That car you want? 4 months left to get it without the car sales tax.

That car you want? 4 months left to get it without the car sales tax.

Sometimes a new car is really necessary investment

People say buying a new car is not a clever decision. We are spending money into something that depreciates. Actually, it really depends on how we want to look at the decision yeah. A close friend has to buy a luxury car (brand starts with B) because it’s not possible to motivate her sales people to sell more, get more commission and then… drive a Vios? So, for her, it’s really an investment into her future. The car is necessary.

A company loves their CEO, right?

A company will buy a luxury car for the management team NOT because they love the CEO lah. (maybe a bit) However, they will buy the luxury car so that the customers will think highly of the CEO. The luxury car will also help the company with its branding and status. Seriously, this is also for the company’s benefit. People may have less confidence with the company if they could not even afford a proper car for the CEO and if they saw the CEO arriving at the meeting place in his 12 year old Persona.

Many other valid reasons to buy a car

Before everyone now thinks that we should only buy a car for these reasons, let me say this too. If we earn enough money to afford a luxury car (luxury car is a minimum Segment D), we should proceed to buy and enjoy the car. Always be good to ourselves first.

If we just needed to buy a new car to show our friends that we are more capable than them, then go ahead and buy one too. If we need to buy a car because the current one keeps breaking down, please go ahead too. If we like to buy a new car for our parents, then this is a super reason to buy too. Just remember… sales tax exemptions are ending in the near future yeah.

Article in themalaysianreserve.com Finance Minister Tengku Datuk Seri Zafrul  Abdul Aziz reminded Malaysians that there are four months left to buy locally made or imported cars and enjoy tax incentives.

He said, “Under Budget 2022, the car sales tax exemption remains the same as before, that is 100 per cent sales tax exemption on locally assembled passenger cars (CKD).”

He added, “Meanwhile, a sales tax exemption of 50 per cent is given to foreign assembled passenger vehicles (CBUs) including MPVs and SUVs, including new imported CBUs and used imported CBUs.”  Article in themalaysianreserve.com

Overstretching financially remains high risk

Regardless of how valid the reason to buy a car is, just need to remember not to overstretch because no one knows if unforeseen circumstances may unfold. Covid-19 was one of those. We may suddenly lose the ability to service the car loan and lose both the car and also our financial freedom too. If we could afford RM1,000 for a monthly car loan repayment, how about getting one for RM600 instead? The extra RM400 savings every month will help a lot in unforeseen situations.

All the best and yes, do support the car industry by buying a new car. We need more new car sales transactions if we like to go back to the typical 600,000 car transactions every year before the arrival of Covid-19. Perhaps that next new car could just be an EV (electric vehicle) too.

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Image by Toby Parsons from Pixabay