Business slows for Jakarta's car dealers

JAKARTA (JP): Car dealers have been puzzled by the sharply rising number of people intending to sell their cars, especially the luxurious ones, but at the same time are faced with scarcity of buyers.

Contacted separately on Saturday, dealers along Jl. Pecenongan and Jl. Samanhudi in Central Jakarta, Mangga Dua in West Jakarta and Pondok Indah in South Jakarta said they were suffering from financial losses.

Edi Wijaya, the owner of Duta Motor on Jl. Pecenongan, said that due to the lack of buyers many dealers were living on savings.

"We can only sell 40 percent of cars we buy," said Edi, whose business specialized in luxury cars such Mercedes Benz and BMW.

He said that an average of four to five people came to his showroom every day to sell their cars. "In the past I used to buy a large number of cars to strengthen my stocks. But now we have to be selective -- we buy only those that we are sure we can sell," he said.

It was not clear if the major riots hitting the city in recent months made more eager to get rid of their luxury cars, an obvious symbol of wealth.

"It's no longer easy to find buyers at present," he said, indicating about 10 luxury cars that he said had been sitting in his showroom for more than a month. "Very few are interested in buying them."

In previous years car sales used to increase sharply in the period before the Idul Fitri holiday season, he said. Last year, for example, Edi claimed to have sold about 50 cars a month.

"But since December I have only sold five cars," Edi said.

Edi admitted that he was forced to trade lower priced vehicles in a bid to keep his business afloat. "Like it or not we have to adjust to market demand."

He said that there were many car dealers who were forced to stop their business, especially those who relied on bank loans with high interest rates. "Along Jl. Pecenongan alone, out of about 40 show rooms, five have been closed down," he said.

One showroom owner in Pondok Indah said that people were choosing lower class cars to reduce the risk of being victimized by car thefts and street crimes.

Same mood

Like other car dealers, he also turned down many people trying to sell their cars to him.

"I think all car dealers are doing the same thing now," he said, asking not to be identified.

The dealer -- who specialized trading minivans -- said he wanted to close his business and wait for an improvement to the country's economic and political troubles.

"I am no longer able to have a large stock. We don't have enough capital for that, and besides, there are no buyers," he said.

He recalled that during last year's Idul Fitri season he sold about 20 cars in the month.

But on Saturday, his showroom in Mangga Dua displayed only two Kijang and Isuzu Panther vans, while workers sat idle.

"If the conditions don't improve in the next six months, I think I should close down the shop," he said.

However, businesses dealing in cheaper vehicles experienced less problems.

Rudy Ciputra of Motor Mahkota on Jl. Samanhudi said that even though there was a decrease in car sales, the effect was not so big.

"In December I could sell 11 cars and bought eight cars, so the business was still good. But I don't know whether the condition will still be like this in the future," he said.

He said that he could sell five cars a day during "good days". (ind)