Tight Malaysian lending rules affecting car sales, Perodua

Compact car manufacturer Perodua has asked Bank Negara Malaysia to ease up on tight loan conditions for hire purchase of cars.

It lamented that these conditions are already affecting car sales.

Perodua Managing Director Datuk Aminar Rashid Salleh said that registration of new cars in January dipped by 15-20 per cent while new orders fell five per cent owing to the tighter conditions.

Previously, processing for car loans was based on a buyer's gross income, but since January, the central bank has directed banks to base loan approvals on net income, in efforts to curb household debt.

Processing hire purchase loans also takes longer, between 7-8 days.

"Perodua is the rakyat's car catering for the masses, especially the lower income group, small businesses or parents wanting to take their children to school," he said.

He cited the 660 cc Perodua Viva costing about RM26,000 as being affordable to a wide cross-section of the public.

Although he supported Bank Negara's move to curb household debt, Aminar said the central bank should look at other mechanisms to address such debts and not impose credit tightening measures for car purchases.

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Tags: loan application, car sales, household debt, car loans, compact cars, Bank Negara, Perodua