Tuesday, May 28

Used Car Dealers Offer Discounts Before Price Hike in 2023

As car prices are set to rise in the coming year, used car dealers are rolling out significant discounts to attract buyers before the year ends.

Ooi Eng Chye, Vice-President of the Penang and Province Wellesley Used Cars Autocycles Dealers and Motor Financiers Association, revealed that prices for pre-owned vehicles will see a reduction of 10% to 15% during this period.

However, he pointed out that those selling their cars during this time might also incur similar percentage losses.

Ooi, an industry veteran of 35 years, noted that Perodua cars, particularly the Perodua Myvi, are hot commodities in the used-car market due to their low depreciation rate, below 10%.

He explained that the market is still in recovery mode from the pandemic, with monthly sales dropping significantly compared to pre-pandemic times.

He mentioned, “Before this, we would never lose money on a car. What people do not realise is that we check and fix it before selling it. That cost us a lot of money.”

Another car dealer emphasized that year-end promotions and substantial discounts are being offered to clear 2023 stock.

He clarified that even though a car is manufactured in the last quarter of a year, it is considered a year old in just two months. Hence, dealers are eager to move their stock before the new year to classify it as a brand new car in the following year.

In Kuala Lumpur, a Subang car dealer highlighted that new cars are receiving substantial discounts as part of year-end promotions, whereas used cars won’t see significant markdowns as they are already sold at depreciated prices due to previous use.

He advised potential buyers to consider a new car only if it is absolutely necessary, considering the high price point even after discounts.

A used car dealer near Batu Caves held a different perspective, opting not to follow the trend of lowering prices to clear stock.

He mentioned that despite the offers in previous years, sales have remained relatively consistent.

This year, they plan to maintain prices at a slightly discounted rate similar to earlier in the year, with discounts ranging from below RM1,000 to RM4,000 depending on the model and other factors.

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