No full financing makes it difficult for young people to buy cars

There are rumours going around that the government will implement an e-invoice system for vehicle sales starting August, which will effectively eliminate full financing for car purchases.

As a result, buyers would need to pay at least 10 per cent down payment.

If this measure was implemented, it will be seen as burdensome because not everyone could afford to provide a down payment, especially young adults starting their careers.

They would need to save for a long time before being able to buy the vehicle that they wanted.

Most young people relied on full financing because their starting salaries would usually only suffice to cover essential needs.

Moreover, car dealers acknowledged that with the new regulation, vehicle sales were expected to decline.

According to them, out of 100 vehicles sold, usually 60 per cent were buyers who used full financing services.

Therefore, the government should thoroughly study the matter before making a decision.

The government should also devise mechanisms to reduce the burden on the B40 group and young people if this new regulation was to be implemented.

One of the steps the government can take to assist those in need was to lower the deposit to five per cent so that the amount required for the down payment was not too big.

In addition, the authorities can provide rebates to vulnerable groups based on the national database (Padu) who wished to purchase vehicles.