Differences Between Showroom Dealers and Home-Based Used Car Sellers

JAKARTA – Used car showroom dealers and home-based sellers have different approaches, particularly as the used car market begins to slow down as it is now. The most noticeable difference lies in operational burdens and profit standards. Therefore, showrooms tend to be more cautious when purchasing stock of used diesel cars compared to home-based traders. Singgih from Willies Mobil in Depok, West Java, said that used car showrooms choose to play it safe due to fears of falling car prices. “Even the neighbouring showroom still has many units that are ‘stuck’. Meaning, at what price did they buy them, while now the market price has already dropped,” he said. According to him, this situation makes showroom traders unable to recklessly take on units just to chase stock. “That’s why now it’s better for us to play it safe,” he said. Singgih explained that showroom traders have much higher operational costs compared to home-based traders. Therefore, sales strategies and profit-taking also differ. “Meanwhile, showrooms on average have to pay rent, salaries, and other needs. It feels impossible for operational costs to be below Rp 10 million per month,” he said. “If home-based traders make a profit of Rp 3 million, they might already let it go,” said Singgih. “But if a showroom takes a profit of Rp 3 million per unit, selling 10 units might not even cover operations. So, I’m sure the profit standard is indeed different,” he said.