Malaysia used car market

One of the most important industries in the manufacturing sector of Malaysia is the automobile industry. In comparison to other industries, the automobile industry is a promising and a growing one, and contributes heavily towards the economic and industrialization process. Though the automobile sector of Malaysia is stable, but still the country import many used vehicles. Malaysians prefer to buy a used motor vehicle as new ones are quite expensive. The country import large numbers of used vehicles from various countries across the world, mainly from Japan. The main reason that contributes towards the popularity of Japanese vehicles in the country is that Malaysians trust more on imported vehicles rather than on local used cars.

For middle or lower average income group people, used cars have become more popular choices. The used car market is growing at a much faster pace in comparison to previous years. Low price, easy availability of spare parts, and higher resale value are the main parameters that contribute towards the popularity of used vehicles in the country. Along with easy availability at a reasonable price, used vehicles also help consumers to escape high car value depreciation because high depreciation occurs during first-second years.

Malaysians are fond of owning cars. With the population of around 30 million, there are 341 cars per 1000 people in the country. Even in comparison with many developed economies the vehicle ownership level is much higher in the country. In Malaysia, it is quite common to see a lot of used vehicles from Japanese automakers such as Toyota, Honda, and Kia. The used vehicle dealers in the country’s automotive industries are growing at a very rapid rate.

Malaysians prefer used vehicles over new is annual income and the car value depreciation. There are many online portals that help buyers to search for the vehicle that meets up their requirements. On these portals, dealers place their stock which gives buyers details about the vehicle, price, and other relevant information.

While importing a vehicle, importer should follow the necessary import regulations to make the customs clearance smoothly. It is allowed to import right hand drive vehicles that are under five years old in Malaysia. Once the vehicle enters the country, it is for inspection in order to check whether or not it matches with the country’s safety standards. Used vehicles imported into the country are subjected to high import duties and taxes. Import duty on vehicles ranges from 150%-300%, depending upon the cc of the engine. Sales tax calculated is based on the 10% of (CIF+ import duty charged).

The only place to bank upon for the importation of used vehicles is Japan. People from across the world prefer to buy Japanese used vehicles as they get dependable and reliable cars at practical prices. It is evident that buying a new car is quite expensive, thus Malaysians go for used ones as they get a quality vehicle at practical prices. Thousands of used Japanese vehicles are exported to Malaysia and the number is increasing continuously at a high speed every year.