Used Car Prices Dropping As Car Prices Expected To Rise Next Year

According to Ooi Eng Chye, vice-president of the Penang and Province Wellesley Used Cars Autocycles Dealers and Motor Financiers Association, used car prices will be reduced by 10% to 15% during this period due to the expectation that car prices will rise next year.

Following that, used car dealers in the area are attempting to take advantage of the situation by offering steep discounts on vehicles before the end of the year.

He also stated that those who sell their cars now will suffer a similar percentage loss because it works both ways.

"Some sell their cars as they want to buy new ones. New cars tend to get cheaper at the end of the year as they want to clear their old stock,” he told carsifu.

Ooi also mentioned that Perodua was a popular choice in the used-car market because it depreciated at a rate of less than 10%. Perodua cars, particularly the Myvi, are regarded as valuable and in high demand by used car dealers. “There is a market for Perodua cars, more than Proton vehicles,” he told carsifu in an interview.

However, Ooi stated that the market was still recovering from the pandemic and that they were still unable to make large profits as they had previously.

“We used to sell 100 cars a month. But now, selling 15 cars a month is considered good.

According to a recent Ken Research report titled "Malaysia Used Car Market Outlook to 2027," one of the distinguishing features of the Malaysian used car market is the notable preference for organised sales, which is supported by the emergence of online platforms for used car transactions.

According to the report, the trend will continue to shape the market in the near future. Kuala Lumpur (KL) and Selangor are expected to lead in terms of demand, accounting for approximately 25% of all vehicle registrations.

Current Market Situation The report also identifies the Malaysian used car market as being in late growth, owing to the prevalence of online players and original equipment manufacturer (OEM)-certified dealerships.