Frequently asked questions about cars
If you plan to drive in Kuala Lumpur, understanding the local arrangements for buying and owning a car can help you prepare.
This article answers common questions about motoring in Malaysia and explains our support for buying a new car.
What are the pros and cons of Grab?
The biggest benefit is avoiding car ownership costs.
Vehicles have become cleaner in recent years, and it is less common to notice an unpleasant smell when getting in.
Safety features now include real-time location sharing and the option to record in-car conversations.
One drawback is that it can be difficult to book a ride on rainy days.
Fares can also rise sharply during busy periods.
Disputes with drivers can still occur.
Frequent users may find these issues frustrating.
Should I rent or buy a car?
Many people decide by comparing the expected resale value with rental costs.
As a rough guide, resale value falls to around 50% in the third year, then drops by about 10% each year.
Renting is usually cheaper for a one-year stay, while buying tends to result in lower total spending for stays of two years or more.
Do you recommend a new or used car?
We strongly recommend a new car.
A new car avoids uncertainties about previous maintenance, usage and ownership transfers, making it considerably less stressful to own.
Another benefit is that its resale value a few years later is more predictable.
Popular models such as the Toyota Alphard and Vellfire are not produced locally and are imported from Japan. These are known as reconditioned, or “recond”, cars and are bought through recond dealers rather than Toyota Malaysia. KL Fudousan can also introduce recond car dealers.
The asking price was much lower than a dealer’s. I assumed it was cheaper because there was no middleman’s fee and happily bought it.
I inspected the car and test-drove it, but several problems only became apparent after using it for a while. There were no service records either.
Soon after purchase, the engine area started rattling. I had it repaired and parts replaced, but the same noise returned three months later and another repair was needed.
Other problems I had missed at purchase kept appearing, and repair bills mounted.
Before six months had passed, I decided to sell. A dealer checked the registration number and discovered an accident history. Many dealers refused to buy it, and I still have not found a buyer.
Buying a used car privately carries considerable risk, so I cannot recommend it.
Some dealers advertise returns within five days of purchase. I recommend checking the accident history using the registration number before and after buying. Also, always check that service records exist and that maintenance has been carried out regularly—I believe this is essential.
And if you plan to keep the car long term, I strongly recommend buying new.
Which models are popular, and what do they cost?
A clear favourite as a second car
Perodua Myvi
From RM45,700
• Malaysia’s best-selling car for more than five consecutive years.
• Its popularity comes from easy handling, good performance and value for money.
• Choose a 1,300 cc or 1,500 cc engine to suit your needs.
• Easy to drive on Malaysia’s narrow roads and in tight parking spaces.
Growing in popularity: Perodua SUVs for families
Perodua Ativa (compact SUV)
From RM61,500
*The same model as the Daihatsu Rocky.
Perodua Aruz (SUV)
From RM68,526
• Seven seats provide comfortable room for the family.
• Purchase, inspection and repair costs are lower than for Japanese cars.
• Like the Myvi, it benefits from the local manufacturer’s joint venture with Daihatsu, with good quality and strong trust among Malaysian drivers.
Toyota Vios From RM76,000
Honda Civic From RM109,000
What is the new-car buying process, and what should I check?
1. Choose a car at the dealership.
2. Provide a copy of your passport photo page and complete the required documents.
3. Make payment or apply for a loan.
The amount payable generally includes vehicle tax and road tax.
A no-claims certificate in English from your Japanese insurer can qualify you for an insurance discount.
The booking deposit is RM100. Financing of up to 70% is available, although most clients pay in full.
4. Take delivery of the car.
Buying a car in Malaysia is relatively easy.
Proof of a parking space or even a driving licence is not required for purchase; the dealer usually also arranges insurance and road tax as part of the purchase process.
In addition, manufacturers set new-car prices, so prices generally do not differ between dealers.
However, choosing a trustworthy dealer is essential.
In recent years, there have been cases of dealers disappearing with payments or closing unexpectedly during the purchase process.
How much are insurance and road tax?
