What is the current demand trend for used cars in Malaysia?

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Used Car Demand in Malaysia Shows Upward Trend Amidst New Vehicle Supply Issues

The demand for used cars in Malaysia experienced a notable increase in the first quarter of 2022, with an eight percent rise. This surge is closely linked to disruptions in the new vehicle market, which have led to extended delivery times and a subsequent scarcity of pre-owned vehicles. Consequently, prices for used cars, particularly those less than five years old, have also seen an approximate five percent increase.
Impact of New Vehicle Shortages on Used Car Supply

Supply chain challenges, including a global shortage of essential components like microchips, have significantly impacted the delivery of new vehicles. This has resulted in a backlog of over 80,000 new vehicle orders in Malaysia. As a direct consequence, many prospective car buyers are choosing to retain their existing vehicles rather than trade them in, which traditionally replenishes the used car market. This reduced inflow of trade-ins has directly contributed to the tightening supply of used cars available for purchase.
Increased Demand Observed by E-commerce Platforms

Automotive e-commerce platforms have also registered this heightened demand. Carsome Certified Malaysia, for instance, has observed a greater interest in used cars on its platform, a trend they partly attribute to the prolonged waiting periods for new car deliveries. This indicates a broader market shift where consumers are actively seeking alternatives in the used car sector due to the new car market's constraints.
Factors Influencing Used Car Availability

While demand has risen, the availability of used cars has been somewhat buffered by an increase in individuals looking to sell their vehicles. Factors such as the shift to work-from-home routines, which reduce daily commuting needs, and potentially the lingering effects of sales tax exemptions on new car purchases, have encouraged more people to put their used cars on the market. This increased supply from private sellers has helped to absorb some of the price pressures consumers might otherwise face.

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What is the current demand trend for used cars in Malaysia?

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