As we approach the end of the year, the automotive market is experiencing a notable shift, with used car dealers offering enticing discounts on vehicles. This trend is driven by the anticipation of rising car prices in the coming year, which is creating a win-win situation for both buyers and sellers in the used car market.
According to The Star, used car prices are expected to drop by 10% to 15% during this period, making it an excellent time for those in the market for a pre-owned vehicle. However, sellers should be prepared for potential losses of a similar percentage when parting with their vehicles. This fluctuation benefits both sides of the transaction, as buyers can capitalise on these year-end discounts, and manufacturers eager to clear old stock are often willing to lower prices for new vehicles.
One intriguing aspect of this trend is the popularity of certain car brands and models in the used car market. Perodua, known for its low depreciation rate, has gained significant traction, with the Perodua Myvi being a standout choice among buyers. In contrast, the demand for Proton models is relatively lower, highlighting the preferences of used car buyers in the region.
The sales of second-hand cars are predicted to slow down for the remainder of the year, primarily due to the conclusion of the sales tax exemption on March 31. According to Datuk Tony Khor, the President of the Federation of Motor and Credit Companies Association of Malaysia, the sales of used cars during the first quarter of the year were comparable to the same period in the previous year. However, sales began to decline starting from the second quarter.
As reported by TheStar, Khor explained that the strong sales of used cars in the first quarter were influenced by the deadline of March 31, which was set for car manufacturers to deliver models ordered by customers to take advantage of the sales tax exemption under the National Economic Recovery Plan (Penjana). As more individuals purchased new cars, the necessity to trade in their old cars increased.
Volvo Car Malaysia has extended its pre-owned car programme, Volvo SELEKT, beyond the Klang Valley with the inclusion of a second dealership in Penang to handle pre-owned vehicles. Previously exclusively offered through Sisma Auto Glenmarie, Western Circle, an authorised Volvo dealer in the state of Penang, will now also house SELEKT cars, with additional listings available on Carlist.my.
Located in Juru on the mainland, Western Circle services customers and clients in the northern region. Now, besides offering the latest models, the dealership can also offer pre-owned units. All Volvo SELEKT cars undergo Volvo-approved checks to ensure that they meet the safety, performance, and appearance standards. This check and selection process can only be done by authorised Volvo Car dealers.
12 month warranty provided
Consequently, each dealership’s vehicles will meet the same high standards for all pre-owned vehicles and conducts a series of checks and updates. Additionally, those who purchase Volvo SELEKT vehicles will get a complimentary 12-months warranty and a 1-year maintenance service package (VSA 1) for peace of mind.
In addition to physical dealerships, the public can also browse and shop for Volvo vehicles – either Volvo SELEKT or Volvo quality used cars – from the safety of their homes through the Volvo Used Car Locator, an online platform that holds an inventory of all Volvo pre-owned cars available across 14 dealerships in Malaysia.
“When customers purchase a Volvo under our Volvo SELEKT programme, they are not just getting a more streamlined shopping experience of quality cars at a more accessible price but also peace of mind through our dedicated service and assurance of quality,” said Charles Frump, the new Managing Director of Volvo Car Malaysia.
Similar concept in other countries
Volvo SELEKT was launched in 2020 and follows a similar concept in some other countries. Once qualified for the programme, the pre-owned vehicle will receive a 125-point inspection and have its software upgraded to the latest versions so the engine will function optimally. Genuine Volvo parts will be used for any parts that need to be replaced. Most importantly, all the services and upgrades will be conducted by trained Volvo technicians who would know the cars best.
At the moment, the car industry has come to a standstill with the closure of retail outlets, so no business can be conducted. Of course, people in the car companies are still working and planning for the future. For Hyundai-Sime Darby Motors (HSDM), one of the new developments that can now be introduced is the Hyundai Promise Approved Used Car Programme, which is supported by Sime Darby Auto Selection.
For trade-ins and used vehicle sales
This new programme is for trade-in of vehicles as well as sale of pre-owned Hyundai vehicles. The pre-owned units sold through Hyundai Promise come with genuine parts and the original engine. Each vehicle has been through stringent and rigorous inspections by trained technicians to ensure that it is in optimal electrical and mechanical condition. HSDM also confirms the vehicles have not been involved in major accidents as part of the certification.
Warranty and emergency assistance service
This means that customers will have peace of mind when purchasing these vehicles. To give them more peace of mind, all Hyundai Promise approved and certified vehicles come with an extended warranty of between 2 to 5 years, depending on the age of the vehicle and the mileage since original registration. Additionally, customers can enjoy 24-hour road assistance service in case of an emergency.
“Hyundai Promise is forward-looking, offering customers a full circle of sales services, from purchasing their first new Hyundai model to trading in their vehicles for a newer model, with attractive deals. As the name of the programme suggests, we promise good quality vehicles and worry-free ownership. Customers who make their purchase from Hyundai Promise will enjoy wonderful benefits including quality assurance, financial solutions, and extended warranty,” said Low Yuan Lung, Managing Director of HSDM.
