Ignorance is bliss. You have say, RM80k to RM100k to spend on a car. That amount can get you a Japanese brand B-segment sedan or hatchback, or a starter SUV from Perodua and Proton. Good options.
If you’re steadfast in your mission, the hardest decision would probably be choosing a number plate for your brand new car. Whether it’s the Honda City, Toyota Vios/Yaris, Nissan Almera, Perodua Ativa or Proton X50 you’re driving home, you can look forward to a safe and sure few years of motoring ahead. Well done and congratulations.
God forbid that you were sidetracked into the classifieds with the “What else can I get for the money?” question. Because if you did, the temptation of used cars is real. Let’s open that can of worms.
Fairly young BMW 3 Series for City money?
If you’re a sedan guy aiming for the City/Vios, it’s most likely that you’ve liked the BMW 3 Series for some time now, and have probably been fantasising about the original sports sedan. No? Sorry, just me then!
Now, everyone knows that E36 and E46 generations of the 3 Series are very cheap to buy, but they’re old and troublesome. And if you’re into prestige (not many will admit to being vain, of course), surely these old BMWs have long ceased to command “respect” – they’re just old cars to most people. Special exception for rare M cars; those will get enthusiasts drooling.
But the F30 is a different story. It’s the immediate past generation before the current G20, and our memory of it as a desirable new premium car is still very fresh. Did you realise that this body can now be had for below RM70k? Even with some refurbishment and/or accessories, it will still be within your budget, and F30s are of course still eligible for bank loans.
At below RM70k, you’re probably looking at the 316i from 2013/2014 with 134 hp/220 Nm. That’s not much, but with assistance from a turbo and the brilliant ZF 8-speed auto, it’s adequately fast and very comfortable. “Lite” it may be, but the 316i still very much a 3 Series. With an M Sport kit, it will look very much the part, too.
The pre-facelift 320i, with 184 hp/270Nm, is also priced comfortably below RM100k. Looking for something younger? 2016 examples of the facelifted 318i have recently dipped below the RM100k mark.
Now you’re in trouble. You start lurking in forums trying to suss out the reliability and potential issues, you ask around, you look for a first hand account, and you spend waking hours thinking about the BMW. You’re a long way from the original path now – sudah kena racun, as they say.
Safe or sexy?
Should you throw caution to the wind and go with the BMW, or stick to the safe original plan that is the virgin new car? There’s no right or wrong, really. It all depends on your priorities and aspirations, but go in with your eyes open. You can replace the 3 Series in the example above with any desirable used car and the pros and cons will largely remain the same – let’s go through a few.
When you’re buying a new car, you’re also buying certainty. Things are much less likely to go wrong in a brand new car, and even if they do, you’re covered by a factory warranty. This means that you won’t be dropped a bombshell for the first five years, at the very least.
Some manufacturers throw in free service deals as well, and this can save you some money down the line. Even if there’s no FS, the cost of regular servicing and maintenance is fixed – you know exactly how much service number 2, 5 or 8 will cost. These menus are publicly available, and we’ve used them to compare five-year maintenance costs for popular models – you can check out our Iriz vs Myvi, Ativa vs other national cars and pick-up truck cost comparos.
With a warranty and known maintenance costs, buying a new car virtually guarantees you reliable and straightforward motoring for a couple of years. No surprise bills, no wasted time.
On the other hand, a used car, even one that looks immaculate, might be hiding issues. Using the F30 example above, early facelift units from 2016 have warranties that expire this year, and all pre-LCI F30s are out of warranty. Needless to say, should anything go wrong, you’re on your own.
The best is to look for a used car with full service history; even so, wear and tear cannot be avoided and must be taken into consideration. Now, not having factory warranty isn’t a death sentence, but you’ve got to be proactive with maintenance and choose a reputable workshop.
There’s also the option of independent extended warranty providers. It works pretty much like insurance – pay an agreed sum per year and the company will cover the cost of any repairs. The scope of coverage and maximum payout is agreed beforehand. This is the sort of warranty provided by recond car dealers.
As consumers, we have a natural tendency to focus on the purchase price and ignore maintenance costs. In the case of new vs used cars, the sticker price may be the same, but the total ownership cost is very different – you’ll definitely have to spend more time and effort on the used car.
For the used option to be in contention in the first place, it’s probably a desirable model, perhaps European; this could mean higher parts prices. Getting the parts yourself from stockists, as opposed to leaving it all to your mechanic, might save you some RM, but there’s effort involved.
Now, “you’re on your own” may sound scary, but if you’re someone who finds joy in parts hunting, DIY and spending “quality time” with your car at the workshop, it may not be a bad thing after all. It’s a lot more hands on than the new car experience, that’s for sure.
