7 Things To Consider When Buying A Used Car In Malaysia

Let us now consider why purchasing second hand vehicles is better than purchasing new vehicles. In purchasing second hand vehicles, the 7 things to consider are:-

1) Smaller hire and purchase loan.

To secure second hand vehicles one requires only limited amount of finance. Compared to buying a new vehicle, which can sometimes be quite costly.

In buying second hand vehicle, the owner has to stump out a lower amount of money, or to take a lower amount of loan for the car.

2) Cheaper insurance cover.

Second hand vehicles only require third party coverage which is cheaper. Third party insurance cover for second hand vehicles are much cheaper when compared to first party ones

3) Slower value depreciation.

Second hand vehicles are said to suffer from lower depreciation costs as compared to new vehicles.

4) Higher maintenance required.

The necessity to change certain important parts of the vehicle such as clutch, timing chain or belt, and engine wear and tear. Such repairs can sometimes be rather costly affair.

5) Less efficient.

Second hand vehicles can sometimes be unable to provide efficient service. They tend to breakdown more often as compared to new vehicles. They are, infact less reliable.

An owner of a second hand vehicle, you will undoubtedly have to spend quite a sum of money on the upkeep of second hand vehicles.

6) Wear and tear issues.

Second hand vehicles are also said to undergo risks of corrosion. In such cases, its body work will have to undergo welding repairs from time to time to keep it in proper, working condition. A second hand car, will also have to repainted from time to time. All these, costs money to upkeep.

7) Higher fuel consumption.

Some second hand cars can sometimes be said to be unable to provide you good consumption. Consumption can at times be heavy due to the carburetor system having undergone much wear and tear.

This article has gone on to discuss the pros and cons of owning a new or a second hand vehicle. Ponder carefully over it. Finally, you should be able to make the correct decision of whether to own a new vehicle or a second hand one. The choice is yours to make eventually.

By | 2012-02-08T00:12:41+08:00 October 5th, 2011|Auto Insurance|4 Comments

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4 Comments

  1. Liew January 11, 2012 at 4:07 pm - Reply

    How is the selling procedure to a used car dealer be done correctly? Would there be additional forms involved?

    I hv decided to sell off my car to a 2nd hand car dealer. My car was bought without any loans involved. Hence, i assume that my transfer of ownership to the 2nd hand car dealer will be easier? Please advise…

    • Cikgu Yap January 11, 2012 at 4:14 pm - Reply

      My son sold his car to a used car dealer recently. If there is no bank outstanding loan, the process is quite simple. When you’ve agreed on a selling price, the used car dealer will issue a cheque to you. In addition, there is also a Letter Of Sale which both you and the used car dealer has to sign. After that, you hand over your car registration card.

      The car registration ownership will not be changed immediately. In case you get a traffic summons note after the date you sold the car, you can use the Letter Of Sale as the supporting prove that you’ve already sold your car. The police will then transfer the summons to the used car dealer.

  2. Melvin June 12, 2012 at 10:46 am - Reply

    I’m trying to buy a car off a company directly. I now already have the loan approved and the car inspection done. My bank has also already settled all
    Outstanding loans with the seller’s bank. Now pending is the transfer of ownership which I was told may take longer since its a company car. My question is really when is the most appropriate time for the seller to pass me the car?? They are requesting the bank fully pays up the full sum before releasing the car. I feel that I’m getting the short end of the stick here since I have no visibility of the vehicle and not sure what is the condition of the car since I last saw it a month ago. Please help advise

    • Cikgu Yap June 13, 2012 at 11:48 pm - Reply

      It all depends upon the type of agreement you have made with the car agent. There is not much you can do now. It’s a little too late. Full payment, as you said has already been made.

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