We all know it's coming. With the reduction of GST to 0%, it's no surprise that the government needs to find another source of revenue to help fill the nation's coffers, especially with such a large amount of debt to deal with. With the implementation of SST slated for September, we're seeing consumers going on a buying spree across all kinds of industries - and one such industry happens to be the automotive one.
According to Proton, there are three main reasons why you should be looking to buy a new car in these coming months.
1. The entry level segment is more competitive than ever.
When it comes to cars below the RM 100,000 mark and at 1.6-litres of displacement and below, there are a huge number of options available to buyers. But for those who are looking for a value for money proposition and are willing to trade away a bit of engine size, opting for a 1.3-litre model gives great features for a fairly low price. One such example is the Proton Saga, which comes equipped with features that were usually only found in top-spec models, things like electronic stability control and traction control. These items add huge value to the cars in this segment, making them highly competitive.
2. New cars are cheaper with GST at 0%, and loans are easier
New cars are a lot easier to get high percentage loans on, let alone loans at all. With our market becoming tighter and tighter and loan applications becoming more difficult, in many cases it's better to save yourself the trouble and go for an easier, practical solution. In addition to this, new cars are, more likely than not, cheaper due to the 0% rated GST, whereas used car values hardly changed during the transition to GST and the subsequent 0% rating.
3. When SST comes in, prices are going to go up.
As we mentioned earlier, consumers are on a buying frenzy to take advantage of the price reductions, but these price reductions won't last forever. Consider it a holiday, if you will, and the incoming SST may very well raise prices of items beyond what they were at 6% GST levels. It's important to remember that a lot of brands had their car prices actually reduce as a result of 6% GST implementation, meaning it can only go back up if SST is implemented at a 10% rate.