GEORGE TOWN: Car dealers here are rolling out enticing discounts on new vehicles as the year ends, with some slashing prices by up to RM60,000 for a BMW model.

New and second-hand car dealer Lim Kok Wei said the discounts are aimed at clearing this year’s stock in time for the new year.

Citing an example, he said some high-end models like BMWs are discounted by as much as RM30,000.

“On top of that, we are including a free five-year warranty package, which is typically sold separately for over RM30,000.

“With these two incentives combined, buying a car at the end of the year becomes a great deal.

“Although these cars depreciate by around RM30,000 annually, offering RM60,000 off means customers are still getting them at a considerably lower price,” he said.

Lim, who has been in the business for 21 years, said that rebates typically range from 6% to 8% on high-end car brands, depending on the model.

He said that car sales tend to peak at the end of the year, though the market in Penang is not as robust as in previous years.

He noticed that people on the mainland generally have more spending power compared to those on the island.

“With higher living expenses on the island, many seem less inclined to buy new cars,” he said

Lim also highlighted the challenges of selling electric vehicles (EVs), especially second-hand ones, which experience rapid depreciation.

“Not many dealers want to sell second-hand EVs because they lose value quickly – up to 30% in the first year.

“Some can drop by RM30,000 within just a few months. Second-hand EVs are more suited for buyers who understand the technology and have the financial means, including owning landed property.

“The demand for second-hand EVs is still limited. For customers who want to try out an EV, buying second-hand is more affordable, but for dealers, it’s not worth it as we risk losing money,” he explained.

Penang and Province Wellesley Used Cars Autocycles Dealers and Motor Financiers Association vice-president Ooi Eng Chye said second-hand car sales have taken a hit as more dealers offer significant discounts on new vehicles.

“Previously, many dealers did not offer discounts, but now most are knocking off thousands, making new cars an attractive option for those looking to upgrade.

“During year-end sales, some brands are offering discounts of over RM10,000 on certain models. Dealers are eager to clear their stock and buyers are happy to spend on brand new cars,” he said.

On second-hand vehicles, Ooi said buyers often wait for the new year to make a purchase.

“They know dealers have to lower prices to move older stock,” he said.

Ooi said there are second-hand EVs available, but most people still prefer to buy new ones.

“It has become a trend to buy new cars, especially with the lower prices, particularly towards the end of the year,” he added.