SG: Shortage of used cars on sale after curb is lifted

After a two month reprieve from the authorities, the majority of the second hand car dealers locally have managed to clear a large percentage of their stock. However, it is unlikely that they will obtain the same amount of stock as compared to a similar period last year, for many car owners are tightly clinging on to their rides. Out of the 7000 used cars amongst several dealers, about 4600 have been sold. The most popular sellers are economical family cars, with the higher end vehicles being left in the lot. So why would obtaining new stock be a difficult task? Well firstly, dealers have to offer the owners a low price in order to make a decent profit on the cars. Another point worth mentioning is that the owners who have decided to get rid of their current cars would have to purchase a new vehicle, meaning that they have to fork out nearly 50% upfront to pay for their new car. The amount of money the dealers are offering would be nowhere near enough to pay for the downpayment for the new car, and as such, the supply of used cars will drop since more will stick to upgrading their old ride rather than replacing it.