Slowing property transactions in Q1 2015? Well, car sales are also slowing down its growth. Last year, a total of 666,465 units were sold. This year? A total of 670,000 is expected by Malaysian Automotive Association (MAA). In other words, almost unchanged from last year. MAA is forecasting this due to the slow numbers for the first half 2015. This number is underpinned by expectations that the second half would show better numbers. If they do not, then the total sales for 2015 is worst than 2014! I think the possibility is there, especially from the always almost negative sharing of Malaysia’s economic situation in Facebook. Thoughts would translate into actions, right? Or No?
Personally, if I need a car, I would buy a car. In better times, it would be a new car. If I feel my job is very safe, it would be a slightly more expensive car. Perhaps a Segment C car. Currently, perhaps wiser to get a second hand car instead? After all the prices of second hand cars have also been going down. What if I have a car and is working well? Answer is simple. I keep driving my current car. This explains why the numbers are definitely not going to be bullish. The number corresponds also to the lower number of transactions for properties in malaysia for Q1 2015.
However, if you were to ask if the car sales reflect a worse time? My answer is not really. I note that majority of my colleagues who are senior executives or higher who bought new cars were almost always non-national ones. Most of the time, Japanese ones. In other words, the more expensive ones. How could they buy more expensive cars if they are not doing well in terms of their earnings? So that they can save on petrol since it is said that these cars consume less fuel than a Proton Persona? (my current car) Read here: Sen wise, Ringgit foolish Unless of course, all of them are buying the more expensive car and postponing their property purchase instead? If they are, I feel bad on behalf of them. I think the decision is not the best one.
An awesome car is out of the reach of many. I meant Segment D ones like Accord, Teana, Mazda 6 and even Passat. Anyone not buying any of these cars, please stop feeling that you are on to of this world if you are driving just a Segment B car which most probably is just a taxi in many countries. Why not think how much savings from your lower car instalment can help you in your investment goals instead? Buy a good car which does not break down every few months. Do not buy a car which needs you to spend lots of attention and more money for sports rim etc, just so that your friends feel jealous of you. Truth is, what’s the gain? I am still saving for my first Segment D car in the future. Happy deciding.
written on 1 July 2015
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