I checked, the dream car is now attainable!
Ah, the dream car. Just go for it. You only live once. If not now, when? I’m with those cheerleaders, fully. But there’s a caveat: only if you can afford it.
Imagine road trips in a convertible, from the coast to the highlands, roof down whenever possible to take in the fresh air and life itself. It’s attainable you know, with early versions of the Porsche Boxster and BMW Z4 going for Japanese econobox prices. Or if muscle is more your thing, how about a first-generation Cayenne Turbo for less money than a Myvi? Come on, live a little la, the Internet goads you.
It’s a no brainer, they say. Yes it is, if that car guy friend or person online is paying the bills! Even more so than the relatively young BMW we mentioned above, the sports/performance car of your dreams will cost you. First, there’s the small matter of buying the car with cash, as HP loans usually aren’t possible.
Cross that hurdle, and you’ll realise that parts for old cars can be hard to come by, more so parts for rare old sports cars. Better get yourself familiar with the chop shop and don’t get into accidents. Of late, a few carmakers – like Porsche – have started to reproduce brand new parts for their iconic models, but these programmes are reserved for top tier legends; in any case, the stuff ain’t cheap.
Sorry to break it to you, but if your budget for a new car is RM100k and below, it’s likely that this dream car will bankrupt you. The rule of thumb is if you cannot afford to run a, say RM300k car when it was new, you most probably cannot afford to maintain an old one. The value of the car might have dropped, but last we checked, running costs are rather stubborn.
So, go for it, if you can afford it. Remember, you should be looking at total ownership cost and not just the purchase price. That Boxster will have to wait.
Let the first owner take the hit
That hit is depreciation. How else would you be cross shopping a Vios with a Porsche if not for the Big D?
Collectible rare models and hyped JDMs aside, depreciation starts the minute you sign on the dotted line. The rate at which the value of your car falls depends on make and model, but it’s a certainty. The idea is that if you’re into Continental cars or “cold door cars” (a Cantonese term for cars that are not high in demand), you can wait a little for a lot in savings.
Generally, depreciation is steeper for premium brand cars than bread and butter mass market models. For sports cars, rarity cushions the blow, and for enthusiast models, the good ol’ manual gearbox fares better than auto. The latter is applicable to anything from the Honda CR-Z to the cars hawked by Barrett-Jackson. While resale value is something to note, why not just go for what you like and treat depreciation as “usage cost”, and good RV as a bonus.
Play the percentages
If your used car option is more than a decade old, you’ll need a big bag of cash or a personal loan, and that should be enough to deter many. Hire purchase loans are possible for younger used cars, but note that the terms are not what you’d typically get with a new car.
Even if you ignore the low interest rate promos dangled by almost every carmaker, the typical interest rate for new cars comfortably beat what the banks dish out for used cars. Paired with the latter’s higher interest rate is a lower margin of financing. With a lower max loan amount, the downpayment has to be higher.
For instance, while that 2014 BMW 3 Series is still eligible for loan, you’d be lucky to be offered 80% financing and a maximum tenure of five years. It doesn’t look like a very old car, the F30, but early units are not far from the 10 year mark – the banks are protecting their own interests by being less generous.
Taken individually, the bigger downpayment, higher interest rate and shorter tenure may be palatable, but it all adds up – don’t be surprised if the monthly instalments are higher than expected, if you have been calculating with a new car template. Think of financing costs as a constant monthly punch as opposed to the big blow of maintenance costs – make sure you have the power to withstand before getting into the ring.
With eyes wide open
So, safe choice or the sexy option? No right or wrong, and each has its own appeal – an easy and straightforward autopilot of an ownership experience with the new car, or a “better” and more desirable used option that will require more time and money in the long run.
If you’re swayed by the sex appeal of the latter, check out our comprehensive used car buying guide where we list down the areas you should focus on. If you’re thinking that the point of this piece is to run down used cars, let me assure you that no day passes by in this office’s group chat without a couple of tasty Mudah listings being shared. Go for it, but with eyes wide open with regards to costs.
If you’ve been in this new vs used dilemma before, we’d like to hear what led you to your final decision and what clinched it. Those who only buy old cars, we already know what you think.
Looking to sell your car? Sell it with Carro.
My ex boss used to say. The premium car owner is either rich man or a foreman. The rich guy can afford it while the foreman can repair it by themself.
Japanese: buy new because good resale; Continental: buy 2nd hand and be sure U can afford maintenance
Buying a new car without AEB = same like expensive cars.
