WTF is the “Recon Market” in Malaysia
It goes by many names: Recon (short for Reconditioned), Grey Imports, Parallel Import, Import Cars, Unregistered Cars etc. They refer to the same thing- which is the import of used cars from Japan, UK, Australia, etc.
These cars slot neatly between the vast space between what we know as Pre-Owned Cars in Malaysia and the New Car market of cars distributed by official dealerships across Malaysia. They are used, yes, and they are also unregistered. This article will be primarily contextualized by the available luxury automobiles in the UK, it is where we get a majority of our highly sought after #ExceptionalExamples from, and in our opinion, it nets the buyer the most value for money. Let’s first start by comparing and contrasting the vehicle purchase and ownership experience between Malaysia and the UK.
THE UK
Relative to Malaysia, luxury cars are cheaper to buy in the UK, but the trade off is a high Cost of Ownership. This refers to all the expenses associated with ownership and usage of cars, think factors like parking, maintenance at a garage, replacement parts, skilled labour involved, upkeep- you get the picture. As a result, this climate encourages the frequent change of cars, rather than an extended period of time holding on to one particular vehicle. The associated costs of ownership climb exponentially as the vehicle ages, and nature takes its’ hold in the mechanical internals of a car, snowballing the effect gradually, but surely.
Malaysia
Pros
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In the context of luxury continental cars, they are much, much cheaper in comparison to buying new locally from an Authorized Dealership. Depending on the car of interest, savings can range anywhere from 10% to 30% simply by nature.
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Buyers are spoilt for choice in the recond market, as you won’t be limited to the offerings of local dealerships. Authorized dealerships often only have a select few models, trims and specifications available, done so in order to keep the price at an attractive point.
This is especially true for #DropTheTop- Cars & Coppee, where we have curated a range of #ExceptionalExamples consisting of convertibles across multiple brands, and have showcased them all under one roof.
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As the vehicles are technically unregistered, banks offer the same loan arrangements as new cars- lower interest, higher loan percentage or amount, and longer loan period.
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Readily available inventory. We usually insist that our clients have a viewing and test-drive of the car first before moving forward to the purchase. Most recond cars are physically in showrooms, and its’ a matter of scheduling a time to drop by and have a look for yourself. The other advantage is that you can arrange for a PPI (Pre-purchase Inspection) to be done, giving you a detailed look at the vehicle, identify any potential damages.
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Better value for money, especially if you factor in residual/resale value. It is a simple concept, the actual cost price of a car is calculated by deducting your purchase price with the resale price. When you buy a good car at a lower value, and eventually let go of that car at a strong resale price, the difference is the price you pay for over the course of ownership.
Sounds tempting, now what’s the catch?
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Potential Scams. The automotive scene in Malaysia is no stranger to deceit. The widespread rolling back of odometers is a well-documented scam in Malaysia. Importers often buy high mileage, extensively abused cars and tweak the odometers to show a lower value. Its’ a cheat that’s as old as the first person that got their hands on an instrument cluster. Taking it one step further, dishonest dealers even swap out good parts for worse ones, making a quick buck by selling it off as good quality spare parts, or swapping it onto another vehicle.
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Quality of dealership. Visiting an Authorized Dealer can be a thoroughly satisfying, and luxurious experience, visiting a run-off-the-mill grey import dealership is…well…much less than that. From a hospitality standpoint, they often lack the premium experience that good quality dealerships can deliver.
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After-Sales peace of mind. Another major disadvantage of shopping in the typical recond dealership is the lack of a proper warranty arrangement. However, this can be easily solved if the dealer chooses to provide free warranty arrangements form a third-party warranty coverage provider such as EZCare (which Abadi Motor Penang generally uses), and GMR.
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Cars available as CKD (Complete Knock Down) vehicles, a.k.a. locally-assembled cars make no sense. As they typically are already an excellent value buy.
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PHEVs enjoy a nice, thick tax-incentive, importing a PHEV does not net you nearly enough savings to warrant the absence of a proper Authorized Dealer’s hybrid system warranty.
Malaysia’s first Cars & Coffee concept store where we bring together an excellently curated selection of cars, and artisanal coffee & treats bought together under one roof.
At Abadi Motor Penang, we specialise in convertibles that start from RM200,000, that’s the price of a pre-owned BMW 3series. On the other end of the spectrum, we’ve sold manufacturer flagship convertibles such as the Porsche Carrera 911 (992) Cabriolet, and BMW 8-series convertible.
