Vehicles in need of engine replacement can be traded in, but specific conditions and procedures should be noted. According to current regulations, replacing an engine requires applying for a change of registration with the vehicle administration office to ensure the procedures are legal and compliant. When trading in, the vehicle's condition is a key factor affecting its valuation; engine failure may reduce the residual value of the old vehicle, but some dealers or official trade-in programs still accept such vehicles, especially since the current government's trade-in subsidy policy (up to 8,000 ringgit) is more inclined to encourage the phase-out of old vehicles. It is best to first consult a professional appraiser or authorised dealer to understand the trade-in policy and residual value evaluation standards for specific models, and confirm whether the subsidy conditions are met. In addition, retaining the original license plate requires meeting conditions such as having used it for at least one year, which is not directly related to the engine status.
