Can save money buying new vehicle now?
The reduction in car sale tax will end on 31 December 2020. This is the government’s initiative to help the automotive industry to boost sale during this pandemic period. Despite the fact that buying a new car is going to increase your liability but having a car in Malaysia is almost a necessary considering the public transport system in Malaysia is not complete. There are still a lot of places, even in the city, not accessible via public transport. Hence, if you are thinking to buy a new vehicle, now is the time to consider this because of the saving.
How much money can the purchaser save exactly? The purchaser will save the full sale tax (10% sale tax) for the locally assembled car (also known as CKD Completely Knocked-Down car) while the purchaser will save 50% of the sale tax (5%) for imported car.
| Nett Vehicle Selling Price = Government approved selling price + 10% sales tax + margins Final Vehicle Selling Price = Nett Selling Price + Handling / Inspection fees + Accessories + Road Tax + Insurance |
The exact discount will be lesser than the 10% or the 5% as the discount of 10% is not on the final vehicle price. The 10% sale tax is calculated based on the government approved selling price as above. So, don’t expect the price is 10% cheaper, the actual saving could be only 3% to 6%. For example, the famous Toyota Camry (2.5V), before the tax rebate, it was selling at RM196,888, till end of December, the selling price is RM 188,763. The saving is about RM8,000+ (4%+). Check out some other car prices here.
Evaluate your ability to pay the car installment before electing to buy a new car. If it is a must to buy a car, buying it now can give you more discount now.
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