PETALING JAYA: The outlook for Malaysia’s used car industry this year is expected to remain stable, underpinned by sustained demand from value-conscious consumers seeking cost-effective and dependable transportation.
Federation of Motor and Credit Companies Associations of Malaysia president Datuk Tony Khor Chong Boon said the used car market has remained relatively stable during the first five months of 2026.
“While there are some variations across different states and market segments, overall transaction volumes are generally comparable to the same period last year.
“We have not seen any significant growth or decline in the market so far,” he told StarBiz.
Khor noted that the used car industry continues to benefit from consumers seeking more affordable mobility options, particularly amid rising living costs and economic uncertainties.
“Many buyers remain value-conscious and view used vehicles as a practical alternative to new cars.”
Nevertheless, he cautioned that the industry continues to face several challenges, including stricter financing approval requirements, higher operating costs, increasing competition, and changing consumer expectations regarding vehicle quality and transparency.
Carsome group chief business officer Aaron Kee concurred with Khor’s sentiment that the used car market has been stable, so far this year.
“This is also consistent with the wider automotive market, where new car sales have been flattish year-to-date after a record year in 2025.
“Interestingly, we did not see a major dip in both new and used cars despite broader geopolitical uncertainties and also recent news on petrol and diesel rationalisation.”
Kee said demand has been more resilient than expected with concentration on practical, fuel-efficient models with strong resale.
Khor said the best-selling used vehicle models continue to be those that are affordable, reliable, fuel-efficient and enjoy strong resale values.
“Among the most popular models are the Perodua Myvi, Bezza, Axia, Proton Saga, Honda City, Toyota Vios and Hilux.”
Khor said these models remain highly sought-after because they offer lower maintenance costs, a wide availability of spare parts, good fuel economy and strong market acceptance. “In addition, banks are generally more comfortable financing these models due to their strong resale value and established market demand.”
Kee said demand continues to be strongest for practical, reliable and affordable models. “On our own platform, the pattern mirrors the wider market, and it is consistent in the way that the cars Malaysians buy used, are those they trust to live with for years.”
Kee also observed that national makes such as the Perodua Myvi and Axia remain among the most popular used car models, while compact sedans such as the Honda City and Toyota Vios continue to see stable demand.
“These models perform well because they win on the math of ownership and meet the core priorities of Malaysian used car buyers.
“They are known for reliability, fuel efficiency, lower maintenance costs and day-to-day practicality. They also benefit from wide service support, easy spare parts availability and strong familiarity among Malaysian consumers.”
For car buyers, Kee said the decision is not only about the purchase price. “Total cost of ownership, resale value and confidence in long-term usability are equally important.”
Going forward, Kee expects the used car market to stay resilient through the rest of 2026, and to hold up better than new vehicles. “Demand for used cars is expected to remain supported by value-conscious buyers who are looking for affordable and reliable mobility options.”
However, broader macroeconomic uncertainty, fuel price movements, the upcoming state elections and the adjustment period following the new hire-purchase framework, will keep sentiment measured, Kee said.
“For the full year, we see used car demand holding to be at least as firm as 2025, if not better.”
Khor, meanwhile, remains “cautiously optimistic” about the outlook for used cars in the second half of 2026.
“Malaysia’s new vehicle market is expected to remain relatively stable this year, and we anticipate a similar trend for the used car sector.
“Based on industry estimates, total used vehicle transactions in 2025 were approximately 870,000 units. For 2026, we expect the market to remain at a similar level, potentially ranging between 850,000 and 900,000 units, depending on economic conditions, consumer confidence and financing availability.”
Rather than anticipating strong growth, Khor said 2026 is shaping up to be a year of market consolidation. “Dealers are placing greater emphasis on inventory management, digitalisation, vehicle quality assurance and customer confidence.”
Looking ahead, Khor believes that the long-term outlook for the used car industry remains positive.
“Increased transparency through vehicle inspection reports, vehicle history verification and stronger consumer protection measures will continue to enhance buyer confidence and support the sustainable growth of Malaysia’s used car market.”
He added that the used car industry remains one of the most resilient sectors within Malaysia’s automotive market.
“While we may not see significant growth in 2026, the market remains healthy, stable and supported by strong consumer demand for affordable and reliable transportation.”
