{"id":21889,"date":"2023-08-09T11:00:28","date_gmt":"2023-08-09T03:00:28","guid":{"rendered":"https:\/\/www.carsome.my\/news\/?p=21889"},"modified":"2023-10-30T15:57:47","modified_gmt":"2023-10-30T07:57:47","slug":"cbu-vs-ckd","status":"publish","type":"post","link":"https:\/\/www.carsome.my\/news\/item\/cbu-vs-ckd","title":{"rendered":"CBU vs CKD: Is One Better than the Other"},"content":{"rendered":"

Purchasing a new car is a big deal, especially since it involves a big chunk of change and can tie us down with quite a long loan tenure. On top of that, evaluating various factors to find the right car can be overwhelming due to the different brands, types, and specifications of cars available to us.<\/span><\/p>\n

One of the main decisions you will have to make that not many think about is the vehicle assembly information, namely whether it\u2019s a Completely Built Up (CBU) or Completely Knocked Down (CKD) car. So, what is the meaning of a CKD and CBU car, and should you always choose a CKD car in Malaysia? Read on to better understand <\/span>CBU versus CKD<\/span><\/a> before making your final decision.\u00a0<\/span><\/p>\n

What Does CBU Mean?<\/b><\/h2>\n

CBU cars are made in foreign countries and are imported into Malaysia as fully operating vehicles. Such imported cars usually come with heavy excise duties, which can range between 60 and 105 percent which essentially hike up the final price of the car. <\/span>Here are some trade agreements that Malaysia has made with other countries that affect the price of CBU cars in Malaysia.<\/span><\/p>\n

ASEAN AFTA and ATIGA<\/b><\/p>\n

Nevertheless, thanks to a pact called the ASEAN Free Trade Area (AFTA) and the ASEAN Trade in Goods Agreement (ATIGA) between ASEAN countries, not all CBU cars are sold at a high price point.\u00a0<\/span><\/p>\n

With this pact, cars made in ASEAN countries do not come with import duties. For example, certain Honda and Toyota cars that are made in Thailand are not subject to the same import duties as the cars that are made in Germany.<\/span><\/p>\n

\"Imported<\/p>\n

Most Favoured Nation (MFN)<\/b><\/p>\n

For cars that are imported into Malaysia from the WTO (World Trade Organization) Member Countries (like Austria, Germany, New Zealand, United States, and more), an<\/span> MFN tax<\/span><\/a> (Most-Favored Nation tax) \u2013 a non-discriminatory tax of 30 percent is charged on imports. This MFN tax is applied to all WTO Member Countries based on the listing contained in the Customs Duties Order(s).<\/span><\/p>\n

Read More: <\/b>A Guide to Car Loans & Interest Rates in Malaysia<\/span><\/a><\/p>\n

Import Duty and Local Taxes on CBU Passenger Cars<\/b><\/h4>\n\n\n\n\n\n\n\n\n
<\/td>\nImport Duty<\/span><\/td>\nLocal Taxes<\/span><\/td>\n<\/tr>\n
Engine Capacity (CC)<\/span><\/td>\nMost Favoured Nation (MFN)<\/span><\/td>\nASEAN ATIGA<\/span><\/td>\nExcise Duties<\/span><\/td>\nSales Tax<\/span><\/td>\n<\/tr>\n
Below 1,800<\/span><\/td>\n30%<\/span><\/td>\n0%<\/span><\/td>\n75%<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
1,800 \u2013 1,999<\/span><\/td>\n30%<\/span><\/td>\n0%<\/span><\/td>\n80%<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
2,000 \u2013 2,499<\/span><\/td>\n30%<\/span><\/td>\n0%<\/span><\/td>\n90%<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
Above 2,500<\/span><\/td>\n30%<\/span><\/td>\n0%<\/span><\/td>\n105%<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In summary, these are the main things to note about CBU cars:<\/span><\/p>\n