Foong also said the imposition of a RM10,000 charge on the price of open approved permits (APs) would impact sales.
During the tabling of Budget 2010 last October, the Government proposed that open APs no longer be sold for a measly few ringgit, instead a RM10,000 fee was levied for such a document.
When polled by StarBiz at the end of 2008, like many local used car dealers, Foong forecast a bleak outlook for 2009. Thankfully, conditions weren�t as tough as initially expected, he said.
�Fortunately, 2009 wasn�t as bad. Can still survive-lah.�
Foong has been in the used car business for over 15 years. The company sells fully imported cars. Overall, he said Japanese brands were the most popular in 2009.
�Japanese brands like Toyota had the best resale value. Models like the Alphard and Estima were still moving. People were more selective with the European brands.
�Japanese makes are the bread and butter of the local used car industry,� he said, adding that the used car trade did see a �pick up� towards the end of 2009.
A Klang Valley-based used car dealer, who requested anonymity, said he was hopeful that 2010 would be �a better year� for the industry.
�Markets everywhere are turning around and hopefully conditions will be better in 2010,� he said.
The dealer said sales of local cars (versus foreign vehicles) performed better in 2009 and the trend would continue for 2010. He said rising inflation would have an impact going forward.
�Oil prices are not favourable, having breached the US$80-mark recently. This will spur inflation and will have an impact on business,� he said.
Butterworth-based Keat Hoe Used Car Enterprise is also unsure about what to expect for 2010. Sales manager David Ang said: �The market is still unstable and the credit facilities are still not so good; 2010 will be a slow year.�
He said fuel efficient, smaller engine capacity cars would sell well.
�These cars are easier to sell as they are also cheaper.�
Ang said that with the Chinese New Year festival next month, sales in the first few months on the year was expected to be slow.
�During these times, people will spend money on festive gifts or even go on holiday. After that, would they have money to buy cars?�
He also said the recently announced petrol subsidy scheme, which requires owners of cars with bigger engine capacities to pay a higher price for petrol, would have an impact on the used car trade.
The Government earlier this month said it was planning a fuel pricing mechanism to ensure that only targeted groups, particularly those with lower income, would receive the fuel subsidy.
�It won�t just affect the rich. There are many businessmen who drive big cars but not all of them are wealthy. The not-so-rich ones will also be affected,� Ang said.
Kuala Lumpur-based Kim Sang Used Car Co is also maintaining a very cautious outlook. Salesman Sunny said he was expecting a �tough 2010.�
�The economy is not good and many people are still holding back to wait and see.�
He also cited a recent news report on a Penang-based used car dealer offering a �buy one, get one free�� package of a pre-owned Proton Iswara or Perodua Kancil with every purchase of a luxury car worth over RM100,000 in conjunction with the Chinese New Year.
�The fact that dealers are resorting to such measures is evidence that times are still not good,� said Sunny.
Sales manager Terence Chin of Klang Valley-based Sadra Motor Sdn Bhd, meanwhile, said business was �okay� in 2009 and should be �about the same� this year.
�We�re not cautious. But we will need to work harder,� he said.
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