Malaysia Old & Used Cars need new market for dealers to stay afloat

It was reported that the used car market in Malaysia is not growing and the industry body is looking at various measures to give a spurt to sales volume.

The used car market is stagnant and used car dealers are struggling to stay afloat, according to the Federation of Motor and Credit Companies Association of Malaysia.To further address this, the association plans to introduce measures such as a vehicle inspection system which members can use and a new online marketplace.
It would also look for used car financiers from Japan, China and Taiwan as part of the strategies to address these issues, it’s president Tony Khor Chong Boon said.

Khor told The Malaysian Reserve (TMR) that used car dealers only sold about 400,000 units, whereas sales of new cars were reaching 600,000 units.He said despite the sales increase of new cars for the past 15 years, the used car market remained unmoved.

“Malaysia is the only country where used cars are not selling like hot cakes. In countries like the US, used car sales double the sales of new ones. In Europe, sales of these second-hand cars are twice the number of brand new cars, while Japan’s used car segment is 1.5 times more than new cars,” Mr. Khor told TMR.

For 17 years, the report said, new vehicle sales had risen more than 67% but sales of used cars had not improved.
Khor said the association, which represents about 3,500 dealers from the 5,000 used car operators, had identified three main reasons for this: low level of customer confidence in used cars, value depreciation of second-hand cars and strict hire purchase financing.
That is why the association is working on some new measures to improve the situation. This includes an inspection system for dealers.
" What it means is that, whatever cars you promote, it must first go through the association’s screening to make sure all the information is genuine. Customers can also go to our appointed centres to get the cars inspected and obtain a detailed report, ", Mr. Khor was quoted as saying by TMR.

The online marketplace is currently under construction and is expected to be rolled out this year. He is very confident that these measures would help the used car industry in malaysia on doubling the sales to about 800,000 units in five years time. We shall see .