The used car market in Malaysia, like the automotive industry as a whole, was severely affected by the arrival of the Covid-19 pandemic, though the local market has seen a rebound with the introduction of government incentives, and a flat year-on-year growth is expected for this year, The Star reported.
Used car businesses were severely impacted between March and May as a result of the movement control order, said the president of Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) Datuk Tony Khor, who noted that the used car industry will effectively have had only nine months of business this year compared to other years.
“However, the sales tax exemption and six-month (loan) moratorium helped spur sales in the second half of the year, and we expect 2020 to be on par with last year, which isn’t bad,” Khor told the news daily, adding that the total volume of used car sales in 2019 was 400,000 units.
As of November 6 when Malaysian Budget 2021 was announced, finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said there will be no automatic extension of the moratorium, but assistance to eligible borrowers will be updated.
“Despite the economic uncertainty, used car sales have still been steady because the Covid-19 pandemic has deterred people from using public transport. Also, people prefer to buy used cars because they are cheaper,” Khor said, adding that Japanese cars were among the most popular among used car buyers.
The FMCCAM will be working on several initiatives to increase consumer confidence and drive growth in the local used car sector, the association president said. An online platform for 4,400 of its dealer members has been started, which will be a tool for the sourcing, inspection and valuation of used cars, and the platform will boost transparency and professionalism which will ultimately boost customer confidence, he said.
“New cars come with warranties that may last around five years. But we want to be able to offer warranties that will last up to 12 years, specifically for the used car’s engine and gearbox. Being able to offer something like that, it will help build confidence in purchasing used cars,” said Khor.
He added that customer confidence levels were a lot lower in Malaysia compared to countries such as the United States, Japan and in Europe. “In many countries overseas, the turnover rate of used cars are higher compared with new cars, however, in Malaysia, the turnover rate for used cars is 1.5% lower than new cars, because of weak confidence levels,” Khor noted.
The turnover rate 2.3 times higher in the US and 1.8 times higher in Europe. The performance of the used car sector next year will ultimately depend on how well the pandemic is contained, Khor said. “If the vaccine is quick and effective, then we believe that the next two-to-three years will be positive for the local used car sector,” he said.
Looking to sell your car? Sell it with Carro.
So please pay income tax properly.
There are plenty of “YEAR END BARGAINS”as the year draws to a close.
However,whats disgusting is the “ADMIN FEE” thats haven’t been regulated.
The fees can range from Rm800 to Rm5000,at the whims and fancies of the used car dealers.
WE wonder what the relevant Kementerian is doing.I hope YAB Datuk Wee Ka Siong as Transport Minister will step in,and put a limit to the hanky panky thats been going on for donkey years.
Now ,in a regular used car website,we have this bullshit”20xx”advert regarding the year of make of the used car.The car year of manufacture is hidden.Whats so secretive?
High time we put a stop to this unacceptable advertising.
Better used myTukar.com for sekenhen used car.
KPDNHEP to be exact.
Nothing they can do now, they must draw the regulation first.
Anyway, there are quite a handful of dealer which already doing things ‘against the flow’. I respect such dealer. They even sell at lower price thus showing that its possible to sell cheaper but still earn profit plus keep business afloat.
Although most people will go for new cars if they are financially afford it, but reasons buyers chose for used car, apart from cheaper purchasing price even after including those ridiculous processing fee, at least buyers/enthusiasts still can choose manual option from low to highest spec while for new cars, excluding hardcore and ultra expensive sport cars, there’s no more manual option (their car brochure from Protong and Berukdua all kelentong one), Berukdua is even worse, their SA usually insult carbuyers whose looking or even questioning for manual variant with ‘Idiot’ or ‘Lu betul-betul bangang punya orang, apasal mau angkat manual, mau racing ka?’
Apa yang ko merepek ni
Now a day, why still using manual.. Jammed teruk maa..
When buying 2nd hand cars…….just be very wary of scammers and unscrupulous salesman with their “hot sales” and so-called “discount durian runtuh”. Walk-away if something is fishy.
If not, it’s gonna be a financial disaster for the car owners.
But most 2nd hand car buyers are blacklisted by bank, Ptptn, angkasa & bankrap. Which is why they can only buy kereta sambung bayar….
But since now, the automatic six-month loan moratorium extend by angkasa. So is no problem.
Just bought Suprima S premium, rm18k.. Ok what..
PT fren with that used car dealer at sg besi as in picture? tell them to refund my deposit. they owe me rm250
1st of all FMCCAM have to make sure to rid off the hidden charges of used car dealers charging.
make a guide line to follow.
report to authority to take action towards the dealer are charging the hidden fee .
dont support and backup the dealer.
make it clear to all dealers that FMCCAM are going after the dealers who charge hidden fees .
implement a system that customer can complain to FMCCAM and investigate the issue