PETALING JAYA: Used car players expect sales in 2026 to remain steady, on the back of stable financing capacity and consistent demand from price-sensitive buyers.
Carsome Group chief business officer Aaron Kee said volumes are likely to remain broadly in line with 2025’s performance, rather than materially exceed it.
“We expect 2026 to remain steady. The segment is supported by stable financing capacity and sustained demand from value-conscious buyers,” he told StarBiz.
As earlier waves of electric vehicle (EV) adoption mature, Kee said more EVs will enter the secondary market.
“Growth in this segment will depend on resale transparency, battery confidence and pricing benchmarks, representing a gradual structural evolution rather than a short-term spike.”
Federation of Motor and Credit Companies Association of Malaysia president Datuk Tony Khor meanwhile said he is cautiously optimistic about 2026.
“If macroeconomic conditions remain stable and financing policies stay supportive, we expect used car sales to maintain a steady momentum, with potential single-digit growth compared to 2025.”
Khor added that the affordability gap between new and used vehicles will continue to drive demand in the pre-owned market.
“We believe the used car sector will remain a key pillar in ensuring mobility accessibility for Malaysians across income segments,” he said.
Khor said used car sales in 2025 “remained resilient” despite a more cautious consumer environment.
“Based on feedback from our nationwide members, total industry transactions in 2025 showed a marginal improvement compared to 2024.
“Demand remained supported by the B40 and M40 segments, as many buyers continued to seek more affordable mobility options amid higher living costs.”
Nevertheless, Khor said the used car industry faced several key challenges in 2025.
“These include stricter bank loan approvals, especially for vehicles between seven and nine years old.
“There were also higher operating costs, including rental, digital marketing and compliance expenses.”
Khor added that there was also increased competition from online direct-selling platforms.
“There were also pricing uncertainties in the growing pre-owned EV segment.
“Overall, while growth was moderate, the used car sector continues to play a vital role in supporting Malaysia’s automotive ecosystem.”
Kee meanwhile said used car sales in Malaysia moderated in 2025 compared with 2024, as the competitive landscape expanded.
“The entry of new Chinese brands and a wider range of EVs, many competitively priced, increased consumer choice across segments.
“Purchasing decisions are increasingly shaped by technological advancements, particularly in Chinese models offering strong specifications at accessible price points, alongside considerations such as total cost of ownership and resale value.”
Timing, was also a factor, according to Kee.
“Some buyers brought forward new vehicle purchases ahead of the expiry of the tax exemptions for fully imported EVs, which influenced transaction patterns during the year.
“At the same time, locally assembled EV models are expected to sustain adoption beyond the incentive period,” he explained.
Still, Kee said the used car segment continues to serve a broad mass market focused on practical ownership outcomes.
“As more vehicles, including EVs, enter resale cycles, pricing will increasingly reflect actual supply, demand and resale performance, contributing to a more balanced secondary market.”
Khor said some of the best selling used car brands last year were the Perodua Myvi, Axia and Bezza, Proton’s Saga, X50 and X70 models, as well as the Toyota Vios and Honda City.
“These models performed well due to strong fuel efficiency, low maintenance costs, good resale value and easier financing approval, due to their high market acceptance.
“Sport utility vehicle or SUV demand in particular remained strong among young families and first-time upgraders,” he said.
