If you plan to buy a car, you might want to save up. However, full loan schemes for car purchases will cease to exist in August 2024.
According to a report by Sinar Harian, every customer interested in purchasing a car will have to pay at least 10% of the advanced payment. The decision to eliminate the full loan is said to be a step to overcome the problem of car sellers who are not transparent in car pricing.
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Once electronic invoicing (e-invoicing) is implemented, all invoice amounts are expected to match, effectively eliminating the situation where sales agents do not provide the real amount of the car.
Earlier, the Inland Revenue Board (LHDN) stated that they would be implementing e-invoicing in phases starting August this year, which is less than a month away.
The move is to promote automation and improve information accuracy, as e-invoicing can minimise information errors that may occur in manual invoices.
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A car salesman said that if full loans are not available, the car sales industry will suffer.
“Currently, an average of 60% of car buyers apply for full loans to buy their cars. The government might want to consider allowing a certain group of people to purchase a car with a 5% of down payment,” the salesman said.
What do you think of eliminating the full loan schemes for car purchases?
