Expats guide: How to buy a used car in MalaysiaBuying Guides
Malaysia's diverse culture, thriving economy (meh), and stunning landscapes make it an attractive destination for expatriates. Embracing the thrill of living as an expatriate in Malaysia often comes with the desire for newfound adventures, and what better way to embark on them than with your very own set of wheels?
The road to acquiring a car, however, has its twists and turns, especially for expats. However, buying a used car from CARSOME is easy and transparent, even for expats! CARSOME offers fully refurbished used cars, with at least a 1-year warranty and a 5-day money-back guarantee for added assurance! On top of that, their CARSOME Consultants will guide you throughout the car-buying process, making it simple and stress-free.
If you are considering buying a used car, there are certain requirements and guidelines that you must be aware of. Here's a comprehensive used car buying guide for expats in Malaysia, outlining the necessary documents, eligibility criteria, and bank loan regulations.
Residency status & documentation
Before purchasing a car in Malaysia, expatriates must ensure they possess the appropriate documentation. This includes a valid passport, a valid visa or work permit, and a valid international driving license. Note that you will also be required to provide proof of employment and a local address for any car loan-related matter.
Eligibility for car loans
Expatriates in Malaysia are eligible for car loans, although certain criteria must be met. Most banks require applicants to be between the ages of 21 and 60, possess a valid work permit or visa, and have a minimum income of RM 3,000 per month. Additionally, some banks may have specific requirements regarding the duration of the expatriate's employment contract.
CARSOME will assist you with the car loan application process, so you don’t have to worry about it.
Down payment & loan amount
Typically, banks in Malaysia require a down payment of 10% to 40% of the car's purchase price for expatriates. The margin of financing may be reduced to just 60% to 70% of the value of the car, instead of the usual 90% for most local citizens. This down payment can be paid in cash or through a combination of cash and the trade-in value of an existing vehicle. The loan amount extended by the bank will cover the remaining cost of the vehicle.
There may also be requirements for a guarantor who is most likely to be your employer. However, this guarantor requirement applies to even locals, so don't feel so bad. In the end, it is up to the bank's discretion.
Loan tenure & interest rates
Loan tenures in Malaysia range from 1 to 9 years, providing flexibility for borrowers to choose a repayment period that suits their financial situation. Interest rates may vary depending on the bank and the chosen loan package. However, for expatriates, things might be different, loans given are capped at a maximum of 5 years, regardless of whether it’s a new or a used car. Still, you should compare offerings from different banks to secure the most favourable terms.
Required documents for car loan application
This is the list of documents needed for expats to apply for a loan:
✅ Valid passport
✅ Valid driving license
✅ Working permit or residency permit
✅ Copy of employment letter
✅ Latest 3-month bank statements
✅ Latest 3-month payslips
✅ Local (Malaysian) guarantor
Insurance and road tax
In Malaysia, it is mandatory for all vehicles to be insured. Expatriates must obtain motor insurance to cover third-party liability as well as damage to their own vehicle. Additionally, road tax must be paid annually to legally operate a vehicle on Malaysian roads.
When you buy a used car from CARSOME, the fixed price you see listed on our website includes not just road tax, but also 1-year warranty, ownership transfer fee, Puspakom inspection fee, and loan processing fee.
Choosing the right car
Once the necessary documents are in order, expatriates can begin exploring their options for purchasing a car. Malaysia offers a wide range of vehicles, from compact city cars to larger SUVs. Consider factors such as budget, family size, and intended use of the vehicle when making this decision.
You can browse the largest quality used car inventory on CARSOME website or app for any cars that you need, from hatchback to SUV.
Registration and transfer of ownership
Once the car has been selected and the loan approved, the vehicle must be registered with the Road Transport Department (JPJ) in Malaysia. This process involves completing the necessary forms, providing proof of identity and residence, and paying the required fees. Don’t worry, if you are buying from CARSOME, they will assist you with the paperwork so you can relax and wait for the car to be ready.
In conclusion, purchasing a car as an expatriate in Malaysia is an exciting endeavour that offers a sense of freedom and convenience during your stay. By ensuring all required documentation is in order, understanding the eligibility criteria for car loans, and navigating the registration process, expatriates can smoothly acquire their desired vehicle. With careful planning and adherence to local regulations, driving in Malaysia can be a fulfilling and enjoyable experience for expatriates.
If you’re looking for quality pre-owned cars, start your shopping at CARSOME, the best value buy for quality pre-owned cars.
At CARSOME, we are committed to providing a seamless and convenient car-buying experience. With a rigorous 175-point inspection, you can trust that every vehicle meets the highest quality standards. Our end-to-end service offers a wide selection of cars from 30 reputable brands, with dedicated consultants ready to assist you.
Enjoy full transparency with upfront information on pricing, inspection reports, and 360-degree views. We also take care of all the paperwork, financing, and insurance, ensuring a hassle-free journey from start to finish. Plus, with the option of test drives seven days a week and the flexibility to have your new car delivered to you, convenience is at the forefront of our service. Experience peace of mind with CARSOME, where your satisfaction and trust are our top priorities.
Lastly, if you prefer to do all that on the go, the CARSOME app is just what you're looking for. You can download the app by clicking here.
All CARSOME Certified cars are quality assured through a stringent 175-point inspection and professional refurbishment. Additionally, each car comes with a fixed price with no hidden fees, five-day money-back guarantee, and one-year warranty. Visit CARSOME today or download the app now.