As part of tighter rules for the third movement control order, which goes into effect today, the government has released new regulations for the distribution industry. The new regulations are aimed at reducing the alarming increase of new COVID-19 infections in the country, which has already reached a staggering 7,289 cases several weeks ago.
While most economic sectors will be allowed to continue operating, some industries, including the automotive industry, will face additional restrictions. Car dealerships can stay open as long as they provide sales, service, and spare parts. In order to safeguard consumers and salespeople, they will not be permitted to perform test drives.
Well, when we talk about buying a car during this hard time, there’s tons of reasons people will say ‘should not to’. But on the other hand, we actually need to reconsider the answer again. This is because, we need to relook at the individual’s situation first whether the person is eligible to buy that particular car or not.
What are the ‘can/cannot’ situations? Take a look at the whole article below.
#1 Having a strong financial report and background
As the normal procedure, having a strong and sturdy financial will bring you no issues on buying a new car. The biggest reason is because you are definitely going to be able to afford it. You may get affected by the MCO lockdown enforcement but if you manage to achieve an excellent credit score on your financial report, having an acceptable salary for that chosen car you wanted to buy, you are good to go. Just make sure you already calculated the risk you are willing to take and can afford all the maintenance costs that you will need to pay before you decide to buy the car.
#2 Interested to buy cars
Buying a car during this period is actually a good idea as you can save more money on the purchase price. Plus, buying a used car also has depreciation which can cost you a lot more cheaper compared to the new one. In other words, used cars are great value for money if you are able to find one that is in good condition and has been well-maintained by the previous owner.
#3 Able to wait for the production and pre-book the car early.
As we all know, production for cars is running low this year due to pandemic outrage. According to Malaysian Automotive Association (MAA), car sales in May 2021, that a total of 46,663 cars were delivered in April 2021, 11,249 units (or 19.4%) less than the 57,912 units sold in last month which leads to lesser car production in our country.
Nevertheless, if you are willing to wait until the production process recovers again then it will be no issue at all, but surely it will take some time unless you are interested in buying cars that are still in stock.
#1 Have financial issues
It is not advisable for individuals to buy cars with high financial risk especially during this hard time. You need to reconsider your purpose again whether it is a need or it just for ‘collection hobby’. As a consumer, think wisely on investing your money into a certain business. Buying a car is not a simple process. You need to consider all the maintenance costs onwards, your monthly payments, and your savings. Seek professional financial consultants to take a look at your financial situation first and check your eligibility before jump into any conclusion.
#2 Production running slow
Sime Darby Motors, the automotive arm of Sime Darby Bhd, expects the supply disruptions arising from the shortage of automotive semiconductor chips to “normalise” over the next few months.
The group, which commands 29 automotive brands, was “to a certain extent” affected by the global trend of semiconductor supply shortages, but is still optimistic of achieving better sales performance in “this calendar year”, said its managing director of retail and distribution for Malaysia, Jeffrey Gan.
With these issues, it affects the car production to run smoothly as usual which now led to lots of car dealerships not having enough stock in their business.
#3 High risk
High risk highlighted here is from various perspectives. Take a look all these questions,
1. Employment. Are you still employed?
2. If so, are you at risk of being unemployed? What’s your level of job security?
3. Is your job at risk in the coming months?
4. Are you using all your savings to buy a car?
If you are still employed but your company’s growth and reputation is at risk, then you might reconsider your decision again. If the answer is yes, you will use all the savings to buy a car then we suggest you hold your thoughts and take a step back and relook into your needs again. In this chaotic time, it may not be a suitable time for you to purchase a car as losing a job will severely affect your repayment capacity and having secure cash flow is an essential requirement before buying a car. Take a step back and think hard on the consequences of it, speak with expertise and discuss with your partner to find a better solution to this issue.
So, should you get a car in today’s COVID-19 world? Totally! But only if you fulfill most of the requirements laid out in the checklist – to be safe. Buying a car is probably the second biggest investment that you’ll make in life after getting a property. Therefore, it’s critical that you take your time and really think through the different factors that will impact your finance and purchase.