With thousands of flooded cars entering the market cheap there might be a glut in the used car market soon.
We have seen how the used car Unicorns have been jostling for market share in the past two years and they have provided a great service to Malaysian used car sellers in getting the best possible value for their cars over what traditional used car dealers used to offer.
For example, we had a friend who wanted to sell their 15-year-old BMW 730i to a traditional used car dealer who offered them just RM7,000 and we stopped this sale just in time to show them both the ‘Unicorn’ used car portals.
A quick photo session on the smart phone and an online registration and we had two new offers. One for RM18,000 and another for RM13,000. Well, almost double and more of what the ‘under the tree’ used car dealer was offering.
Our friend sold their BMW for RM18k and we got a free lunch. Over the past two years we have assisted many to sell their cars via the Unicorns and even a best selling car like a 2017 Honda Civic 1.8L was given a better price from a Unicorn.
The established used car dealer offered RM70,000, but after our ‘push’ for the Civic owner to use both Unicorns, she managed to get an initial offer of RM72,000 and a high offer of RM76,000 which she promptly agreed. An additional RM6,000 was welcomed.
However, as the Unicorns jostle for market share by offering great prices, they have put many traditional used car dealers into retirement.
They have also used their ‘funding’ money to open fancy inspection centers in central locations and they have hired a lot of staff. But it is the full parking lots (cars sitting waiting to be sold) that we are talking about today.
If you drive and visit the sales outlets of these Unicorns, you will see large lots FULL of used UNSOLD cars. Yes, and they are also renting lots and open flat lands to store these cars.
So, with the 2021 ending and we are at the start of 2022 and the lots all still filled with UNSOLD cars, what do you do to clear stocks that are now ONE YEAR OLDER!
Yes, it is January 2022 and all these cars are now one year older which means an additional year of deprecation. This is why there is a massive sale going on. Interest rates are below 0.99 percent a year, free warranty, free servicing and more. The banks and financial institutions will maintain their rates of between 1.99 to 3.40 percent a year.
This means the Unicorns are subsidizing the interest rates of every car sold right now. So, best time to get a used car at a great interest rate.
Add to this is the large number of flooded cars that will be coming into the used car market in the coming weeks and most of them will be with traditional ‘under a tree’ used car dealers who will offer ‘bottom’ dollar and hope to make a quick profit with a clean and shiny car.
This can be really expensive but a huge benefit to used car buyers. However, will they manage to clear their stock at a profit …..or not?
