Second-hand car dealers expect vehicle sales to fall

Some second-hand car dealers have described the recent new measures taken to cool the automotive market as a "drastic" move.

They cautioned that the move may even cause used-car sales to fall by more than half.

Car dealers said that prospective car buyers are usually young people with limited income, or families with children, and they are usually customers who take car loans.

However, with the tightening of measures on car loans and registration fees, car dealers said this will have a significant impact on car buyers.

Mr Eddie Loo, Owner of CarTimes Automobile, said: "It will affect the used car market very badly. Because those who bought the used cars, definitely they have some financial difficulties so with this down payment of 40 per cent to 50 per cent, it will definitely drive all the customers away from the used car market or even from buying a car."

SOURCE

Yes, the new policy is here to stay, no matter how bad it can be to some. To the dealers who have been enjoying the golden period of high COEs for the past 24months, it is now time to suffer from the wrath. 

The cars you took in on low value has been selling at significantly high prices due to the COE. Right now, many will be stuck with the cars as less people are able to afford the 40% downpayment.

To those who are thinking of making their car purchases with 100% on maximum 10years loan period, it is now time to come back down to earth and stop dreaming.