Better way to sell used cars

A FEW months ago, I tried to buy a secondhand car but gave up midway due to the following reasons.

Firstly, the prices quoted were way above actual market value, sometimes up to 40% more. Secondly, there were hidden charges which didn’t make sense. Car dealers typically charge between RM1,500 and RM3,000 in “transfer fee”. This fee is apparently to cover the costs for Puspakom inspection, Road Transport Department transfer fee and time (excludes insurance).

The real cost for these would not even come up to RM500! Thirdly, most dealers tend to misrepresent the condition of the car and there is no way to verify their claims.

The current business model isn’t working for the dealers either, as many are complaining about sow-moving stock.

Here are my suggestions. Firstly, align display prices closer to market value.

Buyers may have been in the dark 20 years ago but with the Internet and insurance data, it’s very easy to find out the current market value of a car.

Secondly, reduce the “transfer fee” to an acceptable level. Buyers know when they are getting a bad deal and would respond better if they are charged appropriately.

Thirdly, be honest! Inform the buyers if there are any issues with the cars and tie up with nearby mechanics for repairs at the buyer’s cost. There are avenues for some profit-sharing here as well.

Fourthly, allow for independent inspection. I foresee a whole new market for independent inspectors if the fee is rightly priced.

Ultimately, I believe these sug- gestion will help turn the business model from the current margin business to a volume-driven business with improved profits for the dealers and better customer experience for the buyers.

Yes, there will be a short-term downward pressure on profits but with the increase in trust in the market, everyone will gain!

JEEVA RAJOO Shah Alam