Like it or not, used car prices in Malaysia have been and continuing to fall in our market.
This tumbling values will continue in 2026 as a fierce new car price war, led by aggressive Chinese automotive brands continue to launch new exciting vehicles and provide big discounts.
Please note that big discounts are also coming from others (Honda, Tesla and even Toyota) which indirectly squeezes market values, causing significant depreciation, impacting financier profits from repossessions and forcing local brands to cut prices, leading to a major market correction and financial pain for owners holding onto overvalued older cars.
In the past 12 months we have seen aggressive pricing from Chinese automakers (Zeekr, Geely/Proton, Leapmotor, BYD, Chery) has forced competitors to slash their own prices to gain market share, setting new, lower benchmarks.
Then there was a cooling auto market and consumers waiting for deals mean lower sales volumes, increasing pressure for discounts.
Then there were aggressive New Car Deals from brands like Lexus, Honda (e:N1 rebates), Tesla (Model 3 cuts), Mercedes, BMW, Audi, VW and Chery (EV discounts) are offering massive price drops and rebates, making older models seem overpriced.
Meanwhile, repossessed cars are selling for far less than their financed value, causing losses for banks and financial institutions.
So, the value of used cars has been falling rapidly, sometimes leaving owners owing more on their loans than the car is worth. Used car dealers face inventory losses as new car price cuts make their older stock less attractive.
For used car buyers, they can find great deals on both new (especially EVs) and used cars, but be wary of massive price drops on newer models that can make your purchase depreciate instantly.
Sadly, for the used car seller, your car’s resale value is significantly impacted; you may need to sell for much less than you expected, leading to potential negative equity (still owing the bank).
