{"id":32241,"date":"2022-12-02T03:59:57","date_gmt":"2022-12-01T19:59:57","guid":{"rendered":"https:\/\/carsome.my\/news\/item\/buy-car-in-recession"},"modified":"2024-07-15T14:53:19","modified_gmt":"2024-07-15T06:53:19","slug":"buy-car-in-recession","status":"publish","type":"post","link":"https:\/\/www.carsome.my\/news\/item\/buy-car-in-recession","title":{"rendered":"Should You Buy a Car in a Recession? Here Are Tips to Help You Decide on the Right Car"},"content":{"rendered":"

The economic situation in our country has a lot of us talking about what will happen \u2013 is a recession coming to Malaysia, or is it already here? Either way, many of us are feeling the pinch with rising costs of living and goods shortages, among other things.<\/span><\/p>\n

While a recession often means that we have to tie our purse strings and focus on our needs instead of wants, you might still find yourself needing to spend on big-ticket items such as a car. So let\u2019s look at what a recession means for us and how to buy a car in Malaysia during a <\/span>recession<\/span><\/a>.<\/span><\/p>\n

Will We Have a Recession on Our Hands?<\/span><\/h2>\n

First, let\u2019s get this out of the way \u2013 predicting a country\u2019s economic growth requires experts to analyze various factors including our GDP (gross domestic product) growth, interest rates, the housing market, and also international factors that affect trade. And even then, accurately predicting it in advance is still challenging. That\u2019s why the forecast of when a recession will hit ranges widely among economists.<\/span><\/p>\n

When we talk about a recession in Malaysia, many experts agree that we\u2019re unlikely to enter a real recession. This is due to the fact that Malaysia\u2019s GDP growth is significantly <\/span>contributed by the services and manufacturing<\/span><\/a> sectors which are both more domestically oriented.\u00a0<\/span><\/p>\n

The services sector constitutes the bulk of our economy and can buffer against turbulence in the global markets. Manufacturing, on the other hand, contributed to 24.3 percent of the GDP in 2020 making it a sector that\u2019s vital as a buffer and in helping the economy recover.\u00a0<\/span><\/p>\n

While the forecasts of if and when a recession will happen are mixed, many agree that we\u2019ll see an economic slowdown due to global geopolitical affairs (in Ukraine, just to name one), supply chain and labor issues, and a general global economic slowdown. What this all means is that Malaysia is more likely to experience slower economic growth or a mild recession, though it always pays to be prepared.<\/span><\/p>\n

Read More:<\/b> Lemon Law to Protect Used Car Buyers in Malaysia?<\/span><\/a><\/p>\n

What Happens during a Recession?<\/span><\/h2>\n

A recession is defined as a period of economic decline during which trade and industrial activity are reduced. Though it\u2019s generally identified by a fall in GDP in two successive quarters, the length of the downturn can vary and also extend beyond two quarters.\u00a0<\/span><\/p>\n

So what happens if a recession hits Malaysia? Here\u2019s what you can expect.<\/span><\/p>\n