 9 years is a long time for quite a number of things to happen. If an individual looses his job, there is no way one can service a loan that saps 500-800 per month.
It may be so that the bulk of these NPLs are for proton cars, since they attact certain demographics. Probably a sweet spot. Most perodua cars however come in at a lower entry price, which makes them easier to pay off, and tend to depreciate less. People who take a large long term loan are usually already barely able to make ends meet, and thus are higher risk in the first place.
People that can or prepared to buy more expensive cars are usually more financially secure (though not always the case). Those that can afford an Accord for example wont cross shop a Waja or Perdana or probably not take as much loan/longer duration.
Banks are out to make money. Like it or not. I dont blame them.
bank..
u pat late 1 day already getting interest
u pay early 1 day.. do u get any?
One does have to ask the question if PEDA should reduce the number of dealers instead of calling these petitions.
I almost see a Proton dealer at every street corner. Its certainly overpopulated. THere are only so many cars the market will take, even if you take out the unoficial general boycott of Proton cars. This is certainly a problem of thier own making.
So instead of blaming the banks, they shoudl just reduce the amount of dealerships to bring the selected higher performing ones back to profitability.
dat y they still sell saga n wira
cheaper konon nya
tis whole thing wont happen if P1 managed to outsource its vendor to countries wit cheaper labor.
imagine if 10 years ago Proton oredi married Lotus then amik anak angkat China automaker.
surely we can produce cheaper car.
so long proton…….
u cheat my father n uncle now u deserve to die a horrible death!
hahahahaahaaha (EVIL LAUGH)
Will Proton just die already and stop trying to find somebody to bail them out. The rakyat have for many many years, paid through their teeth buying overpriced cars, taking up financially disastrous loans, so that Proton can exist.
I'm pretty tired of listening to their pitiful "clutching at straws" attempts to find a way out of the massive hole that they found themselves in.
The problem has always been the protectionist policies and Proton's failings. We are now seeing the ill effects. The problems with dropping sales, tumbling used car values, tighter financial control from banks, etc. All these ills are the fruits of the government's labour of love to protect Proton.
Feeling the heat now, Proton?
when earning big bucks last time… where's the complain? suck so much already….and now start to lose money… there goes the crying baby asking for milk again…
why can't find a solution on own instead of asking for direct help?
need to find ways to stop the losses and also generate new income…instead of putting up hands and cry for help and expect what, miracle happen?
sigh…….
sad to read those comment…
During their glory days never want to improve themselves now want to blame others for their stupidity ! This is not even the full force of globalisation and they are shitting in the pants ! Imagine not more protection for them ! If you cant take the heat, get out of the kitchen !
kah kah kah, taktik makan diri sendiri, P1 owner credit ratings average are CC+, C categories due. Last time deposit RM 500 boleh keluar kereta……..
I already anticipate maaaaa………Adik Nostrodamus……..
Mana bank mau bagi loan……….kah kah kah…….
proton……proton……….. when u hav problem, u just ask help and din try to solve the problem urself……..the worst part is that u stil pin point ppl for the problem………
i think the M hav spoilt by the m'sia government…………that's y make them cant think and problem solving…………..they oni know how to take things from government………..never work hard for it………….coz every things is provide by government………….if the proton is not management by those M………..sure is a success company………
to the government of m'sia……………stop giving proctection to those M………..let them work hard for wat they want………….
Isn't this post about Proton buyers and banks? Somehow it becomes a hate thread.
The way I see it, the loan issue is not a problem if customers can show some commitment. For example, paying 10% or atleast 5% of the car price as down payment. Some consumers insist of paying NOTHING up front for a car and expect 100% full loan. If you compare with other brands, how many of them offer RM0 deposit? As far as I remember, the lowest Toyota offered was RM3000 deposit for an Avanza. Of course, if you paid such a big amount, you will be more commited to pay the loan. For those who paid RM0, who cares if the bank takes away my car after few months, no loss to them.
Come on, do you think the bank will approve if you can't even fork out deposit as a commitment. The banks have too many NPL cases that it has to resort of being picky. Even if you have bad credit card records, it can affect your chances of approval. Don't forget, banks are also doing business, they don't approve loans blindly. If a customer can't pay and disappears, it is a big loss.
As for Proton customers who are having loan problems, stop whinning, and show some commitment when it comes to loan application. If their records are clean and are willing to pay 10% deposit, there is no reason why banks would deny such a good customer.
agree with brakefader..
i think those in PEDA can't think like a proper car dealer.. i mean look at mofaz when AP was not in the picture.. how he manage it? find a niche of course.. how does the car dealer in KJ do it? look at them… bringing in cars (non-national) to the market.. these PEDA guys should really work for these guys 1st to learn the trade rather than just jumping on board the train.. now lets wait for the wreckage..
hhmm.. by the way.. off topic… where can i go to check out Fiat latest offering in M'sia.. and who have driven the latest Ranger? Paul, any chance for you to update us on the Ranger test drive soon?
