There are efforts to digitise the used car industry by getting used car dealers to sell the vehicles online, through e-commerce solutions and social media marketing.
However, one can imagine how difficult it is for both the dealers and the customers to choose a preferred used car online.
Speaking to Business Times, Abdalla Salim of Superior Motors says working with myTukar, however, has eased some issues faced by his company.
The company made a deal with myTukar and it makes it easier for the company to have a digital presence.
“Digitalization is indeed the future of all businesses,” says Abdalla.
“At the moment, used car dealers at large do enjoy the much simpler process of transferring car ownership without physically having to go to a JPJ outlet. This has saved us a lot of time and manpower which we are grateful for as we hope to see continuous innovations to take this industry to the digital era.
“myTukar has helped our company a lot in terms of easing our supply problems. Before this, the company depended solely on bank repurchase agreement (repo) vehicles. This was conducted once a month and the condition of the vehicles was really bad which caused us to waste a lot of time on repairs and body works.
“Since collaborating with myTukar we have been able to expand our stock and also our branches at a higher pace than we could ever imagine, which has put our company in a better position to compete in the market,” he says.
The collaboration also helps them in terms of turnover, selling cars quicker than before with competitive prices and a larger variety of models or brands not available before.
Financial Woes
Abdalla Salim says besides the lockdowns, the changes in the financial capabilities of customers have ultimately affected sales.
“Like all other industries, the automotive industry has struggled during the pandemic with lockdowns and the changes in financial capabilities of our customers, ultimately affecting our sales.
“Being a new player in the industry, we have found it very difficult to keep momentum to sustain during these trying times.
“Even with social media marketing and e-commerce solutions, customers find it difficult to purchase used cars online. Customers still highly prefer the old fashioned way of purchasing in person and with the restrictions in place, it has made sustaining our business a real challenge, to the point where our sales have declined by more than 50 per cent,” he says.
The other struggle is the high risk of depreciation and maintenance to which used cars are very vulnerable.
But these struggles did not prevent the company from expanding in Kucing, with two showrooms.
The first of which is our main showroom along Jalan Batu Kawa while the second branch is located at Tabuan Tranquility.
The company has managed to stock more than 120 units and the goal is to achieve 200 units in stock by the end of 2022.
Nevertheless, problems keep piling up for small and medium businesses.
There is the problem of credit rating bogging the business in these difficult times and Abdalla feels the financial institutions should ease up on the scoring/credit requirements of buyers to allow companies like his to serve more customers, saying that will drive sales up.
“The used car business does contribute a lot to the country’s economy and we hope that all parties see the urgency to support it. With the pandemic hopefully coming to an end soon, my thought is that the government should find ways for the used car industry to recover in the months to come,” he says in the email responses.