Buying used expensive cars = Buying new car without AEB
No warranty = less Features too
Buy P2. New car, new tech with AEB.. mampu milik
People who actually drives don’t give a damn about having AEB. Those who need AEB are morons who don’t keep their eyes on the road, hands on steering wheel. Talking instead of driving while looking at everywhere but what’s in front of them.
I’m thinking of getting a used Merc probably 2-3 years old. Most likely E class. Do you think it’s worth it?
Probably yes, as there’s still warranty to get stuff fixed if necessary. Assuming you’re talking about a local unit.
Both my 2014 A3 1.8T and previous 2010 325i were bought used (<3 years) and frankly, were extremely reliable. Hope I didn't jinx it.
Many people make the mistake of buying a used car, thinking it is cheaper and commit to a more expensive car than they originally would have budgeted for.
The real benefit of buying a used car is it lightens the financial load and commitment. It only makes sense if you have a budget of 100K, but decide to buy the same car used at 50K. Otherwise, if you buy a higher end model used at 100K, you are opening up yourself to potential bucket of worms.
If you can’t afford to buy one new, don’t assume you can afford the same car used.
As buying a used car can be a mixed bag, one needs to be prepared to do repairs and weight in the costs of maintenance. A fair bit of legwork (or finger work) needs be be done by joining forums and looking for parts. if you are a DIY’er and mechanically inclined, a used car remains a good option.
All my cars to date are used (all bought cash without loan). Yes, some of them does need repairs, but I have costed the potential costs of repairs into the overall budget and as long as the cost of repairs can potentially be less than the interest paid for a new car, then it makes sense.
Lets just say a 100K new car will cost about 15k in interest over 5 years loan. If I buy the same car used at 50K (cash), I can afford to spend 15K in repairs over 5 years and still be on top.
DSM,thanks for such good advice.
Generally,for used cars I prefer Toyotas.My 17 year old preowned Camry..you wont believe it.Only 4 absorbers,2 power windows changed ,besides the regular servicing.
I heard horror stories on those ‘lang moon chea”(low volume cars)where parts cost a bomb and are getting more difficult to source.
The same guy ranting here about Proton and aftersales but in the end only has a 17 yo used TOYOTA. I assume he has an ulterior motive for hating Proton that much despite not owning one.
It is good to have discussion on this.
If any sellers on Mudah, list out the potential cost of owning a used car, ie: the regular service + the not-so-regular service, I think it would help buyer in making a better decision in purchasing a used car.
There is one guy, I watched on youtube explaining on the cost of owning a used 1st generation A45 which I found to be helpful.
Malaysia need more of these. A win win situation for buyer and used car seller.
Most of these old BMWs and Mercedes didn’t even have basic ADAS that many cheaper new Vios, City and Almera are offering, even compare to new Altis or Civic. So it’s a matter of pride or foolishness to spend on them but if you can afford the maintenance costs, then why not, just swallow the pride lah.
Or u can wait it out as the newer breed of Conti cars have ADAS as standard.
No more F30 profile photo. Sold your X70 bro?
I doubt he ever had an X70 bro
I am a proud and accomplished driver. If you cannot drive a car properly to need ADAS, probably you shouldn’t be driving.
learn how to drive properly. learn how to properly react when your tyre loses some grip in the rain (release your throttle and not touch the brakes) and in other situations. Most of all, enjoy actually driving your car.
Having ADAS is just adding another layer of safety when driving, it is hard to predict those idiot that suddenly change lane, or kids that cross the road without looking. You maybe a good driver, but sadly there are many idiots on the road.
I buy both new and used vehicles depending on budget and the kit offered. It’s not that hard to get a used car but u do need to do a bit of research and factor in the costs before you go ahead with one.
The rules of High Risk High Return, its all about how you handle the risk. If you have go through all the channel and confident enough to handle the up coming issue and maintenance, why not?
I never knew that Porsche is a japanese car maker. Maybe i live in the wrong multiverse…
For continental car parts, find the company that manufactures the parts for the OEM.
names like Lemforder are basically the same thing just in different boxes.
Oh Danny tan…
Don’t you even have the basic manners to acknowledge your writing mistake and say thanks to those who points it out?
Just quietly edit?
If you cannot afford to run a 300k car when it was new you likely wont afford to run it even when it is older now, but if you already can afford for a 300k brand new, why on earth would you spend that much for a used car? Already alarm bells should sound when a 9yo luxury car depreciates until the level of Jap B segment.
Used cars only make sense if A) Very short ownership of 1-2 years and then move it on B) Brands & models that are proven reliable ie, Toyota, Perodua, Proton, Honda, certainly not conti or korean brands.
Buying a used BMW or Merc out of warranty is defo courting a hefty bill even if it don’t have hidden mechanical issues.
