THE secondhand car industry saw sales grow by 15% this year and is expected to thrive in 2023, the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) said.

Its president Tony Khor Chong Boon told The Malaysian Insight that the industry saw profits increase by 15% compared to 2021.

“This year was very good compared to last year. January to July was very good, August was still good, September was a little slow as were October and November but business was still good compared to 2021,” he said.

“(The industry saw) double digit growth of 12-15%.“

In anticipation of a recession, Khor said buyers will turn to cheaper cars in an economic downturn.

“We expect the used car industry will do well next year even if there is a recession. This is because a person who is using a RM100,000 car will switch to a car that costs RM70,000 to RM60,000,” said Khor.

Second Hand car dealers were not allowed to open this time last year amid Covid restrictions.

The Malaysian Association of Automobile Manufacturers had said the automobile sector was severely affected by the lockdown that began June 1 last year and ended March.

Personal transport

Khor said sales grew this year because of several factors, including lack of public transport.

“Many of us still need our own transport to move around because public transport is lacking.

“Even though Grab has done well, people still prefer to buy their own cars. Our hot weather is another reason why people prefer to drive,” he added.

Covid-19 fears

Khor said people were also avoiding public transport because of Covid-19 fears.

“We understand that people are afraid of catching the virus if they use buses or trains.

“So they turn to used cars for affordable transport.”

Khor said digital platforms also helped to boost sales.

“Many of our members sell online and the response has been good.”

FMCCAM last year launched the eAuto platform to sell used cars online. It is reported to record an average of 90,000 transactions a month.

The association represents 4,600 companies with 7,000 outlets nationwide. Its members account for 90% of used cars sales.  – December 24, 2022.