Malaysia’s Used Car Market
In today automotive industries, most of the consumers somehow will consider to buy used car instead of new car after they have make the decision to buy a car. Today second hand car has become popular choices among Malaysian especially those who is belong to lower or middle annual income group. The used car market has become more active compared with last time and this is because not much consumers are afford to buy new car. Even we know that the new sedan with high quality of any brand roughly cost up to RM 80,000.00 to RM 100,000.00.
In Malaysia automotive industries we can see that the numbers of second hand car dealers are growing and the used cars owner are increasing as well. There are so many reasons why Malaysian wants to buy used car as part of the reason Malaysian have a perception that new car is expensive and not worth to buy due to expensive prices. Even today we can see a lot of popular second hand car such as Toyota, Honda, Perodua and Kia. The reason is most Malaysian trust more on the imported used car if compared with local used car. The best place to find second hand car definitely you can get the information from the used car website which provides the cars information, price, car dealers contacts and the picture of the car.
When the consumers had decided to buy a car, the decision making process somehow are affected by few factors that included the total of car loan, the depreciation of the car value, maintenance of the car, average income and the quality of the car that come into the buyers consideration. Even nowadays many consumers choose to buy used car compared with the new car. Now what we can see is the trend of today used car market considered as popular as new car and everyone understands that why more and more Malaysian will consider buying used car.
After we had looked into detail and identified some factors that will affected car buyers decision and the used car market, now with some useful information we will see why Malaysian will consider to buy used car instead of new car. First of all the first factor is the average income of Malaysian. Regardless of those who had high annual income which average RM 60,000.00 a year who are affordable to buy new car, but for those whose the income average from RM 36,000.00 to RM 48,000.00 considered as low to middle income group that the used car is more affordable. If much more Malaysian fall into low to middle income group due to the economy factors and fluctuation of inflation has affected to the used car market as well. From here we can see that the trend of the used car will be more popular compared with new car. I dont know that this is good news for the used car dealer but definitely is a bad news for those who prefer to buy new car.
As for the information, when want to buy a car you need to understand how much total of loan that you are going apply from the bank. It is normal that the loan interest for second hand car is higher than new car. The car loan not only depends on the average annual income but also the affordability to pay back the loan plus interest. The new car interest may roughly around 3.8% to 4% depends on banks that the best to be offered and surprisingly the interest for second hand car can be even more higher than 4% which is subject to the bank or the car dealer offer. This loan interest definitely will affected the used car market as if the interest rate keep going higher and higher, therefore less people will buy used car anymore.
Furthermore buying a second hand car helps those used car consumers skipped from the high car value depreciation because usually the high depreciation occurs in the first to second year. But if with the new car you actually pay more from the actual car price from the installment included the monthly interest. Many people will think that second hand car need high maintenance and actually its depends on how the ex car owner take care of the car. This definitely you need to do some survey first and get the car for inspection before pay the down payment.
If you want to compare the quality between the new car and used car, I can tell you that definitely the quality of new car is better than the used car. One thing that you need to understand that new car mean everything is new, the engine is new and even the parts are new too. Somehow it is not really mean the used car quality is bad but it is not as good as new car. The issue here is, used car sometime need to be maintained well in order to keep the car performance smooth and deliver good driving experience. The maintenance of the used car sometime maybe need to spend a lot of money which this is depends on the years of the car. Even in today used car market, the numbers of car owner send their car for service and inspection most of it is used car owner. When we see all the car workshops the number of used car is higher than new car.
Well, to buy new car or second hand car is very subjective decision for each individuals and its really depends on you and what is your opinion of the used car. As mentioned earlier, annual income and the car value depreciation are the factors of why Malaysian will considered buying used car even they afford to buy new car. From all the information gathered, my opinion is the second hand car is worth to be invest as can avoid from the first 2 years of car depreciation and no need to waste a lot on the interest rate.