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.(more…)