But let’s shove all that to one side because right now is one of the best times to buy used cars. Prices are dropping across the board for ones that are older as well as those that are so new you can barely call them used, from all manner of makes and models. Some used cars have seen a 20 percent drop in price from where they stood just a few weeks or months ago. And if you’re willing to shop for one outside of the usual suspects, you’re in for even more of a deal.
At Carlist.my, we have the largest new and used car online marketplace in Malaysia, and when certain widespread shifts occur we are alerted to them immediately. To that end, we’ve come across some findings that we'd like to share.
There are a number of factors at play, but let’s boil down to why this is an opportune time for the used car buyer:
Manufacturers And New Car Dealerships Pushing For Increased Sales – For one reason for another, new car dealers are becoming more aggressive in their push to gain more customers quickly. They are offering discounts, rebates, extended warranty packages, zero percent interest, etc. Every customer they win over is one lost that might have otherwise considered a used car.
New Cars Prices Expected To Increase In Response To Weaker Ringgit – Part of the reason that more and more manufacturers and new car dealers are scrambling to win over customers now is because their own hand has been forced to implement sweeping price increases to avoid sustaining losses caused by a weakening Ringgit. They expect a dip in sales after the price increase, an obvious prediction paired with an obvious reactionary strategy. Some manufacturers have already announced price increases, as we have reported on previously.
The Market Is Flooded With Used Cars. Depreciation That Works In Your Favor – The first two reasons detailed above also play into the slowing pace at which used cars get bought. These are cars that aren’t even considered old, and many have barely been used. Because these cars still depreciate while sitting on used car lots nonetheless, dealers are more and more incentivized to get them sold. And that’s now a great benefit to you.
New Guidelines By Banking Institutions Necessitate A Price Drop For Used Cars – While we don’t have the time to detail the finer points of these newly revised guidelines (newspapers have already reported on similar matters), the bottom line is that the prices of used cars have gone down while new car prices, as we mentioned a few paragraphs above, will continue to increase. In fact, there is no set threshold for how far used car prices could drop. And while it won’t be a shockingly sharp fall, it will be significant.
Here’s some examples of great cars you wouldn’t believe are now going for cheap:
This Toyota Camry is just five years old as on sale for RM75,000. It was worth approximately RM180,000 when it was in the showroom. For all you know, it's running just as well as it did then. Except now, its less than half the price.
When we found this 2010 Porsche Boxster on the market for jus RM240,000, we almost jumped. In 2010, this German sports car was going for a little over half a million Ringgit. And now? Less than half that.