Scrap "Project Scrap"

You knew this was coming from me!

A proposal was forwarded (ultimately to all Malaysians) to scrap their 15-year old car for a RM5,000 voucher, which can be used as downpayment to purchase new Proton cars (see NST 23 April 2007 - "Used cars clamped by drop in sales"). The proposal, drafted by the Federation of Motor and Credit Companies Association of Malaysia said the move would improve sales of Proton cars in an effort to enhance our automotive industry.

Improve sales my foot!

I am not sure if the scraping of the car for the RM5,000 voucher is voluntary or mandatory, but either way, would you buy a car if you knew it was going to be scraped in 15 years time? Everybody wants to pay for something that they will eventually own. I admit, value of cars depreciates unlike properties, but like everything you have paid for, it must, to a certain extent belong to you. This proposal is taking away ownership from the car owner.

Also, I wouldn’t want to be tied down with car loans for the rest of my life. And how many people can actually afford the monthly payment of a brand new car? Most of us are on the banks’ black list anyway.

If you had bought a brand new car at age 28, you’d have no car by the time you reach 43 years old. You’d only have RM5,000 in a voucher. If you decide to use the voucher, you’d be car-less again by 58. You’d retire with no car but RM5,000 - this time in a useless voucher.

So much for enhancing the automotive industry!

I am only viewing this from a car-for-transport perspective. I could write another paragraph on “classic” cars alone. But enough to let you know that my 23-year old car is worth RM15,000.