Buyers in a jam as cars become popular items

Buyers in a jam as cars become popular items

By Stevie Emilia

JAKARTA (JP): Replacing her old Corolla sedan was what Rina
had in mind two years ago. But the crisis and chaotic political
situation, complete with street protests and disorders, made her
cancel her plan, although the money was there.

And now, after witnessing a smooth general election and the
People's Consultative Assembly's General Session, she thought it
was the perfect time to switch the car that was bought for her by
her parents.

Unfortunately, her timing was not as perfect as she had
thought. She is not the only person who had such a plan. It turns
out that other people have also waited to do the same thing:
buying a new car. Again, Rina will have to wait until at least
next year to get the car she desires, a 1998 Corolla sedan.

"I withdrew my money from my deposit account to buy the car,
but when I went to a dealer, the car that I wanted was not
available and they told me to wait for three months," the single
international NGO executive, who declined to reveal her full
name, told The Jakarta Post.

"It's true that I can get the car I want after waiting, but I
can't even pick its color ... "

But after some consideration, she finally gave up and paid a
Rp 10 million booking fee to guarantee the car's delivery.

"I called several car dealers, but the situation was the same.
I would have to wait. So rather than waiting much longer, I
decide to take the offer although I'll get the car in February,"
she explained.

Dodo Hamdani, an employee in a design company, said that he
switched from his earlier plan of buying a Kijang van to buying a
new Karimun, simply because he did not want to wait until next
year.

"I didn't want to wait without knowing for sure that I would
get the car. So I took the available one. Besides, the price is
acceptable to me," he said.

He bought the Karimun at a price of over Rp 70 million, while
the Kijang van that he wanted was over Rp 100 million.

The current upturn in the car retail industry, mainly in the
capital city, has been credited to the calm political situation.
It has been greeted with a large smile by car dealers who felt
the pinch during the economic crisis.

Family cars are not the only ones with a long waiting list,
expensive cars also have one. For instance, those interested in
buying a new BMW series model, worth around Rp 350 million, have
to wait at least until March next year to get their desired car.

The country's largest automobile group, Astra International,
reported an 85 percent increase in its domestic and export sales,
up by 54,980 units in the first 10 months of the year compared to
the same period last year.

The company's director Rudyanto Hardjanto said in a statement
in mid-November that Astra's domestic car sales of Toyota, Isuzu,
BMW, Daihatsu, Peugeot and Nissan makes were 31,392, up 8 percent
from the same period last year. Its car exports, notably the
Kijang van, reached 25,126 units, compared to only 703 units in
the first 10 months of 1998.

"Domestic car demand is steadily on the rise this year as the
public's confidence in the social and political situation,
especially after the June general election, has improved and
interest rates have fallen."

Waiting

This rising demand for new cars was confirmed by Noni
Nurcahaya, a sales employee at Sun Motor's car dealer in
Fatmawati, South Jakarta.

"Many customers want to buy cars, such as the Mitsubishi Kuda,
but they have to wait since we don't have stock here while the
demand is high," she told the Post.

The dealer, she added, still has Lancer or Gallant sedans.
"But they (the buyers) can't choose their colors."

Serious buyers were told to wait for around three weeks after
paying a booking fee of Rp 5 million. A gasoline Mitsubishi Kuda
is offered at Rp 126 million, while the diesel one costs Rp 128
million.

She said that her buyers bought new cars for various reasons,
either for personal or company use. " Many people want to change
their cars, maybe because the situation is safe now," Noni said.

At Adira Daihatsu car dealers in Jl. Pasar Minggu, South
Jakarta, the situation is not much different.

"We're running out of Isuzu's Panther vans. Interested buyers
have to pay Rp 20 million in advance to get the car delivered in
two months ... but they can't be picky about colors," said Elis
Herawati at the dealer's sales counter.

A Panther is offered at between Rp 90 million to Rp 137
million.

However, paying in advance does not guarantee one will get the
car at the price at the time the booking fee was paid.

"It's only a promised delivery without a set price. We still
have to see next year's prospects, for example, whether gasoline
prices will rise or not ... ," Elis explained.

But she assured that so far, her car dealer had always been
successful in delivering the car in less than two months.

"Sometimes, if we get the required car sooner, we'll deliver
it right away," Elis said. "But if we can't deliver in two
months, all the customer's money paid in advance will be
returned."

They still have the new Daihatsu Taruna in stock. "But don't
ask for a specific color if you want to get it fast," she advised
prospective buyers of the car, which is priced between Rp 89.9
million and Rp 109 million.

Elis said that this week alone, the dealer already had a long
list of interested Panther buyers who had paid a booking fee in
advance.

"Maybe because it's close to Christmas and the Idul Fitri
celebrations where people want to travel with their families. But
there are also those who want to trade their old cars for new
ones," Elis said, without revealing the exact number of people on
the list.

But she added that not everyone is willing to wait.

"Some people, who are in a hurry, usually turn to available
cars, or even to used cars. But the situation at every dealer is
the same: there's not enough stock," Elis said.

Many people, who cannot afford to wait, have indeed turned to
used cars.

Kusno, not his real name, went to Abadi Jaya car dealer in
Tebet, South Jakarta, to get himself a 1997 Great Corrola sedan
he had earlier spotted on display at the dealers.

But he was deeply disappointed to find out the car was already
sold and it was only waiting to be transported to its new owner.

"I tried to get a new car, but the dealer told me that they
could not guarantee when I'd get the car," he said, explaining
his decision to buy a second hand car.

One of the sales officials, Irene, said that the dealers,
which sells both new cars and used ones, was running out of stock
for both new or used cars.

"All the cars being displayed here have already being sold ...
so, if you want to sell your car, we'll buy it right now in cash
at a good price."