GEORGE TOWN: With the value of cars depreciating by the day, used car dealers are hoping to reopen after over 60 days of closure, even though many are expecting business to be slow.

       Used car dealer sales manager Salim Abu Baker, 47, said with current economic conditions, demand for used cars would be low.

       “If we reopen, we definitely expect some buyers, but not many would want to buy or take a five-year loan during this period.

       “Due to the Covid-19 pandemic, we are already seeing a high return rate for new cars,” he said, referring to owners deciding to let go of their cars because they are unable to service their loans.

       “Before the lockdown, there was a period when many were selling off their cars.

       “These are some of the most challenging times for many people, and to us, it is equally bad,” said Salim when met at his garage on Jalan Sultan Azlan Shah yesterday.

       He added that since used car dealerships have already been closed for over two months now, the market value of their vehicles would have inevitably dropped, causing losses to many of them.

       “Coupled with the fact that we are also paying rent, maintenance and upkeep of the vehicles, we really do not know how to deal with longer closures.

       “Even after we reopen, we expect demand to be low as this is not the best period to commit to a loan due to the economy.

       “Thus, we really hope we can reopen soon, especially if car washes and places like salons with higher exposure risks are allowed to open,” said Salim, who has some 60 used cars parked at his lot in Kulim and Penang.

       Despite the proliferation of online used-car platforms, he maintained it was not practical for them to sell their used cars online.

       “Buying a car is not like buying fish or vegetables where you can order or buy online and get it delivered.

       “There are processes that we need to settle with potential buyers face to face, such as inspections, test driving and loan management.

       “Potential buyers need to personally come and inspect and test drive the vehicles.

       “They would not want to choose their cars through a screen as we are talking about buyers committing to at least a five-year loan if they buy the vehicle.

       “These are serious considerations and as such, people would want to personally walk in for the best experience and service,” he added.

       Another car dealer who wanted to be known only as Lau, 42, said he also expects demand for used cars and their market value to drop by the time they reopen.

       “As we are talking about used cars, most of the cars at my place range from RM10,000 to over RM20,000, which could still see a number of buyers.

       “But with the economic situation now, only those who really need a car would commit to buying one, and with the prolonged closure, we are expecting further losses.”