Although they expect sales to remain low in the next three months, they say the scenario is likely to change if the tax is removed as pledged by PH in its manifesto for its first 100 days in power.
Saujadi Hassan Ahmat, 47, said he was looking forward to seeing the GST abolished as this would help improve consumers’ purchasing power.
He said ever since the tax was implemented in April 2015, used automobile sales had dropped by 30% to 50%.
He added that it was difficult to attract and persuade people to buy as they had become more financially burdened.
“Without GST, the prices will go down. When people have more money, their purchasing power will rise.
“I believe that businesses should do well in term of sales,” he told FMT.
Saujadi said he hoped to see his business return to what it was in pre-GST times when he could get buyers more easily.
PH won the 14th general election on Wednesday, amassing 113 parliamentary seats while its ally Parti Warisan Sabah garnered eight.
Fahmi Ghezab, 39, who has been selling used cars for the last eight years, said the introduction of GST made it difficult to offer vehicles for purchase through loans.
“I can only sell cars priced below RM10,000,” he added.
He said many buyers might now delay making purchases until the tax is abolished and prices become lower.
“For those who don’t have much money it’s worth the wait,” he said.
Another dealer, Nura Habshah, said the move would decrease the burden on consumers and stimulate the market.
“I’m looking forward to after the next three months for purchasing power to rise again,” she said.