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NAP & Car Prices


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Lately, car prices are the hottest topic for the past week. No matter where I turn there are always people talking about the NAP and on cars. Some ask me what I think and others assume I would get a brand new car now. Nevertheless, I personally feel all this are flaws, camouflage and some  hidden agenda behind. Let's take a common sense approach look at it.
 
1. Announcement of new NAP policy
2. Car sales tax/excise/import duties reduce
3. Car manufacturer takes a week to reduce price or formulate the price reduction. Some not even updated yet as I wrote this. (HONDA)
4. DPM ask the finance ministry to monitor the reduction as the reduction was not enough and not pass down to consumer
5. Rumour has it that hire purchase interest rate is going to go up this April. - Why ? cause manufacturer/car dealer are passing the buck/loss to bankers and bankers are passing the loss to the consumer. Finally everybody maintain the same status quo except consumer who would be at the receiving end.
 
No matter if you are a buyer/seller as long as you are the consumer then your are going to be the losing end. Some points/question I would like to highlight for transparency.
 
1. Before NAP there were always certain amount of discount offer ranging from RM 500 - RM 10k depending on the make and type of vehicle. After NAP does this still exist !!
2. Before NAP interest was quite low for certain car make but after NAP I'm sure its going to be raise to recover the commission drop receive for salesman.
3. Car dealer/salesman and people in the industry are not going to reduce their profit/commission just for the sake of passing saving. Business and economy are all a loop/circle. What goes around will come around later. With this analogy therefore I can conclude that the so called "SAVING" are going to be pass on to consumer.
4. What happen to some 2/3 yrs free full maintenance ? Maintain this benefit or take this opportunity to totally increase profit margin or reduce cost for dealer/manufacturer ?
5. Perhaps a first time buyer of a brand new car will be able to enjoy the benefit but then once he/she goes into the system the rules still applies to all. You need to sell off your old car to get a new car. Vice versa and etc. There begins your 7-9 yrs loan.
 
A case in point, I had been checking on the Nissan Sentra and Toyota Altis price for the whole year. Yes there is a reduction of a few thousand in their car retail price. But before NAP though, Sentra was RM 94xxx.00, I was given over trade of RM30k last year for my '97 Wira A/B + thrown in with discount of RM1.5k or Nismo Kit and etc. That's a huge and higher amount compare to the 5% discount now being offered. I can bet that with the NAP discount Tan Chong will not offer over trade nor further discount anymore. They have a reason to con everybody now. A license to lie with the statement "We had already reduce our price for more that 5%".
 
Finally my conclusion is the reduction is not too significant as much as the increase in 30cent in petrol. That was the greatest impact to our daily routine life. This is going to be another exercise to benefit somebody.........the minority and not the majority.


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