Car prices 6% cheaper on zero-rated GST

Car dealers have begun preparing promotions to showcase their brands, in hopes this interim period will drive customers to buy


Some auto companies have revised their vehicles’ prices down 6% cheaper in line with the government’s move to zero-rate the Goods and Services Tax (GST), effective June 1, 2018.

This move will be effective until the re-implementation of the Sales and Services Tax.

In conjunction with this, car dealers have begun preparing promotions to showcase their brands, in hopes this interim period will drive customers to buy.

“Now would be the perfect time to own a Volkswagen (VW),” Volkswagen Passenger Cars Malaysia Sdn Bhd (VPCM) MD Erik Winter (picture) said in a statement last Friday.

Winter said beginning June 1, VW’s highly favoured Golf GTI will be brought down to RM225,888 from the regular price of RM239,990.

The Beetle Sport will be going for RM139,488 from RM147,888, while VW’s lowest price range Polo, for RM72,488 from RM76,888.

VPCM adviced customers to place their bookings early to enjoy the low prices, as stocks are limited, and to take advantage of VW’s ongoing Raya promotion “Fuel Up Your Gaya”.

UMW Toyota Motor Sdn Bhd also brought down the prices for its Toyota and Lexus vehicles.

According to the vehicles’ respective websites, the price for the Toyota Vios will be revised to RM70,752 effective June 1; as for the Lexus IS, its price will begin at RM280,985.

“The price revision is in the best interest of our customers, UMW Toyota Motor is happy to pass on any relief and benefit from the new tax structure onto our customers,” UMW Toyota Motor president K Ravindran said in a statement last Friday.

To get more information on the reduced on-the-road prices for Toyota and Lexus vehicles, customers can call Toyota’s freephone at 1800-8-TOYOTA (869682), Lexus’ freephone at 1800-88-LEXUS (53987) or by visiting any authorised sales outlets.

BMW Group Malaysia also listed the new pricing for its BMW, MINI and the BMW Motorrad. “BMW Group Malaysia will continue to offer our customers the complete premium ownership experience, regardless of the pending announcement and confirmation from the Ministry of Finance (MoF) on the 0% GST,” said BMW Malaysia MD and CEO Harald Hoelzl.

He said for Peninsular Malaysia, customers can drive the BMW 5 series 530e Sport home for RM324,380.89, compared to the previous RM343,800 which included the 6% GST.

The government massively influenced the voters’ sentiments during the recent polls when they announced they were going to drop the GST rate to 0%. The MoF said the new rate will be implemented nationwide beginning June 1, 2018 until further notice.