Considering buying a used (or pre-loved) vehicle? What should you be looking out for? What is the process like?


Why a Used Car

  • Pro: Saves on major depreciation costs especially higher in the earlier few years of a car
  • Pro: Best value for your dollar (or Ringgit rather)
  • Pro: Lower cost allowing you to buy for cash or at a lower loan cost & duration
  • Con: Unsure of condition of car or if you’re buying a lemon
  • Con: May no longer be under warranty & free servicing
  • Con: No new car smell & feeling ūüėČ


Research for Buying

  • Decide on your budget
  • Look at models & makes you are interested in within your price range
  • Read up & ask auto experts on pros, cons & known issues with the car model(s) you are interested in
  • Check out car listings & ask around friends for any contacts selling their cars (directly saving both buyer & seller 3rd party dealer fees)
  • Look at at least 3 cars before making your decision
  • Know what is the maximum price you are willing to pay before you begin negotiating with the¬†seller


Questions to Ask (Best before even meeting up)

  • Confirm model & year of manufacture
  • Confirm mileage
  • Why is the car being sold?
  • Smoker? (Unless you’re a smoker planning to smoke in your own vehicle too)
  • Previous driver(s)? (Not a deal breaker but better if female driver)
  • Tip: Buying directly from the car owner may¬†save you significant savings especially if it’s an urgent seller & you’re buying cash


Physical Check (Details to Scrutinize as Buyer + Bring your auto-head friend along too)

  • Mileage: Is the mileage on average or below for the vehicle? (20,000 km per year; 16-18,000 km per year on average is pretty good)
  • Interior Condition: Power windows? Smell? Dashboard & plastics? Cushions? Floor?
  • Exterior Condition: Warped metal/paintwork? Scratches & dents? Lights? Window cracks?¬†Rubber lining? Cost to knock & respray?
  • Boot Condition: Damage? Oil spills in boot? Spare tire?
  • Hood Condition: 1st check on own to see condition before mechanic to check
  • Mechanic Check-up: Engine, brakes, tires, etc (at your own trusted mechanic)
  • Modifications: Modifications = bad


Documents to Check

  • Service Record History: Regular periodic servicing on time?
  • Grant: Seller is the current owner?
  • Cover Note:¬†Insurance NCD % &¬†no prior claims?
  • No previous major accidents record?



Sample Puspakom Borang B5

Purchase Process

Once you have decided that the car is the one for you, it’s time to get all the paperwork done.

  • Pay booking fee: RM500-RM1,000
    Sign Car Booking Fee
  • Apply for car loan from a few financial instituitions (if taking up car loan maximum 90% car value)
  • Puspakom check: B5 of buying cash + B7 if taking car loan
    Cost: RM30 per form
    If using runner: RM70-100
    Paid by: Seller
    Bring: Car Grant + Car
    Remove: Car Tint + Illegal Modifications
    Note: The form is only valid for 1 month from inspection date to car transfer ownership date!
  • Seller settle existing car loan (if applicable)
    If buyer payment into existing car loan, suggest pay to seller’s bank directly (instead of passing to buyer cash)
    Sign Car Purchase Full Payment (if car transfer not completed yet)
    Duration: Up to 1 week (faster if done at branch that car loan was taken from)
  • Buyer to purchase car insurance
    Insurance start date as same date transfer to be done
    Note: Contact Us for auto insurance services
  • Transfer car ownership at JPJ office
    Cost: RM100
    Paid by: Buyer
    Bring: Car Grant
    Fill JPJ form by both buyer & seller
    Note: Road Tax if not expired does not need to be changed. You can extend your insurance & possibly renew your road tax next for 6 months instead of a year to save costs.
  • Congratulations! You are now the new owner!


Useful Links


Do you have a good or bad experience buying a used car? Tips & suggestions to share?