Since July, since the new car sales tax (SST) has not been exempted, the price of new cars has risen one after another, so the new market price of used cars has also risen. However, take Myvi for sale in the market, the used cars of such a car model, can even be sold for twice in terms of the original price several years ago.
At present, some customers are hard to wait for new cars and the prices of new cars are soaring. The second-hand car market has become active, and some people are in urgent need of cars. The willingness to spend a little more money to snap up a used car for transportation has also pushed up the price of used cars.
President of the Federation of Malaysian Automobile Manufacturers (FMCCAM) Datuk Xu Zongwen pointed out that under the influence of many factors, the demand for used cars in Malaysia has increased, according to the report in Wapcar automotive news.
In an interview, he said that data showed that in the first quarter of this year, the demand for used cars under five years of age rose by 8%, and prices rose by 5%. As of June 2022, the phenomenon of rising demand for used cars continues to appear.
Those cars have been launched to the market ranging from 1 to 7 years ago, and the second-hand cars of Perodua domestically are the most sought-after cars in the competition recently.
He explained that there are several factors that have led to the increase in the demand for used cars, including the shortage of chips and spare parts affecting the automobile manufacturing industry, leading to a global shortage of new car supplies. About 80,000 customers in my country who have reserved new cars have not yet received them. Some have even waited 4 months for a new car.
Generally speaking, about two-thirds of customers who buy a new car will sell their used car on a trade-in basis, he said. However, when the new car is not available, buyers still need to rely on the existing car for transportation and do not sell the old car.
Buyers of new cars aren’t selling their used cars at the same time, leading to an out-of-stock situation in the used car market and a lack of supply.
Another major factor driving up used car demand is the introduction of more transparent and efficient online trading systems in recent years, he said. Consumers’ confidence in buying used cars has improved.
Take e-Auto as an example, and EZ AUTO, both of which have made second-hand car transactions more transparent and convenient. Such things Connected technology will bring the used car market into better prospects.” He said that after my country entered the stage of the COVID-19 epidemic in April and transitioned to a local epidemic, the lives of Chinese people gradually returned to normal, and more people need to buy cars to travel. But in an atmosphere of conservative consumption, cheaper used cars have become the main choice for consumers.
It is difficult to sell if the price keeps increasing
In any case, used car dealers are also worried that higher purchase prices will make it difficult for them to find a car, and the higher the price, the harder it is to sell.
At present, the new car prices of various manufacturers have not been fully announced, some only announced some models, and some are still being drafted, resulting in uncertain car prices and varying increases. I believe it will take two or three months before the car prices will become clear.
The delivery period of new cars has been extended in the face of global chip shortages and other factors, and some new cars have to wait for three months, six months, or even a year.
The uneven increase in car prices has also brought confusion to the market price of used cars. Some used car dealers are facing high competition.
Li Tenghua: The higher the demand, the higher the price will follow
Li Teng Hua, the head of HH Premium Auto Centre in Penang-Perak, said in an interview that some used cars of popular models today, such as Toyota VIOS, were purchased for 46,000 last year for the 2015 model. For the same car model and year, the purchase price has risen this year, and some even sold for RM50,000. It depends on the market demand. The price would change along with the increase in demand.
In any case, not all car models have the same price, it also depends on the condition of the car, whether the car is beautiful or not, and whether the maintenance fee is high or not. Car dealers will make bids after considering various conditions, such as Bezza, a domestic car, which was acquired in 2019. The price is RM42,000, and after three years, the same car can still be sold for close to RM40,000, and the owner has not lost much in the depreciation price, and this is the current situation.
Li Tenghua said that car prices also follow market changes, and no one can predict what the market will be like next month. Therefore, they will face various risks at any time, some will lose money, and some will make money.
Feng Guangqian: Second-hand car prices follow the market
Feng Guangqian, head of Chengcheng Automobile, a used car dealer, said that used car prices have followed the market and have risen slightly, mainly due to the impact of new car prices. However, rising car prices is not a good thing for them, especially if they are in small towns, the higher the price, the harder it is to sell.
The car dealer sells one car and then buys the car, and the price will be higher. The bank has also tightened recently, which has lowered the valuation, resulting in less loan amount for car owners and more down payment. Therefore, Cause some customers to deter.
He said that the current popular used car models include Hilux, Jazz, Civic, Myvi, Vios, etc. As soon as they receive the car, they will be decorated, cleaned, and introduced to customers in the best condition, and the public generally knows the car The price has risen, so be prepared when purchasing.
Huang Junzhong: X70 style rose about 5,000 to 7,000
Huang Junzhong, sales manager of Chew Automobile Sdn Bhd, a dealer of Gaoyuan Proton, said in an interview that starting from July 1, the price of new cars will be subject to SST sales tax, and the price of new cars has generally increased. The new car prices include SAGA, X70, etc. The SAGA new car price increases by only a few hundred ringgits, while the X70 model increases by about 5,000 to 7,000 ringgits, and the prices of other models will be announced by the head office one after another.
He said that at present, those who order a new Proton car will have to wait about three months to pick up the car, and Proton is doing its best to deliver the car in time to catch up with the peak season.
At the end of June, he said, many customers were hitting the deadline to order new cars to get discounts on old prices, which doubled June sales. The center also has 4S services, and the addition of a bright Proton model has stimulated more purchases.