Buying a shirt? Try this car for size

Hari Raya car sales by all kinds of gimmicks such as 'Jualan gempak Aidilfitri' have reached a feverish pitch lately.

COMMENT

By Syed Nadzri Syed Harun

Advertisement flyers pushing an “attractive” sale of the Audi were distributed widely at last Friday prayers at the Darul Ehsan Mosque in Subang Jaya, lending some truth perhaps to the belief that Ramadan to some can indeed be a free-wheeling month for spending.

How else would it be when nobody bats an eyelid anymore towards a RM138++ per head charge for buka puasa at a hotel?

A big caution should therefore go out. They say if you set out to buy just a shirt around this time, you might end up buying a car instead. That’s why the furniture vouchers are being stuffed into your letter boxes like crazy these days since some households are in the peculiar habit of changing their living room sets every Hari Raya.

An average Audi costs nearly half a million ringgit so the promotion sheets making their rounds at the mosque must have been cleverly planned to capture this seasonal spirit of the spending frenzy.

If that is the way of the Audi dealer, just imagine what the rest of the crowd, especially the cheaper cars, are doing.

In fact Hari Raya car sales by all kinds of gimmicks such as “Jualan gempak Aidilfitri” have reached a feverish pitch lately.

Which immediately brings us to the question whether car sales, after a sluggish year, are really hitting it off now. And are prices actually coming down as the sales war seems to suggest?

The issue of car prices in Malaysia has been widely debated especially after Pakatan Rakyat turned up the heat recently by making “Turunkan Harga Kereta” as part of its election manifesto. The ruling government then responded to the issue by saying that it would gradually reduce car prices by 20% to 30%.

Now we are told the targeted car price is only being reduced gradually until 2017.

International Trade and Industry Minister Mustapa Mohamed was quoted by The Malay Mail last month as saying the price reduction was “part of a market process as a result of more efficient and competitive players in the automative industry.”

But industry players reckon it would still be a tough process because of its adverse impact on the prices of used cars (now conveniently termed as preowned cars). The reduction of car prices, it is maintained, would inevitably reduce the incentive to trade in used cars whose values would directly plunge due to lesser demand.

Then of course there is the other side — the firm plan by the government to improve the public transport system in the major cities which would without doubt result in lower demand for private cars, hence higher prices.

A big headache don’t you think? Which ultimately brings us back to the Raya car sale promotions. Are they actually offering huge discounts and lower prices?

No, not so in the exact price tag consideration. But the price war is cleverly waged on other fronts such as gifts, privileges and extras.

Look at the Nissan ad: “Duit Raya isn’t just for kids”. And then it goes on and on with a string of rebates being offered. Then there is the “Raya with the VW family” in which Volkswagen (VW) is throwing in a six-month free installments for purchases during this period.

Peugeot’s answer is its Raya drive celebration where buyers are tempted with the low interest rates for loans and the free screen-tinting.

Not to be left behind is Hyundai: “Ride in style and get rewarded this festive season”. Among the offers — free Samsung LED TV, Samsung Galaxy and free road tax and insurance.

They are all just taking advantage of a generally bigger urge. So if you are genuinely buying a car this season, you might just end up with a penthouse in a posh area, mortgages notwithstanding.

Syed Nadzri is editor-inchief of The Malay Mail. Feedback: syednadzri@ redberry.com.my