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Why MORE people will be buying new cars in 2021?

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driving an expensive car

There’s this forecast that more people will be buying new cars in 2021. Are you buying one?

Car is always a popular topic. This article was viewed by many. Car loan savings of 9 year vs 5 year loan? With the MCO and CMCO, it seems that people are driving less. If this is the case, then why do people still buy cars? There are lots of reasons but generally it revolves around need and wants. By the way, the term need in this context is beyond just having a car to move from point A to point B. It may also be a necessity for business or career too.

Seriously, a top management in a multi-national company may just want to drive a better car and that’s why they were given car allowances to do it, usually rather generous too. There are definitely many other instances such as in the sales line. It’s tougher to tell the new people to ‘be like me’ and close more deals if they see you were driving just an old car… So, yes I agree that both these business / career needs are necessary and should be classified as need, together with the need to drive from point A to point B.

buying new cars
Photo by Angelos Georgiou on Pexels.com

So, is new car sales in Malaysia going up in 2021? Despite us being in the Movement Control Order (MCO) 2.0?

Article in themalaysianreserve.com. FITCH Solutions Country Risk and Industry Research maintained its forecast of a 6.9% increase in total new vehicle sales in Malaysia for 2021 despite the reintroduction of the Movement Control Order (MCO 2.0). It said, “For the purpose of our forecast, we assume the likelihood that easing the restrictions will take longer than the predetermined two-week period.”

“We maintain our forecast of a 6.9% increase in total vehicle sales in 2021, on the back of our 2020 estimate of a 15% decline, which would result in 2021 sales remaining below their 2019 pre-pandemic levels, reaching just under 550,000 units.” Do read the full report in Article in themalaysianreserve.com

Important note

Whether it is because of need or want, people could only purchase cars if they actually have the means to do so. Whether they could continue to pay for it 12 months later is another matter but at the point of purchasing that new car, they could afford it and banks were willing to lend to them after some financial background checks. This meant that people have a job or businesses were doing well enough to afford that new car. This is a very important sign for the economy yeah. In bad times, nothing of such would happen.

Sentiment is key when fundamental is fine

Many articles talk about potential recovery because people love to have hope. Even more articles highlight all the negativities because people love to read bad news and they then have topics to talk about. Actually, it’s equally important to just write facts and tell about the situation so that the sentiment would just be ‘business-as-usual’ versus one where everyone stops buying and this affects everyone in the near future or one which is speculative in nature where people are no longer investing but they were speculating.

Thanks for reading. kopiandproperty.com knows that bad news get more views but we are okay with fewer views from sharing actual numbers too.

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Next suggested article:  Property market poised to recover in 2H 2021

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