We previously reported that second-hand car dealers are experiencing record-high sales in July 2020. It seems the success followed through to the third half of 2020 as well.
According to the president of Federation of Motor and Credit Companies Association of Malaysia (FMCCAM), Datuk Tony Khor, the year-on-year sales in July spiked over 25 percent to 37,800 units while both August and September registered over 17 percent year-on-year growth.
He attributed the spike in sales to the incentives like Sales and Service Tax (SST) exemption and loan moratorium the government has put in place during the Movement Control Order (MCO).
“We secured sales of 112,400 units for the last three months. The Q3 sales brought the year to date (YTD) figure to circa 280,000 units and we could match the industry’s average yearly sales as demand stays brisk in view of the ongoing tax holiday,” he told Bernama.
Khor also further elaborated that the average yearly turnover for used cars in recent years has been hovering around 400,000 units and worth over RM 15 billion in total, based on an average value of RM 40,000 a unit.
Among the top-selling new cars are the Perodua Myvi, Honda City, Toyota Vios, Proton Saga, and Proton Persona.
Furthermore, amidst the Covid-19 pandemic, it is understandable that most consumers would prefer to drive their own cars and buying used is the safer option with the uncertain economic climate.
Khor proved this point by the announcing that used cars with the strongest demand during the MCO period are cars with the average value between RM 30,000 to RM 40,000.
Though used car sales have been at its record high in the past 3 months, Khor warns the trend might not continue and may be short-lived. As it is, sales have been slowing down in October.
Khor predicts that the jubilant car sales will end following the expiry of the six-month loan moratorium, though the on-going SST exemption might keep demand steady.
“We hope the government could announce another three-month extension of the loan repayment moratorium until 31 December 2020 to further support the industry during the pandemic,” he added.