An analysis of factors affecting automobiles resale value in Malaysia

Used car buyers often face challenges in understanding the factors that influence the value of cars. Identifying these key factors can be difficult, as many elements, such as brand, model, age, mileage, condition, and maintenance history, affect how much a used car is worth. Without understanding the factors that impact used car values, buyers may risk overpaying, especially for those unfamiliar with the used car market. This study examines the resale value of used cars in Malaysia, focusing on the Perodua brand, by analyzing how transmission types, car age, mileage, engine capacity, and body types affect resale value. Secondary data from theCarro website was utilized for this study, covering the period from July 2024 to October 2024. The dataset consisted of 156 observations, focusing only on Perodua cars. Multiple Linear Regression (MLR) was used to identify significant factors affecting the resale value of Perodua cars. All assumptions of Multiple Linear Regression (MLR) were met to ensure the validity of the analysis, which were linearity, normality, homoscedasticity, absence of outliers, multicollinearity and autocorrelation. The regression results concluded that transmission types, mileage (km), age of car (month), engine capacity, and body types were significant factors of the resale value. Recommendations for future studies include extending the data collection period, extracting data from multiple sources, and exploring additional factors.