GEORGE TOWN: Buyers are opting for used cars for various reasons, from getting a higher-end model at a lower price to keeping monthly instalments affordable.
However, some warn that the savings may not outweigh the risks of buying an older vehicle.
Sales executive Jason Wong, 38, said his RM80,000 budget could get him a higher-end used car with better features and build quality than a new entry-level model.
He is considering a three- to five-year-old sedan or sport utility vehicle (SUV), prioritising comfort, safety, and performance over the latest technology.
“I could get a higher-end model with better features and a more comfortable cabin,” he said in an interview yesterday.
Wong said buying used could also help him avoid the steepest depreciation, but he would check the vehicle’s service records, mileage, and accident history before committing.
“A car that is RM10,000 cheaper may not be a bargain if I end up spending thousands of ringgit on repairs,” he added.
Software programmer Muhammad Ikram, 42, has booked an eight-year-old multi- purpose vehicle (MPV) for RM60,000, half its original price, to accommodate family trips without paying for a new seven- seater.
He said his sedan was sufficient for daily use, but the MPV would allow his family and relatives to travel together occasionally.
“The MPV was in pristine condition, had low mileage, and was inspected to ensure it was in good running order. As I will only use it occasionally, buying used makes more financial sense than paying much more for a new model,” he said.
For fresh graduate Daniel Tan, 24, a used car offers a way to commute to work without taking on a large financial commitment at the start of his career.
“I am looking for an affordable second-hand compact car, with lower monthly instalments as a priority. Earning less than RM3,000 monthly as a graphic designer, I would rather not commit to a big monthly payment before my income increases,” he said.
However, company administrator Amy Lee, 45, is leaning towards a new Perodua Axia after finding that some seven-to-eight-year-old used cars cost only about RM10,000 less than a new vehicle.
With the Axia priced at about RM30,000 to RM40,000, she said the relatively small price gap made it difficult to justify buying an older car, particularly one with high mileage.
“Years ago, when I first started working, I bought a car that was nearly 10 years old. Affordability was my main concern, and I just needed a car to get around.
“However, frequent breakdowns eventually made the purchase costly, with engine and air-conditioning repairs taking a toll on my finances,” she said.
Federation of Motor and Credit Companies Associations of Malay-sia president Datuk Tony Khor Chong Boon said the used-car market remained relatively stable, with an estimated 850,000 to 900,000 used-vehicle transactions expected this year, including wholesale and retail transactions.
“Not all vehicles are experiencing declining prices. Affordable, reliable, and popular models remain in demand, while certain luxury vehicles, less popular models, and some EVs [electric vehicles] face greater depreciation,” he said.
Khor said aggressive new-car promotions and competition from Chinese brands and EVs are also putting pressure on used-car prices and dealers’ profit margins.