Once seen driving a Conti (new or used), it would be “malu besar” to be seen driving back oriental makes. Thus, continue bleeding money to sustain conti car ownership.
Whichever the case, I strongly suggest “beli baju ukur badan sendiri”
True about the lack of ADAS. However, how frequently do you use it? If people pay full attention on the road, I believe ADAS wouldn’t be required at all (except ACC, a God-send).
I am on another page for the used car debate, why buy a brand new City/Vios/Almera when a 2-5 year old ones are out in the market. Budget shouldn’t be the constant here, the purpose should.
Adas is same as life insurance. You want to buy it but only ever want it to function once or twice. Same as seat belt, same as airbags.
as a 2010 BMW E90 owner, the secret to keep your BMW in good condition is two things: a) fix any issues that you see fast no matter how small and b) find a decent (not cheap), honest and reliable mechanic.
most of the bad rep of BMW vs Toyota is that people tend not the maintain the BMW after X number of years while the Toyota is basically engineered around neglect.
the good news is there’s a lot of specialist BMW, Mercedes (and some Audi) workshop in major cities and most of the owners are ex-tech so they know what they are doing. just need to find a reliable one (good thing now we got facebook / twitter / google to check).
good luck !!
Generally, all car behaves the same when it is newly bought and within warranty. We only feel the difference when:-
1. Changing wear and tear parts e.g. Tyre, brake pad, spark plug, etc.
2. Periodic maintenance. Some come with free service.
3. Spare parts replacement e.g. absorber, Air-cond, sensors.
The issue is, what are we buying?
1. Reliability of the car as daily car?
2. Branding? Who doesn’t want German marque?
3. Technology, safety and innovation? Everything is come at cost
4. For weekend car, Family car, travelling?
Most of the Japanese car do manufactured their parts in Thailand, Indonesia, Vietnam and Malaysia. Plenty of OEM such as DENSO, KYB, APM, etc. at lower cost. As Japanese car are widely used in Asia, 2nd hand spare parts are plenty. Therefore, all the replacement part is cheaper, less complicated and proven old technology reliability.
While, european car spares are mostly manufactured in europe country such as Austria, Poland, Czech Replublic, Germany, etc. Their labour cost and operation cost are way higher which lead to a high spare part cost. Not to mention our Currency conversion rate. Even a CKD Mercedes do carry a lot of imported parts. We just assemble it.
Next is the skill set of the mechanic. Driving a Mercedes in Germany is like driving a Toyota in Malaysia. All their 3rd party mechanic will be able to handle it. Basic Service for a 2017 Mercedes CLS 220D in England only cost 100pound at 3rd party service. Which is about the same in Malaysia 3rd party workshop for a 7L oil change and filter.
Market perception on continental car in Malaysia are mostly “hear-say”. Reason is majority owner are started with Japanese car before upgrading to a luxury brand and most luxury brand is European car manufacturer. Therefore, the way they drive, operate, maintenance is different, hence the mentality and behaviour of the owner to properly maintain the car also will be different. They won’t use until it breaks, every parts have it lifespan for replacement to reduce the chances of failure.
Still it is expensive but not crazily expensive. Certain model is expensive to repair due design complication such as Air suspension, hybrid, sensors etc. Any buyer regardless of Japanese or continental car will have to do research which is the common model in Malaysia and this lead to spare parts readily available when time to repair.
My advice is go according to budget to purchase, to maintain and to absorb the depreciation value over time. I completely agree with the writer, “no right or wrong”.
When you are in Luxury Segment, Lexus are equally expensive to maintain. The only difference is they are part sharing with Toyota
Those whom condemning that buying used cars are prone to repairs and services. Not to forget that while those repairs are really subjective up to individuals while those buying new cars definitely bounded for high insurance and loan installments, regardless they were driven frequently or weekend. And yeah situation like Proton cars for an example,1st 3 years warranty for the whole while last 2 years only for the engine. I’d rather to buy a 5 year old car on cash term and have all core components replace at my own afford compare to expensive service center range.By the way, the insurance is also way cheaper too and no monthly installment.
I’ve been buying used European cars for the past 20 yrs and I tend to keep them for a long time. It is worthwhile buying used AND keeping it for a long time. Longest I’ve had is a XC90, now 13 years old, owned it for 8 years now and still running good. Took out loan for 5 yrs. I keep track of all my spending – maintenance repairs even inc accessories installation. If I factor in my loan, to date averaging out, cost of ownership RM660/month inclusive everything to keep the car running good. Brand new XC90 at the time was close to 350k. This cost a bit higher compared to my other used car as this is a SUV. I haven’t made the calculations but I’m pretty sure if u buy brand new and keep it for 8 yrs be it with 9 yrs loan, you’ll be spending much more a month