Car prices, going down or up due to Ringgit?

A few weeks ago, someone told me that the car prices are going up due to the Ringgit weakening. I told him that I think the prices would have to depend on demand and less of the Ringgit. He wanted to debate further but I told him I have little interest. He is entitled to believe what he wants to believe from what he reads. Yesterday, my brother told me about Proton’s discount due to it’s 30th anniversary. Obviously this is a gimmick due to its slowing sales but if it helps in sales why not? Is Proton the only one doing this because of its slowing down sales? Following are some other discounts or offers:
Honda – Up to 8 months free instalments. Yes, depending on the model that you are buying, its a minimum of 3 months of free instalments for the CRV and up to 8 months for the Accord. There is even a free Year-End Surprise gift as well as a chance to win a RM2,000 pre-loaded debt card.
Infinity – Maximum performance and minimum payments. It’s Q50 Premium Sports Sedan 2.0L Turbo starts with an instalment of just RM1,999 per month! The car is also fully imported from Japan. For the richer ones, better be fast as the offer ends 30th November 2015.
Peugeot – BIG 5 Ownership specials. 5 Years free service, Peugeot Protect and Warranty and Unlimited Mileage. If you choose Peugeot 508 THP, you get RM6,000 savings and if you are aiming at Peugeot 408, then it’s up to RM16,000 rebate. You get Leather seats for Free too.
Toyota – WOW Year-End Deals. Many models are now offered with attractive cash rebates and lots of free stuffs. For financing, 2-Tier Plan. Get to pay lower amounts for the first 6 years! The final 3 years are higher but if you want, you can also trade in your Toyota car for a new Toyota car then!
peroduaPerodua -RM2,500 cash redemption when you buy a MyVI. RM2,000 cash redemption when you buy an Alza. This is ONLY valid till 31st October which meant that their offers are ending soon.
Volvo – My father-in-law’s favourite car brand which he has recommended to me for the past 10 years. It’s now “Enjoy 10% off when you purchase a new Volvo V40 T5, V40 Cross Country or XC60 T5 Polestar Edition.” How much is this 10% off? Well, let’s just say it’s nearly the price of a Proton Saga. 🙂
List is non-exhaustive. Many more are offering special discounts too. Okay, enough of offers. If you need a car, take your pick. Ringgit will not be the main deal-breaker. It’s definitely the demand. Increase the prices and lose more orders? Fixed costs are still continuing even when sales are down, please remember that. It may be better to sell more with lower margins. Perhaps I would like to add, it may also be prudent to get a cheaper second-hand car. Make sure it’s  one of those low maintenance type. These days, it’s best to preserve as much cash as possible. It should create a chance for you to grab some potential opportunities along the way until the world economy starts showing better signs and the ringgit stabilising after that ‘green’ coloured currency has had its rate increase. Oh yeah, according to Citibank’s latest forecast, the world economy is heading for a recession in 2016. That’s just months away. Better beware brother. (BBB).
written on 24 Oct 2015
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