Buying a New Car in Malaysia

Information on the paperwork and processes involved when buying a new car in Malaysia...

There are many types of cars available in Malaysia, which include imported, locally assembled and locally manufactured models. Taxes on fully imported cars are very high. They are least likely to have spare parts and service centres readily available, unless the car is a popular make. Luxury cars such as Mercedes Benz and BMWs are locally assembled.

There is a range of car dealerships, for example, sole agents, mixed car dealers, and specialist car dealers. Sole car distributors are located on most major shopping streets in cities. The easiest way to find a car distributor is either via the Internet or by calling 103 (local phone directory) and asking for the contact number of the nearest distributor. The down payment for a new car is usually ten percent of the car's cost.

A valid driving licence is essential when buying a new car in Malaysia. All new cars are right-hand drive.

The following documents are needed:

  • Passport
  • Work permit (if taking out a loan)
  • Driving licence
  • Payslips from the last three months
  • Letter from employer
  • Employees Provident Fund (EPF) document which is available from the EPF office and is known as a KWSP statement or Penyata KWSP
  • Bank statements from the last three months

A driver under the age of 21 also needs a guarantor, for example, an employer or a Malaysian citizen. In this case the following are also required:

  • Copy of the guarantor's identity card
  • Guarantor's driving licence
  • Guarantor's bank statements from the last three months
  • Guarantor's most recent payslip

The car seller needs these documents to carry out the following:

  • Apply for road tax
  • Register the car with the Road Transport Department
  • Apply for car insurance
  • Apply for a loan for the buyer, if required

The seller manages all the paperwork, including preparing the car for collection. It usually takes a week to process the paperwork, but delivery of the car is subject to availability.

Car Registration Card

Whenever a vehicle is bought in Malaysia, the buyer receives a car registration card. This is a blue card which gives the name and details of the owner and the car. Road tax renewal is registered on this card as well.

If a car is bought with a loan, this car registration card is kept by the finance company until the loan is settled by the buyer. Road tax renewal is done by the finance company provided the buyer pays for the insurance and the cost of the road tax, plus a small fee for the finance company to process the document. A new road tax disc is then sent to the buyer.