Automobile prices stable; buyers prefer credit

Right-hand drive cars on exhibition for sale in Yangon.  Photo: Phoe Khwar
Right-hand drive cars on exhibition for sale in Yangon.  Photo: Phoe Khwar

Domestic Car prices have stabilized after a remarkable rise since six months ago, and an increasing number of buyers are preferring to purchase them on credit, according to automobile dealers in Yangon.
“The prices of cars remain stable. While there are fewer right-hand drive vehicles as their imports are no longer permitted, domestic buyers prefer them,” said U Aung Than Win, the chairman of the Myanmar Automobile Purchase and Sale Enterprise (Yangon).
Right-hand drive cars such as Toyota Probox, Honda Fit, Honda Wish, Toyota Kluger, and Toyota Alphard, with prices ranging from Ks15 to 40 million, are in demand, he said.
“As right-hand drive vehicles are fewer, their price is expected to rise in the market. Although, some buyers have shown an interest in purchasing completely knocked down (CKD) or semi knocked down (SKD) cars assembled in Myanmar,” he added.
The number of buyers purchasing vehicles through instalments has risen 40-50 per cent this year from last year, said U Min Min Maung from MMM Car Sale Center.
“Some Suzuki car sales centers are offering 5-year-instalment plans. Some buyers have shown an interest as they can get brand new cars on credit. However, the total amount of interest over the years is too high,” he said.
“To buy a vehicle on credit, buyers have to verify their income, which must exceed the monthly instalment. Buyers can take credit from their banks or through other financing schemes. The rate of interest is based on the period of the loan. At present, Suzuki Ciaz, Ertiga, and Swift dealers are offering monthly instalment plans,” he added.
German and Chinese automotive manufacturers are preparing to enter the Myanmar market to sell cars assembled under the SKD and CKD system.
This means local buyers seeking brand new cars will have much to choose from. According to market watchers, the second-hand and old automobile markets are also expected to see steady growth.
During the Tazaungdine Festival, automobile sales were cooler than in the previous months, according to car sales centers. The automotive market seems slower than last year owing to high taxes on imported cars and the new automobile import policy on late models, market watchers said. Yangon residents are also factoring in the shortage of parking space before deciding to shop for a car, they added. (Translated byEi Myat Mon)

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