He added that Hyundai Promise is an important business segment that complements Hyundai’s existing business ecosystem. It also aims to regulate the resale value of used Hyundai vehicles in Malaysia by establishing values for the models.
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The sale of pre-owned (not pre-registered) vehicles by franchise holders of various brands has been going on for some time. In fact, the first one in Malaysia might have been Federal Auto, which set up its own division to handle used cars as far back as the early 1970s. Other companies have also had used car divisions although most have not focussed greatly on this business, leaving it more to used car dealers.
These days, there is greater demand for pre-owned vehicles (a nicer term for used vehicles) and a number of companies, even premium brands, have invested in the business more substantially. They give more attention to the condition of the vehicles they offer, ensuring that the safety aspects are not compromised. In some case, they recondition the vehicle to ‘almost as good as new’.
Peace of mind purchase
Bermaz Motor, which handles Mazda, has also been dealing in pre-owned vehicles since 2015 through its Mazda Anshin centre in Glenmarie, Selangor. ‘Anshin’ is a Japanese word for ‘peace of mind’ so a selling point to customers is that they can have peace of mind buying from Mazda Anshin.
Many businesses are going online these days, partly due to the COVID-19 situation which has put limitations on interactions between people. As far as possible, companies now make it easier and safer for customers to view and know about what they offer before the need to actually be at the showroom.
Bermaz now as a website for its Mazda Anshin business and this serves as a one-stop platform for customers to sell or buy Mazda vehicles. It offers many company demo vehicles as well as those owned by customers who may have trade-in for a new model.
Every vehicle has to go through a thorough inspection and be certified before being offered for sale on the website.
111-point inspection to be certified
Regardless of whether the vehicles were previously demo units or in the company fleet, or a customer’s vehicle, every vehicle must undergo a comprehensive 111-point inspection. This is done by trained technicians at two authorized Mazda Service Centres in Selangor.
Owners who have this inspection done are charged a minimal fee of RM200. After the inspection, the owner will receive the best Mazda Anshin Certified Valuation and recommend selling price.
Mazda Anshin’s quality standards require that the pre-owned vehicles have had no major accident damages, no frame damages, and never been through a flood.
3 simple steps
Customers shopping for Mazda vehicles can browse through the Mazda Anshin website for the best- -value, best-quality models available, all with Mazda Anshin Certification. The existing warranty, if still in effect, will still be available to the new owner, as well as the free scheduled service based on from the original registration date.
So the next time you want a pre-owned Mazda, consider the offerings at the Mazda Anshin website. After all, it’s the company that knows Mazda best.
Volvo Car Malaysia (VCM) has joined other distributors of premium brands in offering pre-owned Volvo cars with its used car programme known as Volvo SELEKT. The sale of pre-owned Volvos by the Volvo distributor is not new as Federal Auto, which was the first distributor for the Swedish brand, set up its own used car subsidiary in the 1960s which was quite successful.
The new programme, also available in other countries, by promises a premium experience for customers through dedicated service and assurance of quality. Each pre-owned Volvo car offered under the Volvo SELEKT programme is guaranteed to be under 5 years old and has less than 100,000 kms cumulative mileage.
Once qualified for the programme, the car will receive a 125-point inspection and have its software upgraded to the latest versions so the engine will function optimally. Genuine Volvo parts will be used for any parts that need to be replaced. Most importantly, all the services and upgrades will be conducted by trained Volvo technicians who would know the cars best.
“Through Volvo SELEKT, we hope to give customers the choice of an alternative option while maintaining all the criteria of excellence, reliability and performance of a premium luxury car. Moreover, we are committed to ensuring that all of our customers experience a seamless and premium journey of acquiring and owning a Volvo car. Volvo SELEKT thereon guarantees that customers will receive the same level of quality and service as that of a new Volvo car, but at a package that fulfils their financing needs,” said Nalin Jain, MD Volvo Car Malaysia.
A selection of pre-owned Volvos at a dealership.
While Volvo SELEKT owners won’t get the 5-year warranty that comes with brand new cars, there is still a minimum of 12 months of warranty coverage as well as complimentary 12-month maintenance service package (VSA 1), and 12 months of Roadside Assistance.
There is also the option of including Volvo accessories, including a Polestar optimisation package as an optional add-on for selected models.
“At Volvo, we put our heart and soul into every car, devoting hours of expertise and attention to detail so that it leaves a lasting impression. Pre-owned Volvo cars under the Volvo SELEKT Programme bear the same markings of excellent Swedish craftsmanship, dedication to perfection and above all, our commitment to safety. We hope that through Volvo SELEKT, more Malaysians can experience first-hand our pioneering safety features and innovation that has been engineered into each of these cars, making them some of the safest options in the market,” Mr. Nalin said.
