Vehicle sales down doesn’t not necessarily reflects badly on the economic outlook, since when one is not spending money on cars, there’s much more money left to be spending on other stuff.
In fact, getting a vehicle would also usually mean that you are getting tied-up with at least a 4-year car loan, the last thing you need to keep yourself financially healthy.
However, recent development has it that MAA is trying to get the policymakers to implement car scrapping, a policy that will be affecting the way you and me in making our personal finance decision.
If this policy is ever implemented, you and me will be forced to change a car every 10 years, like it or not. And bear in mind also that we do not yet have an efficient public transport system. So it does seem that the person who suggested this “scrap metal” policy has been reporting to work without having the need to take the LRT.
The Star on the July vehicle sales…
MAA expected sales to improve in August as a result of aggressive promotions by car companies.Hwang-DBS research head Vincent Khoo said the sales decline was within expectations in view of the weaker consumer sentiment and finance companies tightening their lending rules.
“There were also fewer new mass market model launches in the first seven months of the year, which has lead to lower consumer buying interest,� Khoo said, adding that the lower value of second-hand cars was also one factor affecting car sales in Malaysia.
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