Costs vary by model and vehicle.
Use the following websites to estimate insurance and road-tax costs.
Car insurance Insurance calculator
Road tax Road tax calculator
What should I do if I have a traffic accident?
The general process is:
1. Report to the traffic police and make a police report within 24 hours.
2. If repairs are needed, take the car to a workshop appointed by your insurer.
Local procedures may differ from those you are used to, so the following points deserve particular attention.
1. Police and insurance representatives do not normally attend the scene.
Go to the traffic police station and make a report within 24 hours of the accident.
Use the traffic police station responsible for the accident location, rather than simply the nearest police station.
2. Minor incidents are often settled at the scene without an insurance claim.
After a minor rear-end collision, it is common for the parties to agree on a repair payment of a few hundred ringgit and leave separately.
If you are less confident in English, save emergency contacts for a spouse or partner, colleague or Malaysian acquaintance who can help.
3. If the car cannot be driven, call your insurer’s towing service.
Tow trucks can arrive remarkably quickly after an accident, but many are unsolicited operators.
Do not use them: excessive repair bills are often charged afterwards.
Contact your own insurer and use the tow truck it dispatches.
For further precautions, see:
Embassy of Japan in Malaysia: road conditions and accident guidance
I was confident in both driving and English, but then another vehicle hit me in Malaysia for the first time.
A tow truck arrived within minutes and claimed to have been sent by my insurer. I handed over the car, only to find it could not be located the next day.
I had heard of this happening, but in the panic I could not think clearly. I regretted not keeping a guide in the car.
The car finally returned a few days later, along with an enormous repair bill.
How can I sell my car?
1. Use a vehicle marketplace.
www.carlist.my, www.mudah.my and similar sites.
Benefit: no commission, or very low fees.
Drawback: you must arrange the ownership transfer yourself.
2. Post on social media.
Facebook groups such as “KL Expats” and “Expats in/around Mont Kiara” are mainly used by expatriates and frequently feature items for sale.
Benefit: no commission, or very low fees.
Drawback: you must arrange the ownership transfer yourself.
3. Sell to a dealer or buying service.
https://www.carsome.my/
Alternatively, use a Japanese-affiliated dealer or a used-car dealer you already know.
Benefit: most paperwork can be handled for you, keeping your own involvement to a minimum.
Drawback: commission or service fees apply.
How do people pay, and what are the loan requirements?
Expatriates and people planning a long-term move commonly use:
• Cash
• Bank transfer
• Credit card: check the payment limit in advance.
Foreigners can also apply for a loan, but there are a few conditions.
• Proof of regular income in Malaysia, Japan or another country
• A Malaysian guarantor
Applicants meeting these conditions may receive financing of up to 70%.
For MM2H holders, these conditions are relaxed, making the loan application easier.
Support for buying a new car
We introduce a well-known automotive company that operates as an authorised dealer for several brands in Malaysia.
Some of the available brands are listed below.
A Toyota showroom will naturally recommend Toyota cars. The dealer we introduce instead considers your requirements before recommending the best choice across its brands.
This can only be done by a company that deals with multiple manufacturers.
The dealer can also advise on insurance, ongoing maintenance and eventual resale, offering one point of contact for your car-related needs.
Our substantial referral history also means we are treated as a valued customer, with more flexibility in the service offered.
Some of the brands available
• Perodua
• Proton
• Toyota
• Honda
• BMW
• Porsche
• Jaguar
• Land Rover
• Volvo
• Lexus
• Recond cars: imported used vehicles such as the Alphard and Vellfire
The dealer has also sold Lamborghinis and other rare vehicles.
Clients who use our property brokerage service: RM2,000
Clients who do not use our property brokerage service: RM3,000
*Introductions are free for clients who do not need our support service.
Please contact us for details.
The price therefore does not vary between showrooms.
That makes choosing a reliable dealer and representative particularly important.
The dealers we introduce do not add a mark-up to the vehicle price, so please feel free to contact us.
What do you think?
We respond flexibly to your requirements.
Please contact us with any questions.
