Despite losing 3 months of business, Malaysian used car sales hold steady in 2020

Even though the country is still undergoing a pandemic, used car sales in Malaysia saw steady growth in 2020. This is despite the fact that used car dealers were severely hit from March to May due to the movement control order (MCO).

According to the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president, Datuk Tony Khor, the used car industry had only about nine months of business this year as a result.

In an interview with StarBiz, he said in thanks to the sales tax exemption and 6-months moratorium, used car sales in Malaysia are expected to rebound and reach similar figures as 2019. Around 400,000 units of used cars were sold last year.

Khor has stated that the second half of the year saw some overall growth in used car sales. June saw sales surged 80% year-on-year, while July and August saw 20% and 25% growth year-on-year respectively.

However, October saw slow sales due to the expiry of the 6-months moratorium. November sales rebound back to an 18% growth and December sales are expected to be around the same.

The reason why used car sales saw a steady growth this year was in part of the pandemic which saw some Malaysians choosing to get a car instead of taking public transport. Furthermore, used cars are also a lot cheaper than brand-new ones.

Japanese used cars on the other hand ranked high in terms of popularity by consumers.

Khor has also stated that FMCCAM has several plans in the works for 2021 including an online platform to help its dealers and an extended warranty plan which gives up to 12 years of coverage, specifically on the engine and gearbox of the used car.