What Happens to Unsold 2019 Vehicles?
While people are reluctant to spend now, Automologist KEVIN thinks it’s a good time to buy a new car. Here’s why…
As the country braces for prolonged restricted movement and a tumultuous economic climate, buying a new car would not be on anyone’s priority list right now. But if you’ve been thinking about getting a new car, you may just be in luck. With dealerships still possibly holding unsold 2019 inventory, they will be desperate now to sell off these cars to make space for their upcoming 2020 models, which they have possibly committed to. Consumers will be able to take advantage of steep price drops as dealerships scramble to clear out their unsold inventory.
The problem is not only occurring here in Malaysia but also worldwide. I read an article recently about the Philippine auto industry feeling the painful collateral damage of the COVID19 lockdown, which started on the 15th of March. Each car dealer, depending on its size and brand, has been losing between PHP3 million to 10 million (MYR 250,000 to 850,000) a month since operations were halted. For the estimated 600 dealerships in the Philippines, the combined losses of all dealers in the country now runs from PHP2.7 billion to PHP9 billion ((MYR 230 million to MYR765 million) for the past one-and-a-half months. It is feared that the automotive industry there would take a 40% dip, threatening the livelihood of more than half of their 408,000 workforce.
In recent years, most dealerships have experienced less demand for fossil-fuelled vehicles. Meanwhile, the demand for hybrid and electric cars has increased.
To be clear, the difference between a traditional, hybrid and electric car is the way the car gets its power. Traditional cars rely on petrol or diesel fuel to power an internal combustion engine. Hybrid cars also have an internal combustion engine and can be fuelled with petrol or diesel just like traditional cars, but they also have an electric motor and battery. This allows them to achieve significantly better fuel efficiency and pollute the air less than conventional non-hybrid cars.
Electric cars, on the other hand, do not rely on fuel at all. They get all of their power from electricity. They are considered completely zero-emission, but they do need to be electrically charged regularly, which can take a lot of time. In response to the increased demand for hybrid and electric cars, a few things have happened: Firstly, many dealerships have overestimated the demand and ordered way too many hybrid and electric cars. They need to find a way to get rid of the ones that don’t sell, and they often do this by lowering prices. When there are 2019 models that still haven’t been sold, they need to get rid of them, and they need to do so quickly. With more and more 2020 vehicles to squeeze into the lot, there is less room for 2019 ones. This simply means we may get steep discounts and better deals for the 2019 models.
To find the best deals available, your best bet is to look online. With common online sites such as mudah.my and carlist.my, you can search for your dream car at affordable prices. With a simple online search, you’ll be able to find a number of deals and incentives and nearest locations of your local dealerships.
Consider comparing multiple options as well, especially if you’ve got some flexibility on what car make to buy. Some dealers with monumentally more unsold 2019 inventory will more likely give you a sweeter deal. As always, doing a little bit of extra research can really pay off.
With newer cars already hitting the dealerships, older models will become irrelevant and it will be safe to assume that car dealerships will offer some incredible deals.
So, if you’ve been planning on buying a new set of wheels, this would be the best time to look for those deals. These amazing deals won’t last forever, so you should be sure to strike while the iron is hot.