Following the GST strike-off and amazing Festive season deals, Automotive sales is expected to pick up from now until the month of August. The present until August is an absolute most feasible time to purchase a new ride, before the new SST (Sales and Service Tax) kicks in in September.
According to various sources, vehicle prices could go up following the return of SST, as mentioned by the President of Malaysia Automotive Association Aishah Ahmad in her interview with the media in May. She mentioned that with SST in effect, car prices are set to go up with an induced 10% SST.
In the used car market, due to the stiff competition, dealers generally absorb the GST, therefore, the pricing won’t be affected by the zero-GST. For buyers with a tight budget, the used car market seems more appealing as the cost comparison looks fairly more reasonable and practical. However, the process of buying a used car could take a longer time and require a more ‘complex’ procedure, compared to the experience of buying a new car since loan approvals are fairly easier to obtain and interest rates are lower as a new car poses lower risks, hence, resulting in higher loan amount.
Under such circumstances, most car manufacturers come up with various promotional activities. Consumers with limited budget will have a hard time deciding which model to purchase. Take a 1.3cc car for example, buyers are spoilt for choice in the market, when making comparisons on the maintenance, space, safety and stability, and particularly the pricing. Currently, both National makes Proton and Perodua are turning up the hype on their basic ranges. While, prominent brands like Peugeot, Mazda, Honda, Toyota, just to name a few, are already starting zero-GST with huge savings, to round off a clear discount on major models in their respective line-ups.