Why are second hand cars in Malaysia so expensive?

[Starkiller]

Just been wondering while viewing the marketplace, mudah etc. I realized that compared to overseas like UK, Aussie and Japan we place high value on second hand cars, why is that? Top gear stated in an episode they did to find a car less than 5K pounds (loosely translated to 25K ringgit) and I was amazed at the cars they found. Example and RX-8 with only 25K mileage for RM25,000, you'd never find a deal like that in Malaysia. So yeah, why do we place high value on second-hand cars?

 

[wsukun]

i will start this by discussing the public transportation back in Msia

 

[C99D-MMC5537]

one answer only to this question. Because our price for new car is so expensive.

 

[wsukun]

then it will lead to the question, why new cars are so expensive?

 

[stevenseahkl]

Hahahahaaha... Now this is a very Malaysian answer... Simple, direct, minus the intellectual bs which will only tax our brain power. Might as well focus it on money making.

 

[EvolutionZ]

car is expensive but maintenance is not so expensive...in some country, cars are cheap, but maintaining it is expensive...i.e need to buy car park, expensive repair cost & high petrol price...pros and cons...but i do agree, 2nd hand car is expensive here......
mainly becos bank can give high loan....so it keeps the value high.

 

[autocrosser]

Why are new cars expensive, he asked? Is that a joke or is that a serious question?
New cars are expensive in Malaysia because of the high duty imposed on the imported parts and cars. If people don't already know that already.

Another reason is probably that there are enough gearheads who are willing to pay the exorbitant asking price of the dealers. My opinion.

Back to the original question. Expensive original price leads to expensive resale value. That's the only reason and only plausible explanation.

 

[Izso]

Nice one autocrosser.

And let's not forget the protectionistic policies to look after our local manufacturers...

 

[AD_EG]

yup, and the answer to why is our tax so much more higher than other countries ? is answered by izso...

 

[teo1957]

one answer only to this question. Because our price for new car is so expensive.

Expensive original price leads to expensive resale value. That's the only reason and only plausible explanation.

IMHO these are quite the more accurate answers to the question. Consider also:

1. Expensive price of new cars leads to credit purchase.
2. Credit purchase of new cars leads to credit purchase of used cars.
3. Credit purchase of used cars leads to market price set by credit institutions.

Where there are no use of credit, there will be no use for price control by credit institutions. If a KE70 is on sale for RM3,000, no need to go to bank to ask for current market price. Different scene for a Saga BLM on sale for RM25,000: you need to kowtow to banks, bank say one thing you follow. Our market, is effectively controlled by two entities:

1. New car: National Automotive Policy
2. Used car: The money lenders

 

[ixeo]

Why are new cars expensive, he asked? Is that a joke or is that a serious question?
New cars are expensive in Malaysia because of the high duty imposed on the imported parts and cars. If people don't already know that already.

Another reason is probably that there are enough gearheads who are willing to pay the exorbitant asking price of the dealers. My opinion.

Back to the original question. Expensive original price leads to expensive resale value. That's the only reason and only plausible explanation.

Not entirely accurate on the part of why new cars are expensive.
Even if one is willing to pay the high duty imposed, you are unable to bring a car into Malaysia without the mighty AP.

Like the TS said, used RX-8 is only RM25,000. Even after 100% duty, its only RM50,000. Still selling for RM90k recon. Thats RM40,000 profit for holding an AP, better than being a car manufacturer, lol.

What is AP? A piece of paper that grants you the power to import a car legally to be on the roads of Malaysia. Without this piece of paper any car imported is reduced to track/show car duties only.

Who can get AP? They say its objective is for promoting and providing opportunities for bumiputera entrepreneurs. However not every Bumiputera entrepreneur can waltz in and get one, sadly. You probably have to be somebody or know somebody.

 

[AD_EG]

ixeo...could not have said it any better

 

[charadeturbo]

reason why i am still holding to my current car is because Malaysia car is soo Xxxkxxg expensive

 

[AD_EG]

i really pray for the day, where those taxes are reduced...finally...everybody will have a better chance of owning better condition/quality cars... for me ive only been owning second hand cars...only brand new car i had was my wira...hopefully the tax can be reduced even by half and that stupid AP issue to be fair....maybe the next GE can bring some change...

 

[Izso]

I wait for the day it's an open market. Then I'll watch Proton die and everyone drives imported cars for the same price.

 

[arrowhead]

even with the protectionistic policies, proton is still loosing money right? lol

 

[Starkiller]

Hahah thanks for all the responses, a little more enlightened now. However i still think its ridiculous that a 2008 car can still be sold for more than 100K ringgit. Whats even more disturbing is cars with more than 100K mileage still sold for high price. I understand that to get a car in the first place is expensive but still, i don't think the depreciation value placed on them is accurate, its more like "agak-agak"

 

[AD_EG]

hehehe...my friend bought a car for 40k..spent about rm5k on it...and sold it at 58k.cause so called "market" says thats the price....

 

[loose_end]

Ada AP ma..

 

[AD_EG]

no no bro...he got a good bargain for a 2nd hand car...and due to the "market" price of the car...even if its 15 years old...he still can sell at 58k...he didnt get any AP etc.