PENANG: Several factors have contributed to the surge in demand for used cars by 8%, says Datuk Tony Khor, president of Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM).

Statistics showed that demand for used cars below five years surged by 8% during the first quarter of this year while the price increased by 5%.

He said demand for used cars continued to increase as of June.

“Used cars which are one to seven years old and Perodua cars are the most popular in the market now,” said Khor in an interview with Sin Chew Daily.

Khor said the shortage of microchips and accessories had affected the automobile industry, leading to the shortage of new cars.

About 80,000 car buyers have yet to receive their new cars, he said, adding that some waited for up to four months.

Khor said two thirds of car buyers would normally trade in their old cars.

As they have yet to receive their new cars, they are still driving the existing vehicles.

“This has also caused the short supply of used cars in the market.”

Another factor which has boosted the demand for used cars is the confidence consumers have in used cars.

The online system to purchase used cars is easy and transparent, Khor said.

“The eAUTO under the FMCCAM and the ezAUTO.my launched in 2019 offer high level of transparency and convenience.

“The government has allowed EPF contributors to withdraw up to RM10,000 from their accounts, and this has also stimulated spending,” he said.