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  • Writer's pictureEng Kee & Sons Ng

Used car businesses to sustain in endemic


THERE has been an increasing interest in second-hand cars as new cars have become too expensive. Moreover, as the country transitions into endemicity, the used car industry has been thriving.

According to myTukar Sdn Bhd CEO Derrick Eng, presently, used cars are sustainable and are more enticing in terms of cost due to them being depreciated quickly.

“In buying a reliable used car, you would only be paying about 60% to 80% of the cost of a brand-new vehicle and receive a highly reliable vehicle that is covered by factory warranty.

“If maintained properly over the years, their features retain high usability, hence, giving drivers a perfectly functional car for much cheaper than what one would have paid for a new car,” he said in a recent statement.

He also believed that the shortage of microchips for new cars is a major crisis globally involving tiny components. “When the world shut down as a result of the pandemic, it led to the closure of many factories, as carmakers were too slow to order more chips or semiconductors and lost to electronics manufacturers. Consequently, supply shifted to meet the rising demand for consumer electronics and the backlog began to grow. “Hence, when the automotive industry began to slowly reopen, a stronger-than-expected demand for new vehicles outpaced production, and has yet to catch up. “As new vehicles require a plethora of microchips to control a majority of functions, consumers looking for new cars will now have to consider other options,” he added.

Furthermore, he believed that new cars have side effects to the environment due to production and exploitation of natural resources that has been a concern for many years, even more so now that global warming is increasingly threatening. “Even hybrid cars, which are more sustainable than normal cars, are extremely hazardous during production. A typical passenger vehicle emits 4,600kg of CO2 per year, while the production of a new electric car emits about 14,746kg of CO2. “As an industry expert, we strongly believe that a major way to reduce harmful emissions is by extending the life cycle of old cars. In doing so, we not only make used cars sustainable, but we also reduce factory emissions,” he added.

Eng said buying used cars is less taxing on the environment as the emissions were already produced. He described it as akin to receiving a huge emissions discount.

“Buying well-maintained used cars means that one does not have to keep supporting such harmful production. It also means that the demand for new cars will potentially reduce the production damage without impacting major transport plans,” he said. In terms of prices, Eng believed there are a lot of hidden fees involved for a purchase of a new car while there are no shipping or hidden fees for used cars. Meanwhile, in terms of warranty, he said buying a used car is a gamble, as most are uncovered by the manufacturer’s warranty.

“To make buying used cars more affordable, myTukar offers a five-day money back guarantee and an extended one-year warranty. With extended warranty, used cars can extend their life cycle even further,” he explained. Moreover, he asserted that buying vehicles should be a smooth process as it is important for customers to understand that they are paying the right price and have checked every aspect of the vehicle.

Meanwhile, Federation of Motor & Credit Companies Association Malaysia president Datuk Tony Khor said the sales of used cars are adequate and satisfactory. He had founded the e-Auto app which provides a convenient, fast and safe way to facilitate the whole process of buying and selling used cars. “New car dealers who transfer used cars are only using biometric thumbprints and doing it online within a minute to transfer the comprehensive ownership via the app. This enabled us to save nearly RM100 million in expenses,” he told The Malaysian Reserve.

He said due to technological advancement, used cars businesses are able to run as usual and only the inspection section was affected during the pandemic. “In the previous five years, most dealers started doing marketing and sales online, hence, this is good for dealers who are already used to online transactions,” he added. Khor also thanked the government for introducing several supporting plans and allowed the permanent transfer of vehicles to be conducted online which enabled the sale of used cars to sustain. He predicted that the sale of used cars would also be ample in the endemic phase.

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