Opinion - What happens to car prices when SST is implemented?

By CARSIFU | 18 June 2018


SUBANG JAYA: According to the market trend in the past, the two months starting from Hari Raya will be a low season for the car market.

Therefore, looking at the trend, the Malaysia car market is expected to revive in August.

However, the recent zero-rated GST is foreseen to change the situation and we believe that now is the best time for consumers to purchase a new car as the implementation of SST will likely take effect in September.

According to various sources, vehicle prices could go up following the return of SST, as mentioned by the
Malaysia Automotive Association president Datuk Aishah Ahmad in her interview with the media in May, “Car prices will increase when 10% SST is in place.”

In the used car market, due to the stiff competition, sellers generally absorb the GST, therefore, the pricing won’t be affected by the zero-rated GST.

For consumers with a tight budget, the used car market may be more appealing as the cost comparison seems more reasonable and practical.

However, the processes of buying a used car can take a little bit more cumbersome compared to the experience of buying a new car since loan approvals might be 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 a limited budget will have a hard time deciding which model to purchase.

Take a 1.3-litre car for example. Consumers are spoilt for choice in the market, when making comparisons on the maintenance, space, safety and stability, and particularly the pricing.

We feel that the Proton Saga is the clear winner in all those comparisons - it is spacious, equipped with electronic stability control and traction control for the premium model and offers great ride and handling - a key characteristic of a Proton car.

The excellent ride and handling, provide a remarkable driving experience, making the drive on highways so stable, comfortable and swift as compared to its direct competitors.

Its low maintenance, however, is the key factor for consumers in choosing the Proton Saga over its close competitors.

PROTON is currently offering the Saga from below RM30,000 for its nett selling price*.

It is the lowest in its segment and is the best price offered in the last 10 years (well, 12 years, actually!).

Proton Edar chief executive officer Abdul Rashid Musa
Proton Edar chief executive officer Abdul Rashid Musa

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