Dealers See Strong Used Car Market In 2023

In 2023, used car sales are anticipated to pick up again as more consumers choose less expensive or pre-owned vehicles due to the cautious economic outlook. According to Datuk Tony Khor, president of the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM), the pressures of inflation, rising interest rates, and slower economic growth will weigh on sentiment this year. This is due to people becoming more cautious and more likely to upgrade to used or less expensive cars, which are more cost-effective than new ones.

In 2023, Khor predicted that used car sales will increase 10% year over year. Because of health-related worries about being in crowded places, people have generally felt more at ease driving their own cars than using public transportation since the pandemic. He added that transactions will benefit from online marketplaces, which will speed up the buying and selling of used cars. Khor claims that 2022 was a great year for the used car market, especially given that 720,658 new car sales set a new high. The need to trade in one's old car will increase as more people buy new cars, he predicted. “About 65% of people who purchase new cars also trade in their old ones. Used car sales have been consistent so far this year”, Khor said.

The delivery of backlog orders caused new vehicle sales to increase 39% last month to 62,649 units from 45,062 units in the prior corresponding period, according to the most recent statistics from the Malaysian Automotive Association (MAA). Year-to-date Comparing February's sales volume to the same month in 2022, it increased to 112,128 units. Compared to February 2022, when passenger vehicle sales were at 40,119 units, they increased to 55,555 units in February 2023.

According to MAA, commercial vehicle sales increased from 4,943 units in the preceding month to 7,094 units in the reviewed month. Regarding the outlook for March 2023, MAA noted that sales volume is anticipated to be higher than February 2023, driven by a rush of deliveries by businesses whose fiscal years end on March 31, 2023, Hari Raya festival promotional campaigns, and fulfilment of reservations made during the sales exemption period.