It’s painfully clear that whenever the prices go up, it will pass over to the consumer. As a consumer, the question now is how to maximize the consumer welfare as welfare are measured cardinally in terms of ringgit and cent.
The evidence on consumer behavior suggests that, with respect to prices, consumers respond to interest rates in choosing a borrowing institution, thus to value and to be able to recognize several of a bank’s attributes when searching a borrowing institution, the consumer not only should be selective but let the bank hear and understand your issues and share your concern.
The only way that we’re going to lower the interest rate is by lowering our actual demand for borrowing car loans.
Maybank hire purchase senior manager Nor Siah Othman said the bank had experienced a drop of about 40% in car loan applications in the past two months due to higher rates.
She also advised car owners to restructure their loans to stretch the monthly payments longer after a few years of repayments if they find it a burden to service their loans.
A freelance car salesman identified only as Teo said a buyer taking a RM42,000 loan would have to pay about RM54,000 over seven years - about RM4,000 more compared to the RM50,000 paid when the interest rate was 2.7%.
AmBank group public relations manager Norlidah Abd Rahman said not all banks charged as high as 4.3%.
“If the car bought now did not carry extended warranty under comprehensive insurance, the interest rate could be as low as 3.6% - 3.9% too,” she said.
Kuala Lumpur and Selangor Car Dealers and Credit Companies Association president Khoo Kah Jin said interest rates for new cars were not that high at between 3.5% and 3.7%.
He said there was no reason for used car interest rates to be as high as 4.5% - 7.5%.
Khoo said the association had always pushed for the interest rates for used cars to be only 1% higher that of new cars.
The evidence on consumer behavior suggests that, with respect to prices, consumers respond to interest rates in choosing a borrowing institution, thus to value and to be able to recognize several of a bank’s attributes when searching a borrowing institution, the consumer not only should be selective but let the bank hear and understand your issues and share your concern.
The only way that we’re going to lower the interest rate is by lowering our actual demand for borrowing car loans.
Maybank hire purchase senior manager Nor Siah Othman said the bank had experienced a drop of about 40% in car loan applications in the past two months due to higher rates.
She also advised car owners to restructure their loans to stretch the monthly payments longer after a few years of repayments if they find it a burden to service their loans.
A freelance car salesman identified only as Teo said a buyer taking a RM42,000 loan would have to pay about RM54,000 over seven years - about RM4,000 more compared to the RM50,000 paid when the interest rate was 2.7%.
AmBank group public relations manager Norlidah Abd Rahman said not all banks charged as high as 4.3%.
“If the car bought now did not carry extended warranty under comprehensive insurance, the interest rate could be as low as 3.6% - 3.9% too,” she said.
Kuala Lumpur and Selangor Car Dealers and Credit Companies Association president Khoo Kah Jin said interest rates for new cars were not that high at between 3.5% and 3.7%.
He said there was no reason for used car interest rates to be as high as 4.5% - 7.5%.
Khoo said the association had always pushed for the interest rates for used cars to be only 1% higher that of new cars.
1 comment:
semua barang naik, kini bunga juga naik. apa nak buat?
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