Car Repossessions High At 1,200 A Month, What Is Causing This?
Unsurprisingly, the majority of repossessions in Malaysia are from younger Malaysians
Far too often, people get caught up in the excitement of owning a new car and make impulsive decisions without properly assessing their financial capacity. Well, these people quickly learn that actions do indeed have consequences. However, is this truly justifiable? Let’s examine the case of vehicle repossessions in Malaysia to see.
Moreover, according to revelations by the Malaysian Consumer and Borrower Dispute Resolution Association (4 PM), an estimated 1,200 vehicles, both cars and motorcycles, are being repossessed monthly, with the vast majority of those affected being young adults. This is not surprising as inflation has outpaced salary increases recently.
This repo epidemic, as it has come to be known, has left many questioning the financial stability of Malaysia’s future generations and the potential for a broader economic decline. Of the staggering number of repossessions, a mere 40 borrowers manage to reclaim their vehicles.
At the same time, the rest are left to navigate the treacherous waters of financial uncertainty, unable to convince banks to extend their payment periods. However, the problem extends beyond external factors. Financial mismanagement, particularly among younger Malaysians, has also played a significant role in this crisis.
On top of that, many young Malaysians often take out loans to finance lavish holidays and lifestyles they can barely afford, only to find themselves drowning in debt when reality catches up. This is definitely true so the fault is not entirely on the economic situation of the country but rather half the fault of the young generation and half the fault of the country’s financial state.
Sadly, the young generation are learning this lesson the hard way as they watch their prized possessions, the very symbols of their perceived success, being towed away. While this is justified in some cases, some just cannot afford to keep their car because their salary is too low and I feel bad for those few.
We got all this from CompareHero and their full article is linked here. Thank you CompareHero for the information and images.
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