Year-End Discounts: A Game-Changer in the Used Car Market
As the year draws to a close, the automotive market is witnessing a notable transformation, with used car dealers rolling out attractive discounts on a wide range of vehicles. This shift is primarily in response to the anticipation of rising car prices in the upcoming year, creating a mutually beneficial situation for both used car buyers and sellers.
According to reports from The Star, used car prices are expected to see a substantial dip, ranging from 10% to 15% during this season, making it a golden opportunity for prospective buyers in search of a well-maintained, pre-owned vehicle. On the flip side, sellers should be prepared for a potential hit of similar percentages while parting with their vehicles. This price fluctuation benefits both sides of the transaction: buyers can take full advantage of these year-end discounts, while manufacturers looking to clear out old inventory are often willing to lower prices for brand-new cars.
One intriguing facet of this market trend is the surge in popularity of specific car brands and models in the used car segment. Perodua, known for its cars' low depreciation rate, has gained substantial traction, with the Perodua Myvi emerging as a standout choice among discerning buyers. In contrast, the demand for Proton models remains relatively subdued, underlining the shifting preferences of used car buyers in the region.
Nevertheless, the used car market continues to recover from the impact of the ongoing pandemic. Sales have plummeted, and dealers are grappling to maintain sales volumes seen in the pre-pandemic era. In the past, it was typical for dealers to sell around 100 cars per month, but in today's market climate, selling 15 cars in a month is considered satisfactory. Some dealers have even resorted to selling at a loss to prevent their inventory from further depreciation.
While year-end promotions and substantial discounts are luring buyers toward vehicles from the 2023 production year, used cars, having already experienced depreciation, are less likely to benefit from these promotions. In contrast, new cars are currently receiving discounts of up to 10%, making them a compelling option for buyers who are keen on acquiring a brand-new vehicle at a reduced cost.
However, it's crucial for customers to carefully weigh their specific requirements when considering a vehicle purchase. Even with enticing discounts, new cars can remain relatively pricey compared to used cars, which provide a cost-effective alternative.
Interestingly, not all used car dealers are following the trend of offering deeply discounted prices to clear their inventory. Some have chosen to maintain the slightly discounted prices that have been consistent throughout the year. These discounts typically range from less than RM1,000 to RM4,000, contingent on factors such as the car model and other variables. It's important to note that these trends may differ from region to region and dealership to dealership.
The year-end discounts on used cars illuminate the ever-evolving dynamics of the automotive market, shaped by changing consumer preferences, market recovery, and the desire to seize year-end promotions. This creates a unique opportunity for both sellers and buyers to make the most of the current market conditions.
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