PAKATAN HARAPAN MADNESS - CAR PRICES TO GO UP !!

MCA Youth hit out at PH for imposing new tax on imported used cars

Nicole Wong questioned if move was “first step” to protect 3rd car 

government must come clean on this new tax scheme

between 20% - 39% tax on imported used cars effective March 1

From The Star here .

My comments : 

Maybe the MCA and UMNO guys are still in this recond car business and the Pakatan wants to kill them off? 

But this is really unthinking.  Increasing the tax on recond cars by 20% - 39% will only increase their prices. From there all other car prices will be affected (pushed up).

In Malaysia cars are real necessities.  Our public transport is lousy, even in the Klang Valley. In Ipoh, Penang, Melaka, Alor Setar the public transport system is worse. Dont bother asking about Tanjong Tualang or Pantai Remis.  So people need cars and motorbikes.

Thank you for the KTM Komuter, the LRT and the new MRT. The MRT stations are huge and grand. But once I have reached the station, I still need a car (or taxi) to get to my house which is 15 minutes away. Back to square one. 

In any case cars are substitute products. Meaning if you cannot buy one car - for whatever reason - you will buy another car.

People buy good recond cars because they are much cheaper than a new car of the same make and model. 

If a brand new Toyota Alphard sells for RM400k to RM500k then a recond Alphard at RM250k - RM300k+ is certainly cheaper. 

If a recond Toyota Alphard increases in price by 20% to 39% then it may reach the price of a new Alphard. 

So the people will not buy a recond Alphard anymore.  They cannot afford it. They may opt for a Toyota Camry. Or a another cheaper MPV. 

Hence demand for lower end MPVs and Camry's will increase. 

Their prices will go up. 

Or their prices will NOT go down.

When the prices of Camrys and other affordable MPVs go up, then the prices of other lower end Toyotas - and other makes of cars - will also go up.

The speed of the price increase will depend on the Ringgit size of the recond car market. In the end the prices of all cars will go up.

Congratulations to the Pakatan Harapan for screwing up our cost of living again.