Buying a car is a big financial decision, especially in 2025.

With the rising costs, every RM counts!

So, would you prefer a brand-new model with the latest technology and a full warranty? Or a well-maintained used car?

The answer depends on your budget, needs, and long-term plans.

Alright, let’s discuss the real costs of buying a new car vs a used one in 2025. 

By the end, you’ll know exactly which option is best for your wallet!

1. Upfront Costs

When comparing new and used cars, the most noticeable difference is the upfront cost. 

New cars come with a premium price tag and immediate depreciation. 

Whereas, used cars offer better value as they depreciate more slowly, require smaller down payments (as low as 10%), and have shorter loan terms.

This can save thousands in interest payments compared to new car financing.

Example: 

A brand-new Perodua Axia starts around RM40,000, and cars like the Toyota Vios can easily exceed RM90,000.

On the other hand, a 3-5 year old Perodua Myvi or Proton Saga can be purchased for under RM30,000. It’s like half the price of a new model. 

2. Long-Term Ownership Costs

New cars offer lower maintenance costs and typically cover repairs for up to five years. 

Plus, a better fuel efficiency due to newer engine technology and comes equipped with the latest safety features. 

However, these benefits come with higher fixed costs, including more expensive insurance premiums and mandatory servicing at authorized centers, which can be costly.

Used cars cost less to insure and can be serviced at independent workshops as they may need more frequent repairs. 

Example: 

Choosing reliable used models like the Myvi or Vios with readily available parts keeps maintenance affordable and allows you to save RM5,000-10,000 over five years compared to new car ownership costs.

3. Resale Value

One of the biggest drawbacks of buying new is the rapid depreciation. 

A new car can lose 40-50% of its value within five years, which makes it a poor investment if you plan to sell or trade it in later.

Used cars, however, depreciate at a much slower rate. A five-year-old car purchased today might lose only 20-30% of its value over the next five years, compared to the 50% loss seen with new vehicles

Also, there’s a stronger demand for affordable used cars, making them easier to sell when the time comes. If resale value is a priority, used cars are the clear winner. 

Example:

A new Perodua Myvi priced at RM50,000 could be worth only RM25,000 after five years, while a used Myvi bought for RM25,000 might still sell for RM18,000 in the same timeframe.

4. Fuel Efficiency

New cars usually have better fuel economy as they have advanced engine technology but the savings might not justify their higher price. 

Used hybrids (like a 2018 Honda City Hybrid) can deliver near-new efficiency at half the cost. Plus, buying used extends a car’s lifecycle, reducing environmental waste. It’s a win for both your wallet and the planet.

Example:

A 2025 Proton Saga (new) may offer 5.2L/100km whereas a 2020 model gives 5.8L/100km. It has a minor difference but can save RM300-RM500 yearly.

5. Financing & Loan Approval

New cars usually qualify for lower interest rates (2.5-3.5%) where as used cars have 3.5-5% but loans are larger and longer (up to 9 years), costing more overall. 

Example:

New Vios (RM90,000) - 7-year loan at 3% = RM1,200/month (Total: RM100,800)

Used Vios (RM35,000) - 5-year loan at 4% = RM650/month (Total: RM39,000)

Used cars also have easier approval for buyers with average credit, as banks deem them lower risk.

Conclusion

In 2025, buying a used car is clearly the smarter financial choice for most Malaysians. 

You can save thousands upfront, avoid rapid depreciation, and enjoy lower long-term costs.

If you are planning to purchase a used car, consider CarMine.

Every CarMine vehicle undergoes rigorous 175-point inspections and comes with warranty protection, ensuring dependable performance and safety.

Whether you prioritize savings or reliability, CarMine makes used car buying safe and simple.

Visit CarMine today and drive home your perfect car!