UPDATE: The post now includes a paragraph at the end of the story from the original source report.

Edaran Tan Chong Motor says the move to bring down car prices and excise duties will have a negative impact on the industry, according to a Bernama report.

Executive director Datuk Ang Bon Beng said discussions must be held with used car operators, dealers and traders to get their feedback before putting the move to practice, adding that new car dealers would be negatively affected as they would have tied-up their funds in new vehicles as stocks.

“If the value of cars suddenly goes down, the dealers are certain to lose out,” he told reporters recently. He was responding to a statement by Parti Keadilan Rakyat Director of Strategies Mohd Rafizi Ramli who promised to bring down car prices if the opposition pact wins the general election.

Ang said the proposed price drop would affect the used car industry badly and this could result in steep losses as consumers would opt to buy cheaper new cars over used cars.

He said 14% of used car buyers were still paying for their loans and would lose out if the value of their cars depreciated. “Although the move will be good news for consumers, a proper study is needed in order to come out with a holistic approach before implementing the proposal,” he added.