fbpx
Connect with us

News

Car Companies Offering 0% Down Payment Promos Are Actually Breaking the Law

Published

M'Sian Car Companies Offering Zero Down Payment Promos To Customers Are Actually Breaking The Law - World Of Buzz 2
Right image for illustration purposes | Source: FMT & Money Crashers

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

If you’ve shopped for cars before, you would probably have seen signs at car dealers proclaiming things like, “0% down payment” or “No deposit needed” to attract more buyers. Well, in case you didn’t know, businesses that do this are actually breaking the law!

M'sian Car Companies Offering Zero Down Payment Promos To Customers Are Actually Breaking The Law - World Of Buzz

For illustration purposes only | source: the star

According to Harian Metro, a recent report stated that companies using sales tactics to promise zero down payment to entice buyers is manipulating the consumers because they just want to hit their targets. The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) said that more people would want to buy cars as they do not need to save the usual 10% of the car’s retail price as a deposit.

The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) Selangor deputy director and chief enforcement officer, Azman Adam said that buyers should be aware that these offers from the car companies are actually illegal.

It's Illegal For Car Companies To Offer Zero Down Payment Promos To Cu - World Of Buzz

Source: fmt

“We found dealers that have manipulated a vehicle’s price through the selective naming of its model variant before they offer the zero-deposit purchase method to customers. If buyers need to make a down payment of 10% out of the vehicle’s price, it can help to demonstrate the customer’s ability to pay for the monthly installments, while helping to reduce his or her monthly commitments,” he added.

“In addition, the 10% down payment helps the customer avoid being blacklisted or declared bankrupt if they are unable to service the monthly repayments. Companies that do not comply are punishable according to Section 31 (1) of the Hire-Purchase Act 1967,” he explained.

M'sian Car Companies Offering Zero Down Payment Promos To Customers Are Actually Breaking The Law - World Of Buzz 1

For illustration purposes only | source: money crashers

On March 4, Azman said that they conducted a statewide operation and caught 11 car dealers in Selangor who violated the law, FMT reported. A total of 35 car sales companies selling new and used cars were checked during the operation which took place from 10am to 6pm.

Based on the Act, Azman explained that if caught and convicted, the companies could face a maximum fine of RM100,000 for the first offence and a fine of not more than RM250,000 for the second or subsequent offence. The companies have been ordered to stop all ongoing zero down payment promotions and they are currently investigating.

Now that you know, make sure you don’t accidentally break the law by accepting these promotions!

 

Also read: Report: Some Used Car Dealers in M’sia May Be Working with Illegal Money Lenders to Con Buyers

Report: Some M'sian Used Car Dealers Suspected Of Working With Illegal Money Lenders To Con Buyers - World Of Buzz 4

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Collage 89 Collage 89
News12 hours ago

Johor Government May Implement a 4.5-Day Workweek in the Near Future

A 4-day workweek sounds ideal, but a 4-and-a-half day workweek doesn’t sound bad either. Johoreans may be in luck next...

My Post 1 2024 11 21T160023.537 My Post 1 2024 11 21T160023.537
News13 hours ago

“UPSR get D, SPM can get A” – PMX Responds to BERSIH Giving Him a Grade D in ‘Report Card’

Prime Minister Datuk Seri Anwar Ibrahim has opened up about BERSIH’s ‘report card‘ on his administration’s performance in conjunction with...

My Post 1 2024 11 21T114442.032 1 My Post 1 2024 11 21T114442.032 1
News17 hours ago

PDRM is Offering 60% Off Selected Traffic Summons at Govt’s 2nd Anniversary Event This Weekend!

In conjunction with the MADANI government’s 2nd anniversary on 24 November (Sunday), the Ministry of Home Affairs of Malaysia (KDN)...

Collage 17 1 Collage 17 1
News2 days ago

MCPF Calls for Vape Ban, Warns Addiction to Substances Can Lead to Unhealthy Behaviours Like Theft

The Malaysian Crime Prevention Foundation (MCPF) is urging for the sale of e-cigarettes or vape devices to be banned or...

Feat Image Lesen Feat Image Lesen
News2 days ago

Anthony Loke: Road Users in M’sia May Have to Pay for Physical Driving License Cards Starting Next Year

Transport Minister Anthony Loke Siew Fook today iterated that the Government will continue with the implementation of digital driving licenses...

Collage 15 2 Collage 15 2
News2 days ago

Filipino Couple Caught Living & Working Illegally in Malaysia Using Fake MyKads That Cost RM250 Each

A Filipino husband and wife were arrested during a raid on November 19 at a house in Pandan Indah yesterday...

Feat Image Apple Ind Feat Image Apple Ind
News2 days ago

Apple Offers to Increase Investment in Indonesia Tenfold to RM446 Million to Lift Country’s iPhone 16 Series Ban

Previously, we shared how the Apple iPhone 16 Series is banned from being sold in Indonesia until the tech giant...

My Post 1 2024 11 20T144359.263 My Post 1 2024 11 20T144359.263
News2 days ago

BERSIH Names Ismail Sabri the Best PM Since 2009, Calls Out PMX for Lack of Urgency with Reforms

In conjunction with the upcoming 2nd anniversary (24 November) of Anwar Ibrahim’s administration, The Coalition for Clean and Fair Elections,...

Announcement

Latest Videos



TRENDING TODAY