Does pre-owned rule Malaysia's car market?

Free Malaysia Today

08-05-2025

Malaysians' increasing preference for pre-owned is driving the used car market.
PETALING JAYA : The market for used cars in Malaysia is dynamic and rapidly evolving. According to recently released reports, Malaysia's used car market size is estimated to be at US$26.5 billion in 2025, and is expected to reach US$34.47 billion by 2030, at a compound annual growth rate of 5.4% during the forecast period (2025-2030)*.
What are the trends driving this demand for used cars?
Economic conditions, consumer preferences, regulatory policies, and technological advancements are all factors that influence Malaysia's used car market. Government policies, consumer price sensitivity and the availability of financing are also key determiners.
A growing middle class and increasing urbanisation have created the need for reliable, cost-effective transportation solutions which has driven the demand for used cars. It has become a thriving market which offers a wide range of vehicles to meet diverse budgets and preferences.
For instance, in 2023, used cars accounted for approximately 65% of total car sales in Malaysia, as they offered cost savings of up to 40% compared to new vehicles. In 2024, the used car to new car ratio stood at 2:1 indicating an increasing preference for pre-owned vehicles.
Indeed, affordability is crucial to Malaysia's growing middle-class and used cars can cost 30-50% less than new ones.** The difference remains significant – even in 2025. Not only do used cars offer value-for-money and lower depreciation rates, buyers can also purchase premium models at a fraction of the cost.
Additionally, government policies and incentives related to used cars, such as End-of-Life Vehicles (ELV) and Extended Warranty programmes, are also expected to fuel the growth of the used car market.
The increasing availability of attractive financing options offered by banks and financial institutions also make the purchase of used cars more viable.
In 2024, over 40% of transactions related to used cars in Malaysia occurred online.
Rise of digitalisation – online marketplaces
One of the most significant trends shaping the used car industry is the surge in online marketplaces.
Contributing to the growing preference for pre-owned cars, online platforms such as CARSOME, streamline the process of buying and selling used cars, boosting sales and bolstering the used car market.
For instance, in 2024, over 40% of the transactions related to used cars in Malaysia occurred online.***
Three key factors contribute to this trend: increased confidence in digital platforms, accessibility and affordability, and the array of options available.
With online platforms such as CARSOME, customers have more transparency with access to detailed information such as history of vehicles, certifications, and customer reviews. This serves to build trust. They also offer convenience, as a customer can buy a vehicle even without visiting a dealership.
With reduced operational costs, digital platforms can offer more competitive rates, even flexible finance options and service packages. This makes used cars a viable option even for those who would not otherwise consider buying a vehicle.
Choice is also a big attraction. Online platforms offer a wider inventory than traditional dealerships. As such, buyers can browse to their heart's content, at leisure, and select from a vast collection to find exactly what suits their budget and their needs.
Tomorrow's technology – improving reliability of used cars today
Another factor contributing to the trend of buying used cars is the advancement of technology.
Technology plays a vital role in improving the reliability of used cars. As well as enhancing efficiency and accuracy, the integration of technology transforms how car refurbishment facilities and service centres operate, ensuring transparency and streamlining workflows.
Today, advanced diagnostic tools precision-powered by AI accurately identify issues in vehicles. Interfacing with a car's onboard systems, they provide real-time data on engine performance, brake health, and even minor electrical faults.
Technology improves other aspects too: from management software that optimises operations ensuring smooth workflow, to online platforms which bridge the gap between customers and workshops enabling customers to book services, compare pricing, and read reviews online.
CARSOME's Certified 175-point inspection is enabled by advanced technology.
One of the players currently leading the pre-owned market in Malaysia is CARSOME – Southeast Asia's largest integrated car e-commerce platform.
With a presence across Malaysia, Indonesia, Thailand and Singapore, CARSOME aims to digitalise the region's used car industry by reshaping and elevating the car buying and selling experience.
To that end, CARSOME provides end-to-end solutions to consumers and used car dealers, from car inspection and ownership transfer to financing, they offer a service that is trusted, convenient and efficient.
'Our end-to-end buying journey takes away the concerns which are common in a traditional used car buying experience. CARSOME Certified is the new standard for buying pre-owned cars backed up by our 175-point inspection together with our CARSOME Certified Refurbishment Process,' CARSOME states.
CARSOME's processes are easy to navigate and stress-free; and for added convenience, they handle all paperwork too. The extensive support they provide ranges from obtaining car insurance, offering comprehensive finance options to assistance in securing loans.
This transparent, customer-friendly approach, coupled with their efficient and effective digital platform gives CARSOME an advantage as the used car market continues to thrive in 2025.
Get more information about CARSOME here.
*Mordor Intelligence
** Tracedata Research
*** Tracedata Research