Most car companies have run out of ‘tax-free’ car stocks.

Many showrooms cleared out well before SST kicks in on Sept 1

KUALA LUMPUR: It is just over a month before the GST-free period ends, but most car companies are reporting no more “tax-free” car stocks.

Several major car showrooms are already overbooked and customers requesting GST-free cars are being turned down.

However, there are car companies which are accepting orders before the GST-free period ends for delivery past the Aug 31 deadline.

In such cases, the car company concerned would absorb the new tax imposed on the car by the Government.

Annison Francis, a sales representative with the Mazda showroom in Taman Tun Dr Ismail, said there was no more stock for GST zero-rated cars.

However, he said his showroom was still accepting bookings during this period until the new Sales and Service Tax (SST) kicks in on Sept 1.

“If customers place their bookings during this period and get their loans approved, we will fulfil the zero-GST price even after Sept 1,” he added.

Honda salesman Nicholas Foong, who works with Tenaga Setia Resources in Section 51, Petaling Jaya, said his showroom “was totally cleared out”.

Popular models such as the Honda Civic and CR-V topped the booking list, he added.

“Since June 20, we have been directed to explain to each potential customer that there is a possibility that they might not get their car before Sept 1 when the SST kicks in,” said Foong.

“We only have several hundred units coming in per month to fulfil orders, so those who have already paid their booking fee and have the loan documents ready get priority.

“Even our display units have been sold. I’ve got friends selling other car brands who are also working in empty showrooms.”

Rosemilia Mustafa Kamal, who works at NZ Wheel’s Mercedes-Benz showroom in Jalan Kapar, Klang, said demand differed according to the models.

“For the C200 sedan and GLC200 and GLC250 crossovers, there is no ready stock as these are popular models. We are in fact overbooked for these,” she said.

Business manager Carrie Lourdes said she had been eyeing a Honda Civic when the GST zero-rate period was announced.

“But when I was told that the waiting period would go well beyond Sept 1, I decided to just wait and see the newer models which are due to be launched by the end of this year and in 2019,” she added.

Engineer Eddie Tuen decided not to wait and got himself a Toyota Camry Hybrid at a GST-free price.

“My road tax was expiring mid-July and I decided to go for a car with good resale value,” said Tuen.

Without GST and getting a further discount on top of that, Tuen said he saved RM16,000 on the purchase price.