Bandar Seri Begawan - Despite new credit regulations by the government there has been no drastic changes or losses seen in the used car markets. Despite a lull in the sales, there is improvement seen.
The owner of a used car company who prefers anonymity, said sales has been normal although a little less. He also said that the new regulation regarding credit cards has not interfered with numbers in sales. Although market growth has been slow since February, he claims that 80-60 cars are still being imported in a month.
With cars primarily being brought in from Japan, the concern remains for quality said the owner. Since the system is new, people are still uncertain about the impact in the future of the used car business.
He also added that the cars he sells are in the moderate and expensive category have grading system according to Japanese standards. He also stated that only cars of grade 4 and above are chosen and a new car would have a grade of 5 and then reduce to 4 or 4.5 according to use.
Concerns on the part of the customer are about repayment, particularly of car loans. With credit card payments no longer an option it is a worry. However they still can meet the monthly payment amounts and do continue to purchase cars.
With the Yen affecting prices, and business being a gamble as always, the dealers say they do a trial with a few units of a model to assess the popularity. If it is a success then they bring in larger numbers for sale.
The domestic automobile market still has good sales in used cars and there is healthy competition among distributors said NBT managing director, Ninan Chacko. He also added that the used car market provides people with a chance to buy the models they like despite Yen rates being high. He expects that the new regulation will affect the market by making it difficult for people who can barely meet with payments to afford these cars. This will certainly affect the dealers as well as the NBT, he added
Reports show that there are still increases in sales, with The Brunei Automobile Traders associations showing 974 units sold in March as compared to 808 sold previously. Grand Motors Sdn Bhd has seen an increase of nearly double the number from 49 being sold in February to 112 units sold in March - Courtesy Borneo Bulletin.