Give us more cash-for-clunkers

PETALING JAYA: Consumer associations say there should be a higher cash rebate should another cash-for-clunkers programme be introduced.

Most consumer bodies The Malay Mail spoke to felt that if the programme was to be re-introduced, the government should allow a wider mix of vehicles to be included in the scheme, instead of allowing only Proton  cars to be traded in.

The scheme, introduced last March under the Second Financial Stimulus, offered a voucher for RM5,000 to  encourage owners of cars 10 years old or more to scrap the vehicles and buy a Proton car.

Referring to a letter from the Proton Edar Dealers Association Malaysia (Peda) published in The Malay Mail last Tuesday, which called on the government to reinstate the cash-for-clunkers programme, consumer groups said it would ensure a win-win situation for the people and car manufacturers.

"It's a good idea because indirectly, it can help the economy as well. A higher cash rebate for those who would like to buy a new car should be implemented if the government plans to reintroduce the programme," president  of the Federation of Malaysian Consumers’ Associations (Fomca) Datuk N. Marimuthu said.

A proper study should be made before any final decision is made.

"Nobody who owns a car worth RM21,000 wants to get only RM5,000 as cash rebate if he chooses to trade it in.

"It would be a good move for the  government to increase the cash rebate according to the vehicle model, and also value the vehicle based on what it is worth at the time it is traded in," Marimuthu said.

National Consumer Complaints Centre (NCCC) chief executive officer Muhammad Sha'ani Abdullah echoed a similar view, adding that the scheme could also help improve and increase Proton's productivity.

"If the programme is re-introduced, it should ideally benefit the lower-salaried group," he said.

Sha'ani said the cash-for-clunkers programme would also increase the sales of local cars and at the same time, help to spur the country's economy.

Consumer Research and Resource Centre chief executive officer Datuk Paul Selvaraj, said the scheme would enable potential car buyers to keep their options open.

However, Selvaraj believes greater focus should also be given to the improvement of the public transport system as this would benefit everybody in the long run.

Peda in its letter said Proton car sales would be affected this year by three government policies — a spillover from the Second Financial Stimulus introduced in last March; the revised National Automotive Policy announced last October; and Budget 2010.

It said the Second Financial Stimulus helped to sustain car sales last year despite the recession through the cash-for-clunkers policy, which attracted 32,000 applications.

However, funds for the scheme were exhausted by October, seven months after its launch, resulting in only about 15,000 applications being approved while the rest were given an less attractive offer.

This led to a 30 per cent drop in bookings, especially for the Proton Saga. Peda also said the RM5,000 vouchers for scrapped cars were only partially disbursed to dealers by the government, further exhausting their working capital.

The momentum gained from the scrap-old-cars programme would be lost without any continuity, it added, especially with Malaysia's average vehicle age being relatively high.