Most of the Proton potential customers comes from middle-low to low income earner. Some time ago, when you purchased a house from Maybank and buy a car from RHB Finance, RHB would not know that you have a house loan at Maybank (unless your loan get defaulted for 6 months). At that time, they will be able to get loan from RHB Finance without problem.
But now with all the Centralised system, coupled with 3rd party rating agency (CTOS), loan application become harder. Even if you not a defaulter, it does not guarantee you that you will get the loan.
Assuming you earned RM2K a month, minus EPF and Tax, your net salary become about RM1.7K. Under old system, if this customer buy a house and let say monthly installment RM700 from Maybank. RHB Finance would not know and they consider RM1.7K is a net income, hence your car loan for model like Wira/Iswara/Gen2 will be approved without any fuss. Now with the centralised system, RHB will know abt your housing loan and they will straight away deducted RM700. Now your net income become RM1,000K and RHB won't approved loan with monthly deduction more than RM400. They will request for a guarantor or straight away reject the application.
There is positive side because public won't be able to spend more than what actually they can afford. On the hand, car makers like Proton will suffer because most of the Proton buyers are fall in this type of customers. (most but not all).
It just show how poor Malaysian people are. The cars prices are way too expensive and if banks were to adopt debt risk policy like developed country i.e. Singapore, Japan, US, UK etc then it will a major disaster to Malaysia automotive industry as a whole. Except Perodua (thanks to Myvi) and some high end marques (DMC, BMW), all manufacturer are now facing super hard time to survive. Pak Lah should do something to sort it out (not pretending nothing happened like a dumb duck).
e-by
"Pak Lah should do something to sort it out (not pretending nothing happened like a dumb duck)."
Im sure pak lah try to help la by negotiate with VW… remember.. is that our PM's job or Proton? some says without proton we will be farmers. so i think that's y our PM have to step in.. or else we cannot reach develop status without proton… saga saga saga lagi… high-line or low-line u choose…
The comments posted are certainly varied and covers a wide spectrum of arguments. Some contributors are also very brave to post stuff that could potentially get Paul into trouble.
There are basically 2 entities that need to be involved here. Proton, the manufacturer and PEDA. Right now, whatever comes out of Proton directly affects PEDA. So if junk is being produced, naturally consumers will not want to own one.
So what PEDA needs to do is to communicate that with Proton instead of trying to go the other way around by getting the banks to be more lenient and potentially suffer losses. I believe that if Proton comes up with good quality products, people will buy them as an alternative to cars from Korea or Japan and there won't be a need to get the government to be involved in this.
Can you imagine the Air-Cond Association of Malaysia asking the government to increase the output of greenhouse gasses from factories so that the climate will get hotter so that more people will buy air-conditioners? Sounds ridiculous, doesn't it? But that's exactly what PEDA is doing.
It is not called discrimination, it is just fair business decision based on statistics. No banks will discriminate quality products and quality buyers.
No shame at all, memalukan bangsa, this is daylight bank robbery.
sigh again…….
I think most proton buyers have bad creadit background, lower salary, insufficient bank deposit, that's why it is hard to approve loan for these buyer.
I think this is the fair system, which is also used at US, we called it credit score, the higher the score, the easier you get loan, and the lower apr rate you can get, but the way to calculate the credit score is more complicated.
Btw, I said most not all…
1 thing that the G should do.. Cut the TAX of new cars! One the car price went down.. Loan will be little, and ppl can pay it.. When car are cheap, start to scrap old cars and set the new car emission, safety, environment regulation like all New car by 2010 must be LEV, 2 air bags and ABS as standard!
I am worried about the global warming issue, is gonna come soon.. What i hope is everyone to step forward to help our mother earth.. less pollution, more recycle, less cost!
A classic example of the PEDA's protectionism mindset. A minimum quota of Proton loans!! It makes me laugh at the idiotic idea dished out by this man. The best joke for economist and bankers. Ridicously moronic. I bet even the serious and brilliant Tan Sri Zeti will smirk a smile…
"1 thing that the G should do.. ", i don't think the government will do that LittleFire85. Why? It's because of the Proton the government introduce the tax in the first place. We see Proton as a national car. I think it symbolize more than that. I think it simbolize Control and Balance. Government need something to keep us line. That where Proton comes in. Hence the tax. Look at our roads full with motorcycle. Don't you think these people could benefit from safer method of traveling? But no, more cars means more pollution, roads have to check or replace frequently than usual. Highway will need 3 lane instead of 2. And more cars means more fuels. If this is the reasons, anybody think this justify? Or maybe I'm thinking too much.
But just like LittleFire85 said, "New car by 2010 must be LEV, 2 air bags and ABS as standard!". Or maybe government think survival of Proton are more important than the safety of Malaysian road users? Thousand of Proton workers are more important than ability of millions of Malaysian to have better equip car and more safety car or the riders to have better protection at the road? I don't have to tell you math of that. Kindergarten kids might not compute that but anybody who used the roads everyday might.
