SECOND-HAND car dealers are offering discounts to move stock amid uncertainty over the economic outlook for next year and the possible impact of inflation on the used-car market. 

Industry players said the discounts ranged between 10% and 20%. 

Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) deputy president Teh Seng Hap said the group’s members had little choice but to take this move. 

“The economy is very bad now, and next year’s economic situation will be even more uncertain. 

“Also, more and more electric cars are about to enter the market, so we feel that it is better to move stock and make whatever profit we can,” he said. 

He noted that the move would help some members deal with their cash flow issues and service loans. 

Kuala Lumpur and Selangor Car Dealers and Credit Companies Association vice-president Lee Puay Loong said in generally, the second-hand car market would slow down at the end of the year. 

“So, discounts ranging from 10% to 20%, depending on the car model, should attract consumers to come in and buy.” 

He said used-car sales are estimated to have dropped by 30% to 40% in the past three months. 

“In addition, there is now an abundant supply of new cars and the market has reached a saturation point,” he added. 

He encouraged consumers to buy cars from car dealerships affiliated with FMCCAM. 

“Consumers can check our relevant websites. If there are any problems during the purchase process, we can help supervise to avoid unpleasant things happening.” 

FMCCAM vice-president Dave Lim said sales of second-hand cars in Malaysia varied according to region, and second-hand cars in Johor were very popular. 

“Because Johor is close to Singapore, many local people work in Singapore but still live in Johor, so Malaysians who earn Singapore dollars can easily change their cars. 

“Discounts matter little for these people. But in some areas where the used-car market is not good, they do offer discounts of 5% to 10% to attract consumers.” – December 2, 2023.