Demand down for used cars

Demand for used cars has gone down, following the latest COE bidding exercise which saw premiums dive.

It was a Saturday afternoon, but there were few customers at Automobile Megamart at Ubi Avenue 2.

The Singapore Vehicle Traders Association estimates that the number of people visiting the megamart to buy or check out car models over this weekend will decrease by 20 to 30 per cent compared to two, three weeks ago.  



Second-hand car dealers said that with the falls in COE premiums, more buyers are adopting a "wait-and-see" approach to getting used cars.

However, the Singapore Vehicle Traders Association expects sales of used cars to remain stable.

"From now till end of the year, the used car market will still be quite stable, maybe selling about 5,000 to 6,000 units every month," said Raymond Tang, honorary secretary of Singapore Vehicle Traders Association.

Some 15,000 cars changed hands in the first three months of the year, according to statistics from the Land Transport Authority (LTA).

This is a decrease of about 10 per cent from the approximately 17,000 cars that changed hands in the same period a year ago.