I'm a motorcyclist, eventhough sometimes i drive my mom's car. Maybe you think i made this comment because i'm one since i mention it a lot. I've been in accident, twice, thank god I had no major damage, but I don't think I need to lose a limb to realize how dangerous road traffic are. I remember Star focus the risk of motorcyclist on front page. 17 times. The last time I heard government declared anything was dangerous is cigarette. Look how high the price of that now, I'm a smoker FYI. I wonder what the government will do something about this. Something about cars will be involved. Proton are cars also. Out Prime Minister mention in the news a couple of weeks (or months I don't recall but he did) that the developed country have automobiles to but not as much as accidents as we did. I think somebody forgot to mention to him about the ratio of motorcycle to cars.
Proton have become an icon of Malaysian last century. Pride also. Government will come up with everything they have to maintain the icon and pride. The government will have the CONTROL and BALANCE will be preserved.
Or maybe I watch to many secret agenda or conspiracies movies.
maibatsu_thunder, banks do not judge a car buyer/applicant credit worthiness by the model of the car he/she is buying. And Banks do not classify motor vehicles hire purchase NPLs based on car models. Even CCRIS doesn't display information on car models, just monthly payment track record (how many arrears, balance left, etc).
To ganz, if u dont want to be charge extra interest for late payment (even 1 day), seek for islamic financing. There is no such thing as compounding interest late charges as adopted by the conventional banks.
BrakeFader, you're damn right. Banks should not be blamed for not approving car loans when the applicant doesnt show any commitment to pay some downpayment.
Applicant's basic salary must be at least three times higher than the car monthly instalment, that's the rule of thumb. Other loans and credits burdened by the applicant will further deteriorate his/her credit rating.
Just for reader info.
This is one of the more refreshing threads with minimal blind bashing from both parties.
Thumbs up for the contructive posters!
Quoted “We had already had a meeting with the banks a few months ago and they said there is no discrimination against Proton car buyers. They said no, that is not correct,†said Tan Sri Dr Zeti on the matter.
Guys, READ BETWEEN THE LINES la…especially the last sentence. She is saying "no" ( means a lot of things depending on the question posed ) and "not correct" ( means not entirely true but got some truth la ). Dr. Zeti maybe the next MP for the ruling party….very pandai kata kata la. I agree with "e-by" comments.
wahlaueh…
Another shaming request by P1 related parties,
—————————————————
NoToLowQuality said,
May 3, 2007 @ 9:46 pm
Im sure pak lah try to help la by negotiate with VW… remember.. is that our PM’s job or Proton? some says without proton we will be farmers. so i think that’s y our PM have to step in.. or else we cannot reach develop status without proton… saga saga saga lagi… high-line or low-line u choose…
—————————————————
Without P1, now we will be Asia biggest auto assembly hub, not tomyam land. VIOS will be ~50k++… sure be delicious cake for us…
Lucky for VW just take malaysian's baby(p1) for a walk only but not permanent. VW has wise management to turn down the deals…haha… What actually can pak lah do about this??? He is just a politician not pure businessman.
mad_guy said,
May 3, 2007 @ 5:30 pm
proton……proton……….. when u hav problem, u just ask help and din try to solve the problem urself……..the worst part is that u stil pin point ppl for the problem………
i think the M hav spoilt by the m’sia government…………that’s y make them cant think and problem solving…………..they oni know how to take things from government………..never work hard for it………….coz every things is provide by government………….if the proton is not management by those M………..sure is a success company………
to the government of m’sia……………stop giving proctection to those M………..let them work hard for wat they want………….
"proton……proton……….. when u hav problem, u just ask help and din try to solve the problem urself……..the worst part is that u stil pin point ppl for the problem………
i think the M hav spoilt by the m’sia government…………that’s y make them cant think and problem solving…………..they oni know how to take things from government………..never work hard for it………….coz every things is provide by government………….if the proton is not management by those M………..sure is a success company………
to the government of m’sia……………stop giving proctection to those M………..let them work hard for wat they want…………."
I think pak lah want VW throw money inside for him and the P1 management to play with until the money habis then cry more.. But VW is not a very soft parents.. they give u $$$, They want management power and money control.. If have one million dolar, you give it to G to develop. Do you think G will use it all for develop.. 50% go into their officer pocket.. 50% only goes to develop.. So do u think VW trust Malaysian G to used his resources freely without any control..? What i felt less is the Design department and quality department of P1 need to remap.. We want more quality and more decent design cars.. recruit more international designer or quality control stuff.. Look at china automobile market and see… This world is cruel if we are not in front.. So G?
Sometime pride kills… but brain lives.. Think before you make ur next move G!
I think this scenario is the result of partly the confidence of buyers, partly the quality of proton cars, partly also the market is getting more competitive, more choice and lastly, alsoa the catagory of buyers for proton cars. I dont think the bank should be blamed.
i think the bank negara governor and the banks dont even need to answer this question by PEDA.
with china car manufacturers up and running, established brands from japan and europe starting to fill in the cheap car market(besides expanding in all the rest of the vehicle categories)….there is no market internationally for proton and also locally in msia. from here on, proton will go down the drain and thats guaranteed.