Not only Proton and Perodua owners need 9-year loans with our high selling prices
It has been reported by AmInvestment Bank that approximately 80 percent of Proton and Perodua car buyers in Malaysia opt for a full nine year loan when buying their vehicles, with some even extending the period further if permitted to do so. These are supposed to be cheaper alternatives to more expensive cars so what is going on here?
Well, the investment bank, in a research note, said that Proton and Perodua cars are the top choice for demographics with moderate to lower incomes. The vehicles are also considered as a consumer necessity rather than a luxury for such income demographics yet they are still not affordable to the target market. Why?
Moreover, AmInvestment Bank also said that applications and approvals for car loans are currently maintaining a strong rate, especially for the Perodua Myvi. It said that demand for this vehicle is very high, with delayed deliveries extending into the previous year, driven by buyers rushing to purchase which raised ownership costs.
The research firm said that purchases for used vehicles are also still high at present and show no signs of being affected. This was because, in mid-2023, some manufacturers faced supply chain issues, resulting in lower production, thereby causing excess demand in the used car segment.
The investment bank also said that based on observations at car showrooms, there is high interest shown in Battery Electric Vehicles (BEVs), with some potential buyers considering fuel savings compared to electricity costs. Now that there are some slightly affordable options, we may see more 9-year loans popping up.
With the still developing public transport in Malaysia, cars are necessary but with our salaries staying low and living costs constantly rising, especially this month with SST going to 8 percent, car ownership is becoming increasingly more impossible.
Either the government needs to review wages again or inflation and the cost of everything needs to be reduced to keep up with the average Malaysian’s frankly meagre salary.
We got all this from NST and their full article is linked here. Thank you NST for the information and images.
