The Inland Revenue Board of Malaysia’s (LHDN) e-invoicing initiative, due to come into force on August 1, is set to have a major impact on new car purchases, given that it will essentially outlaw 100% loans (or “full loans”) that are common in the industry. Despite this, the Malaysian Automotive Association (MAA) does not expect the scheme to adversely affect sales figures.
Speaking to media during the Q&A session at yesterday’s market review event, president Mohd Shamsor Mohd Zain said this is because Bank Negara has already set a minimum downpayment amount that car companies and banks need to abide by.
He added that to get around this, many financial institutions have introduced various flexible financing options, including step-up financing, to make car purchases more affordable without resorting to full loans. “I’m sure that once [e-invoicing] is up, there will be new programmes and packages that banks will introduce,” Mohd Shamsor said.
Additionally, certain banks appear to be still able to offer 100% loans to government staff, Mohd Shamsor added. Ultimately, MAA sees the e-invoicing scheme as a good step from LHDN. “We feel that the implementation of e-invoicing will bring positive changes in terms of efficiency and transparency.”
Despite this potential headwind, MAA has seen fit to not just maintain its original sales forecast of 740,000 vehicles for 2024 but revise it upwards to a new target of 765,000. This comes after it recorded strong first-half sales of 390,296 units, a 6.6% increase over last year’s already record-breaking performance.
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Anwar menang, staff gomen senang
Yes, support govt staff, not the public. With implementation like this, more people cannot fork out the 10%, which can reduce sales. The only problem is that bank’s so called formula isn’t working. Car loans cannot take up more than 30-40% of your net salary. Considering fuel, maintenance, parts and consumables, that formula is rubbish. Many tends to default their loans. The whole financial system is failing. Govt should have reduce car tax and road tax. It a liability for the bank’s perspective, but it’s an essential tool for us to go to work, errand runs and so on. You want to say take public transport, how well connected are we? Not to say to be in par with Singapore as Singapore is an island, but well connected enough to do our daily runs. The govt is failing us.
penjawat awam boleh pulak. no wonder la atas jalanraya kereta bar semua no plate D.
How about flexi loan for car? Hope that our banks will come up with that option.
government servants are the ones that default their loans due to the full loan and ease to get loans. just take a look at the LPPSA mortgage loans that they took. They are the worst in financial management.
Isnt LPPSA payment via salary deduction?
I mentioned salary deduction and not standing instruction on saving account.
Yes, they have easier access to loans or financing. However most of their facility if related to special gomen servant packages with certain banks have the repayment done via salary deduction.
I agree there are still facility which is defaulted. This could be due to;
1.Person no longer a gomen servant.
2.Facility taken not from ‘panel’ institution thus payment not via salary deduction.
3.The party in charge of deducting salary and channelling the payment to respective lender screw up. I have witness a facility being 2 month in arrears
even when the person salary is deducted on the dot every month.
Anyway, if gomen servant can still get full loan for vehicles from commercial institution then its double standard. One can say its one of perks for serving the gomen but if gomen instruct commercial institution to do so against the rule then gomen is abusing their power. I enjoyed better loan package when serving with a bank before but only with my own employer, this is perks. My bank never instructed other bank to offer the same package. If the bank themselves want to offer then its ok as banks know the risk. Even 10 years ago most defaulters are gomen servant, business owners with poor cash management, and bankers themselves.
Everything for gomen staff..what about private sector?
Buat ni cepat, what happen to lemon law??? lambat pulak..
they always have 2 systems!!
no matter which gov comes into power, they are all 2 sides of the same coin!!!
reformati, reformati, reformati,reformati
Wow gomenstaff boleh pulak (because why not kan)