GEORGE TOWN: New electric vehicle (EV) models with upgraded features are launched at a rapid pace, to the extent that used EV prices are dropping fast, say industry officials.
This has also resulted in used car prices being stable.
Federation of Motor and Credit Companies Association of Malaysia president Datuk Tony Khor said the used car market remained resilient, although interest in EVs, especially among youngsters, was rising.
He said many still preferred internal combustion engine (ICE) vehicles due to their reliability, affordability and resale value.
He urged used car dealers to upgrade themselves, shifting from price-driven competition towards value, service quality and trust.
“Transparency is key and a professional inspection report goes a long way in building buyer confidence.
“In 2024, our association formed a partnership with an online platform that provides certified reports on used cars, providing detailed histories including accidents and insurance claims.
“Even minor incidents, such as a cracked windscreen, will appear in the report. We encourage both dealers and buyers to request these reports.
“This builds confidence among second-hand car buyers as many do not realise that what matters most is not the car’s age or model, but its condition,” he said, adding that the association has 4,500 members.
Khor said compact cars and sport utility vehicles (SUVs) remained the most sought after by buyers.
On used EV prices, he said they have softened due to aggressive new EV pricing and faster depreciation.
Khor said as a safeguard, used car dealers must check on demand before they take in stock.
“They need to check on the condition of the car and the specifications as well. Every model has different versions and specifications, so they need to buy the ones that offer better accessories to cater to the market,” he added.
Car dealer Lim Kok Wei said China-made vehicles, including EVs, entered the local market in large numbers over the past year, intensifying competition for used car sales.
He said most Chinese EV manufacturers appeared focused on volume, introducing new models rapidly and at competitive prices.
“When brand new cars are sold below expected levels ahead of the new year, consumers naturally question why they should consider a used vehicle when a new one is available within a similar price range.”
Lim said this trend has affected resale values, particularly as new models continue to be introduced quickly, including EVs.
“This leads to owners holding on to their vehicles for longer periods as selling them would likely result in a loss. In turn, the used market has fewer newer cars available,” he said.
