Why are used PHEV vehicles so cheap right now in Malaysia?

Fact! Plug-in hybrids (PHEV) come with a host of problems. It is simple. Think about it. Here is a car (or SUV or crossover) with a petrol engine (probably a 4-cylinder) working with a battery-electric system to assist in heavy traffic conditions and also when added acceleration is needed.

So, you have a vehicle with a very complicated electrical system and also an electronic system to ensure both powertrains work seamlessly without the need for intervention by the driver.

Take for an example, a used 2017 Mercedes C-Class 350e (PHEV) was launched in late 2016 for RM 299,000, and today, some 4 years later a used unit in the online classifieds is just RM 149,000 negotiable.

This means a possible RM 140,000 final price. That’s more than 50 percent depreciation over 48 months which is about RM 3,300 loss every month for the first owner.

The C350e nearest rival is the BMW 330e which was also launched in August 2016, the same time as the C350e but at a more ‘interesting price of just RM 248,800. This lower price encouraged many buyers to ignore the petrol-powered BMW 320i and opt for this hybrid-powered 330e.

Today, some 4 years later, this car is being advertised in the online classifieds from RM 109,000 and we have heard of final negotiated prices hitting RM 96,000. This is an RM3,160 loss every month over 48 months.

Yes, luxury cars have high depreciation and it does not matter the brand or the model. The used PHEV buyer is unaware of the mounting issues and when the warranty is over in 1 to 2 years, they will have to pay hefty prices for replacement parts and repairs.

Again, the PHEV battery has a long warranty (6 to 8 years) but the electronics around it have no warranty, and repair prices are NOT cheap.

Meanwhile, in April 2021, there was new European legislation to phase out PHEV in favour of full-electric vehicles as there were still not that emissions are friendly.

So, be aware of a used plug-in hybrid European car. Stay away unless you know what you are getting yourself into.

What is a plug-in hybrid? A question still asked by some Malaysians who are a little confused. Here below is the explanation that seems simple enough.

A plug-in hybrid vehicle (PHEV) has both a combustion engine and an electric motor. Each one is capable of powering the vehicle on its own. Plug-in hybrids use regenerative braking as their energy source, but they can also be plugged in to recharge the battery.

While a mild hybrid car captures electric energy solely while it’s being driven, and thus can only supply a limited amount of power, a plug-in hybrid, PHEV (plug-in hybrid vehicle) is also capable of recharging its battery when it’s parked at a charging station.

 This significantly expands the electric range of a plug-in hybrid like the 2018 BMW 530e iPerformance, which can drive 28 miles only on electricity with a fully charged battery. Over the next few years, technological advances will significantly improve the range of electric motors, as well as that of all battery-powered cars.

Many PHEV owners can already manage most of their trips on electricity because daily commutes are generally less than 30 miles. It depends on how much you pay for electricity, but you will likely be saving a great deal. If the electric charge is depleted, then the combustion engine takes over, so you don’t have to worry about finding a charging station.

Hope the above information 'opens' the eyes of some Malaysians.

Also read: Electric car brands in Malaysia