Car dealers give massive discounts

JAKARTA. Ahead of the end of the year, brand holder agents have started massive car selling. The target is: to jack up car sales, which were sluggish during the 10 months in 2016.

The brand holder agents offer various attractive promotions, starting from discounts, low interest rate even to 0%, as well as low credit installment with a long term tenor. The promotions are expected to meet the target of sales.

PT Honda Prospect Motor, which is the brand holder of Honda offers installments from IDR1 million for a unit of Honda Brio Satya. Honda also cut the total down payment (TDP) to only IDR 16 million R18 million for New Honda Mobilio and Honda BR-V, respectively. 

Furthermore, Honda Prospect Motor also offers a 0% interest rate for two years and one year for Honda Jazz and New CR-V, respectively. Recently, 65% of Honda’s consumers are using credit scheme as the payment instrument.

“The promotion helps Honda to meet the target of sales,” Marketing & After Sales Service Director PT Honda Prospect Motor Jonfis Fandi told KONTAN on Friday (28/10).

Jonfis divides car buyers into three types of character. First, those who want to have low down payment. Second, those who avoid long term debt so that they prefer to take two years or three years repayment periods.Third, the consumers who want to replace their old cars with the new ones to have lower repayments.

Honda is massively offering promotions to achieve the target of selling 180,000 units of cars by the end of this year. The promotions include the reduction on interest rate, since the leasing interest rate remains unchanged, whereas the interest rate of bank loan has decreased. “So that we provide subsidy to reduce price”, said Jonfis.

Another company, Nissan also offers similar program ahead of the end of the year. General Manager Marketing Strategy and Communication Division PT Nissan Motor Indonesia Budi Nur Mukmin said that Nissan offers a 0% interest rate with two years tenor for purchasing Serena and X- Trail. Nissan also provides cheap credits for purchasing Nissan March and Grand Livina.

Consumers may also choose the options for affordable installment or low down payment. Nissan offers the promotions to reach the target of selling 21,116 units of cars and secure a 1.9% of market shares by this year.

Meanwhile, Daihatsu focuses on offering a long term credit up to seven-year tenor for the new brand, namely Sigra. “With a long-term-tenor, the repayment will be lower”, said Marketing and Customer Relation Head Division PT Astra Daihatsu Motor Hendrayadi Lastiyoso.

According to Hendrayadi, based on experience the method is effective to cope with market sluggish. Let alone, this year Daihatsu sets the target of selling 167,800 units of cars.

Promotion program is not only to do with price discounts and the ease of installment. Vice President Director PT Toyota-Astra Motor Henry Tanoto said that consumers are also attracted to buy a brand of car with free accessories. However, the provisions of free accessories usually complements other promotion programs, such as credit programs with a long-term-tenor and lower repayment.

Henry said that this year Toyota sees to sell 370,000 units of cars. He also expect that the promotions will be effective to meet the sales target. (Translator: Muhammad Farid)