DEALERS COULD FACE INVENTORY LOSSES
Dealers could also face losses on vehicles already in inventory if market prices adjust before those cars are sold, said industry players.
Mr Eric Chua, honorary secretary of the Singapore Vehicle Traders Association, told CNA that any changes to policies would create adjustment periods for the industry.
“It is a process where the dealers would have to go through to clear their current inventory, which will run into risk of losses, and then it will moderate and regulate after a while,” he said.
Asked how the dealership might respond if demand weakens for particular models, Mr Ang of MV Auto said it could lower asking prices, offer less for trade-ins or carry fewer units in stock.
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