Used Cars Will Still Be the Public's Choice in 2025

KatadataOTO – Entering 2025, car wholesale figures are still lower compared to last year's achievements in the same period. Several factors play a role, such as the increase in VAT (Value Added Tax).

Several LCGC (low cost green car) models, which were previously offered competitively, are now nearing the Rp 200 million mark.

Meanwhile, popular cars like three-row LMPVs or LSUVs are now priced at Rp 300 million and above. However, the public's purchasing power is claimed to be still below Rp 300 million.

Seeing this, automotive observers believe that used cars will still be the choice for many people throughout 2025.

Photo : KatadataOTO

“The public's purchasing power cannot reach new car prices. Besides that, buying a used car is now very easy and transparent,” said Riyanto, an automotive observer from LPEM (Institute for Economic and Social Research) to KatadataOTO, Wednesday (05/03).

Looking at a survey he conducted in 2023, 63 percent of four-wheeled vehicle buyers on the island of Java chose used cars because of their lower prices.

Moreover, in the MPV (Multi-Purpose Vehicle) segment, the depreciation is quite significant and can reach 50 percent. This makes it an attractive option for consumers looking for a three-row car in the Rp 100 million to Rp 200 million range.

“The market (for used cars) is relatively symmetric; sometimes even the car's defects are disclosed by the seller. I think this year, many (consumers) will still buy used cars,” he asserted.

It should be noted that people are considered to have the desire to buy a new car if they have sufficient capital. For context, the used car market is said to be dominated by consumers with monthly expenditures below Rp 5 million.

Many economic challenges faced by the public have led to a reluctance to buy cars. There is a fear of layoffs (termination of employment), so potential consumers are reducing their purchases.

For those who need a car, they look for alternative specifications and similar models in the used car market.

Photo : OLX

For comparison, the price of a three-row car like the Xpander is offered starting from Rp 270 million for the lowest manual type, while the highest Ultimate CVT variant is at Rp 331.9 million.

Meanwhile, in the used car market, sellers offer a 2022 Xpander Ultimate CVT with a price tag starting from Rp 235 million to Rp 249 million.

Then, a compact car like the Honda Brio Satya is currently sold for Rp 170.4 million to Rp 202.5 million. Meanwhile, the price for its used version is around Rp 170 million for a 2023 E CVT type, or around Rp 90 million if you are interested in an older version.