More reason to celebrate
WE are closing in on this year’s Merdeka Day celebrations, and with that, the tax holiday we have been enjoying will come to an end. Some car brands have already run out of stock.
Even if you choose to buy a specific make or model now, you might still end up with a bigger bill once you receive your vehicle.
With the new tax structure and its effects on new car prices still uncertain, it is wise to make the most of the tax holiday and rebates on offer now if you are planning to change cars.
Capitalising on this, dealers nationwide have had a field day coming up with interesting promotions for this month.
Here is a list of the type of promotional strategies car companies will use to entice you into signing on the dotted line.
Rebate
Malaysians love rebates, and what better way to lure clients than with generous cashbacks? This will allow you to work on a lower downpayment for the vehicle since the amount financeable remains the same as before the rebate.
Therefore, you can choose to either lower your monthly commitment with the same downpayment and receive a rebate, or keep the original monthly payment rates and save the upfront money for a year’s worth of insurance and tyres.
Free service
During the tax holiday, dealers are offering a double combo to prospective buyers by throwing in a free service package. When you see a free service offer, however, do not rush in just yet. Scrutinise what they have to say about the deal.
For starters, does the free service offer include the cost of parts and labour, or just one of the two?
It is also important to know how many kilometres the free service package covers.
If it says three years on the brochure, read the fine print and determine if those three years are defined by mileage.
Get these details right or you will end up receiving a service bill you were not counting on.
Finance offers
Instead of offering cash rebates, some dealers may offer a lower interest rate.
This could significantly help in reducing the monthly payment amount on your hire purchase.
It is especially valuable when you choose a higher loan amount with a longer duration.
These plans can be quite lucrative, as your savings could come up to a five-digit figure in some cases.
Trade-in value
Some dealers may guarantee a good trade in price and provide trade-in values that are higher than normal.
This could seem like an amazing deal, but do understand that your old car’s value is still a constant as far as the second-hand market is concerned, depending on the condition of the car.
The rest of the hike in trade-in value comes with offsetting the old car’s value against your new car’s cost. Every dealer will have a margin to play with in every car sold. Some use it to give you a better trade-in value.
It is up to you as the consumer to decide if that margin is to be used to lower your hire purchase repayments for the new car or to get a better deal for your old one.
Free gifts
Do not be fooled into accepting free gifts at face value. Some of them can be exchanged for cash rebates while some may offer free gifts on top of other offers as an overall package.
Scout around – even among dealers of the same brand – to see who provides the best deal and “gift basket” for you.
After all, the decision is yours, so make the best one.
Promotions offered by dealers may not be limited to just one item. It could be a combination of a few promotions for one car. Do not be afraid to explore every option on the table.
As a consumer, it is your responsibility to ensure you check the entire “buffet spread” across various brands to ensure that your money is going to the right place. Ensure that your motoring purchase this Merdeka season leaves you feeling as liberated as our country.
Promotions offered by dealers may not be limited to just one item. Do not be afraid to explore every option on the table.