THE directive issued by The Ministry of Finance with regard to down payment at the time of purchasing automobiles was greeted with less enthusiasm by local consumers. The directive issued out years ago was previously unknown or simply dismissed by most consumers due to the lack of enforcement by the Ministry.
Three days ago, the Second Minister of Finance emphasised the need for enforcing the directive by finance companies during the launching of Baiduri Finance new branch in Beribi, where he reiterated that creditors of finance companies are required by the Ministry of Finance to pay the minimum deposit as stated for their car purchase.
In response to this, a bank officer who wishes to be known as Hj Abas, said that the enforcement of this law could strike a devastating blow to the one of the most thriving industries in the country. "I fully respect the government's authority and its rules and regulations to better the lives of the citizens. But sometimes, I feel there are restrictions on businesses that need to be reviewed," he said.
He added that maybe the authorities should look at imposing deposits on luxury vehicles only and leave out the economical ones. Most of the problems are caused by people who purchase expensive luxury vehicles and are not able to pay the instalments.
A car salesman, who also wishes to remain anonymous, also emphasised that it is vital that deposits be introduced only on the luxury models to make sure that only those who can afford them actually purchase them in order to protect the finance companies from the risk.
He also added that during his 12-year experience in the industry, most of his sales are generated from either vehicles with no deposits imposed or very minimal should there be any. He added that the first question a person ask when he intends to purchase a car is "No deposit?". This demonstrates that the most decisive factor for prospective buyers to make up their minds are the zero retainers.
"I am not sure of how we are going to sell a car especially luxury automobiles when most people are not willing to impart with a big sum of money at one time. They would rather loan the amount and pay it in instalments," he said, adding that they should look into the feasibility of enforcing deposits on the fastest growing industry besides oil and gas in the Sultanate.
Matali Hamid, a low income earner, reiterated that he only earns $700 a month. If he does not own a car and decide to buy one, he will not be able to afford the deposit as the lump sum required would put a toll on his savings.
"If I was a high income earner, it would be a different scenario. I only earn a measly pay but a car is necessary for my daily runs. It will dent my savings if deposits are made compulsory. I have children to send to school, my wife to pick up and so on. I feel sorry for people who earn as much as I do and are now trying to purchase a car as I know how they would feel," he said.
"Although my comments are little one-sided but I cannot rely on public transport to bring me around and we in Brunei definitely need to have at least one car
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