Price protection schemes from three auto firms
PETALING JAYA: At least three car companies have introduced price protection schemes as customers await the new tax structure to replace the Goods and Services Tax on June 1.
The three are national automaker Proton, Nissan and Subaru.
Other major car marques such as Perodua, Toyota, Honda, Volkswagen, Peugeot, Kia, Mercedes-Benz and BMW are still contemplating their next move.
The 6% GST will be zero-rated and replaced by the previous Sales and Services Tax (SST).
However, the Government has not mentioned the rate for the SST and if it would come into force on June 1.
As such, many are holding their car purchases until details on the SST are known.
Before GST was introduced on April 1, 2015, the SST for vehicles was at 10%.
All Proton cars sold and registered from May 16 to 31, 2018, will include service vouchers equivalent in value to the difference between the current and new price of its various models after GST is zero-rated.
“Proton is supportive of the new Government’s efforts to reduce the cost of living for the people.
“Despite the zero-rated GST coming into effect only on June 1, we have decided to reward our customers immediately as a token of gratitude for their support and in the spirit of the holy month of Ramadan,” said Proton vice-president of sales and marketing Abdul Rashid Musa.
TC Subaru Sdn Bhd has stated that unregistered as well as new bookings of all Subaru models will be price protected from May 11 until Aug 18, 2018.
If there are price hikes before registration of any booked Subaru car due to changes in the tax regime, TC Subaru will honour the original, lower price.
In the event of a price drop, TC Subaru customers will get service vouchers equal in value to the price difference (up to a limit of RM3,000).
“For example, if a vehicle’s price is reduced by RM1,000 after the change in applicable taxes, this will be traded into a service voucher worth RM1,000. For unregistered bookings, should later prevailing prices drop at registration, the booking price will be adjusted correspondingly.
“If the booking price was RM100,000 and the prevailing price at registration is RM99,000, the lower price of RM99,000 will apply,” said TC Subaru.
Edaran Tan Chong Motor Sdn Bhd (ETCM) sales and marketing director Christopher Tan said prices of passenger cars could see an increase if SST is re-introduced at the former rate of 10%.
“Almost all car brands, following the move from SST to GST three years ago, saw a slight drop in prices.
“So, if SST is implemented at the old rate of 10%, logically there will be an increase in prices. It could be a better time to buy cars now,” Tan said during the launch of the new Nissan Serena 2.0L S-Hybrid on Monday.
He said ETCM’s price protection scheme for Nissan vehicles this month will see customers getting a refund for the difference in prices, if prices for new vehicles drop after GST is zero-rated.
“On the other hand, if car prices go up after GST is removed, then those who buy their cars now will gain,” he added.