Car depreciation in Malaysia is the gap between what you pay for a car and what someone will pay you for it later. Every car has it. European luxury cars generally lose value faster than Japanese and local ones, and in 2026 new-car price cuts and cheaper Chinese models pushed used prices down further. None of it shows up on a monthly statement, so it's easy to underestimate.
"Depreciation only matters when I sell"
It's a cost from the day you collect the car, whether you sell in three years or ten. You see it at the trade-in counter, when the offer for your car is set against the price of the next one. If you're comparing ways of having a car, put the expected loss in value next to the loan interest, the insurance and the servicing, because it can be one of the larger numbers. Our guide to the cost of owning a car in Malaysia lists the rest.
"An expensive car holds its value"
Price and resale don't move together. Continental cars, the BMWs, Mercedes-Benzes and Audis, generally resell worse in Malaysia than Japanese cars. The reasons are practical ones that a second owner weighs up: servicing costs more, many parts are imported, insurance premiums tend to be higher because repairs are dearer, and there are fewer buyers for a used luxury car than for a used Honda or Toyota.
The further up the price list you go, the smaller the pool of secondhand buyers. That's a reason to think carefully before buying a car you'd only use on weekends. Our guide to buying a used luxury car covers the other side: what a buyer gets when someone else has already taken the drop.
"Japanese cars are safe from it"
Safer, not safe. In 2026 the pressure moved to them. The Star reported in October 2026 that new-car price cuts and aggressively priced Chinese models were pushing down prices of newer used cars and used Japanese cars in particular, worst where a used car's price came close to a new Chinese one. Even popular models with strong demand weren't fully shielded. A price cut on a new model pulls down what the used ones fetch.
"EVs are worthless secondhand"
Nobody can say yet. In the same report, Carsome said used hybrid and EV values were relatively weak and uncertain compared with petrol cars, while Carro said hybrids had held firm and depreciated at rates similar to petrol cars. Battery health, warranty terms and how fast new models arrive all play into it. If you want to try an EV without taking that bet, our guide to EV subscription in Malaysia and our look at EV ownership costs set out the alternatives.
Who carries the loss
How you get your car decides who takes the depreciation.
| How you have the car | Who owns it | Who carries the loss in value | What you have at the end |
|---|---|---|---|
| Buy outright | You | You | A used car to keep or sell |
| Hire purchase | The bank until the last instalment, then you | You | A used car, once the loan is paid off |
| Grandpride Lease to Own | Passes to you at the end of the term | You, since you keep the car | The car, yours outright |
| Grandpride Subscription | Grandpride | Grandpride | Nothing to sell; you return or swap the car |
With a Grandpride subscription, Grandpride owns and registers the car and you pay one monthly price that includes insurance, road tax, routine maintenance and roadside assistance; you pay for fuel. It isn't a loan, there's no down payment, and when the contract ends you return the car or swap it. The resale risk stays with the owner. The longer the term, the lower the monthly price.
Lease to Own works the other way. You sign with a down payment, pay over 12 to 36 months, and the car becomes yours at the end of the term, so whatever it's worth then is your gain or loss CHECK: lawyer to confirm how the lease-to-own contract is structured, including when ownership passes. It's arranged in-house by Grandpride, with no bank loan, and the cars are under 70,000 km and inspected before they're certified.
Which way suits you
If you keep cars for many years and drive a lot, buying a model with a good resale record makes sense. If you change cars every two or three years, or you want a European car without its resale risk, a subscription moves that risk off your books. If you want to own the car in the end but can't or don't want to use a bank, lease to own is the option to look at. Our guide to subscription, lease and hire purchase compared goes through the numbers you should ask for on each.
