Established models face price pressure as buyers weigh new options
PETALING JAYA: New-car price cuts and aggressively priced Chinese models are putting pressure on the resale values of newer pre-owned cars and used Japanese vehicles, industry players say.
Carsome group chief business officer Aaron Kee expects used-car prices to remain under downward pressure until year-end, as carmakers roll out promotional discounts and Chinese brands price aggressively.
Lower prices could improve affordability and accessibility, he noted in a written reply. Kee said used-car prices faced greater downward pressure this year than last due to stiffer competition.
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On Carsome’s platform, prices strengthened modestly in the first quarter on festive demand before moderating from Q2 onwards.
Popular models like the Perodua Myvi and Axia continue to benefit from established demand.
“However, strong demand does not necessarily shield these models from downward price pressure, particularly when more competitive new-car pricing changes the value proposition for buyers,” Kee said.
The top five wholesale models on Carsome this year were the Myvi, Axia, Honda City, Proton Saga, and Perodua Bezza.
Kee noted that cheaper new-car entry prices force comparable used models to maintain an attractive price gap. Reports show Perodua cut the Axia’s price by up to RM4,700 in August, bringing the entry-level 1.0G to RM33,900.
Resale values for used hybrids and EVs (electric vehicles), he added, remain relatively weak and uncertain compared with internal combustion engine models.
Conversely, Carro Malaysia CEO Derrick Eng said average used-car prices on its platform remained stable year-on-year between January and September, with consistency expected into Q4.
Eng said policies like new-car price cuts and EV rebates naturally cause minor price adjustments, especially for 2025 and 2026 pre-owned inventory and EVs.
“That said, these policies have not majorly impacted overall used car prices at Carro,” he said, adding that demand remains strong as buyers prioritise immediate availability and lower entry prices.
Carro’s best-selling models this year are the Myvi, Axia, Bezza, City, and Proton X50.
Unlike Carsome’s assessment, Eng noted hybrid resale values have held firm, depreciating at rates comparable with petrol vehicles.
“We’re seeing strong, steady demand for pre-owned hybrids, as buyers view them as the ideal balance between fuel efficiency and range confidence,” he said, noting growing EV appetite is also driving pre-owned EV inventory expansion.
Meanwhile, a Petaling Jaya used-car dealer speaking anonymously said price pressure is most acute among pre-owned Japanese vehicles, traditionally a staple for Malaysian buyers.
“Used car prices have dropped tremendously since early this year,” said the dealer who wanted to be known only as John, noting consumers now have far more choices across price points.
“People can look at Chinese EVs, Chinese petrol cars, or other new models with better specifications. That makes them less incentivised to buy a used Japanese car.”
John said the assumption that Japanese cars hold value well is being challenged as new entrants compete aggressively on price and specs.
The pressure is highest where used prices approach new Chinese model price points, as buyers weigh new-car warranties and updated technology.
