Thanks to the Short-Term Economic Recovery Plan (Penjana) announced by Prime Minister Tan Sri Muhyiddin Yassin in June, it is not only the new cars that are seeing a rise in sales, but also the used car sector.
It is said that the impact of the sales tax exemption was immediate, with vehicle sales rising 5.1% to 44,695 units in June and surging 95% on a month-on-month basis.
Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) President Datuk Tony Khor said the surge in demand for used cars at the moment is a scenario that is simply too good to believe.
It is said that year-on-year, used car sales in July have gone up more than 20%. On a month-on-month basis, sales are up 30% compared with June. Year-on-year June sales on the other hand, has jumped by more than 100%.
Speaking to The Star recently, Khor said that factors like customers downgrading to cheaper vehicles in light of the economic uncertainty created by the COVID-19 pandemic, is what has contributed towards the recent surge.
Khor attributed the surge in demand to the spike in new vehicle sales, which has been spurred by the government’s tax exemptions.
“As more people buy new cars, the more they will need to trade-in their old ones,” he said.
Sales have been so good that Khor said vehicle inspection centre Puspakom has problem coping with the volume, with the waiting period for vehicle inspection being extended to almost a week.
Khor said the six-month moratorium, which ends in September, has also helped to spur sales.
Even at the Malaysian Automotive Association’s (MAA) biannual review last month, president Datuk Aishah Ahmad acknowledged that used car traders are experiencing roaring businesses with more than 100% improvement in sales.