Nowadays there aren't many people looking for manuals thus choices are mostly limited to Proton, Perodua and Nissan for passenger cars.

2008 Proton Waja CPS - if you're not too picky about the brand then this is a decent one by proton. the good thing about it is that is uses the body of the tried and true Waja, bigger and more spacious than a Persona although at times it might look ugly but I think this last facelift for the Waja before they phase it out is quite tastefully done. If anything happens you know that you have a ton of Waja parts you can fit into your car cheaply so parts isn't an issue for the body....so is too for the engine....as it uses the CPS engine which is also used on the Persona and Neo thus parts won't be an issue for this car. You'd probably choose this car mainly because of the cost of running and maintaining the car. Although it uses a CPS engine and with Lotus R&H it isn't going to transform you into Vettel when you drive, its not underpowered but don't expect too much.

2007 Nissan Sentra - in a nutshell it is about the same as the Waja, an older retired model but with a tried and true parts base that will last quite sometime so you never need to worry about not having parts as it was very popular back then -- so the key here is light on your pocket in terms of running cost and maintenance. The brand name and perceive better build quality from a Nissan is one plus point but I do feel the Waja is more spacious and usually CPS models all come with leather seats.

2008 Nissan Latio - another cheap to own and maintain car but this one I consider to be more inline with current design goals for cars such as beige interior for more spacious feel, larger interior but not so streamline exterior (guppy fish body), updated safety equipment, etc.

All three above are about equal but the Waja is probably the cheapest to run and maintain (still have a huge base and also many car clubs) will be good for at least 15 years before it starts to get rare on the roads, the sentra although looks wise is quite nice and streamline I feel has a poor interior and FC for the automatic was bad but might be better on the manual I dunno never tried it.......I think a good pick would be the Latio it is still quite modern and not very old (although the Waja is also a 2008 model but it was base of a 90s design like the Sentra).
The usual suspects would be Toyota Vios, Honda City, Nissan Sentra/Latio those would be the safe bets, get the highest spec and youngest age car that fits within your budget you should be alright.

If you looking for something more exotic I got 3 choices for your:

2004 SY Chairman - Looks like yesteryear's Merc right? Well it is! This luxo-barge can be yours for a very low price because this Korean brand although uses Merc technology is not well received so it depreciated like a rock and makes it available for any average wage earner to enjoy a Mercedes. Bad points is that it uses a 2800cc engine so roadtax might bite you once a year but it is a bullet proof engine design by Merc, the gearbox paired to it could have been better although it is reliable but smoothness and power delivery is abit lacking. For cars in this price range you won't find many with ESC, ABS, EBD, Auto wiper, etc. It is a good package for the price and Merc parts of this generation are very cheap so cost of maintenance is quite low (but don't expect it to be cheap like a Kancil, ok?).

2006 Hyundai Sonata - another under appreciated brand and car, this was when Hyundai was still trying to emulate Honda (doesn't the design reminds of you an Accord?) the cars didn't look as fantastic as they do now and also their engine's weren't the best in terms of performance but since then until now Hyundai cars are packed with value -- GPS, ABS, EBD, ESC, etc are all present in this Accord copycat if you have another 15k you can dream of a 2006 Accord but within 30k this is your best bet.

Lastly, a friend of mine is about to finish his tenure here so is letting go of his Skoda Octavia 1.6 fully restored and asking for only 20k (pm me directly for this offer if you're interested I'll hook you up) while the ones you can find online are also around this price but you need to put some effort to fix things, this one is all done up nicely and is in white color.
I think your parents concern are warranted. Toyota, Honda, Proton and Perodua are brands people usually buy because of their service network availability everywhere it takes away the responsibility and worry of owners of the car in case anything goes wrong is just a call and tow away. Owners just need to follow the service manual schedule maintenance and the car should be (major) trouble free for at least 5 years.

Either up the budget abit for the low spec Toyota Altis or Nissan Sylphy, or since your parents are buying just make do with what they offer you. Personally, I think the top spec Honda City is better value than the Toyota Vios but if your parents paying let them decide to make them happy but make sure they put the car under your name, makes it easier when you wanna sell it later on for your dream car 
Sylphy is quite cost effective and a good car but if you're worried about maintenance cost then choose a Latio instead as Sylphy being a 2000cc car (although gives you better performance) would require abit more $$ for maintenance as the minimum is semi-syn engine oil which puts your normal 5000km service at minimum RM200 at outside workshop with the cheapest parts and lubricants.

You might want to consider Vios as well. Although it is not the best value car but if running cost is very important then this car would be it. It feels very nippy driving around and gives back good FC. It is also very flexible with maintenance if lets say you reach 5000km but no money to go service yet it can wait another 1000-2000km before you go service.....deswai it is called GODCAR 
No doubt newer Proton cars are quite exciting with good looks and value for money specs.

My concern is that Iriz is very new with all new engine and gearbox technology too, it doesn't have a parts history so you don't have a track record of how reliable or performance it can give you. Secondly, no cheap spare parts at the moment since it is a new model -- everything direct from proton. So you're buying into untested technology and if things don't go right the car might have terrible RV if this model doesn't become successful (so far signs are good that it will be successful) it might become another Tiara.

So if the risks above are okay with you then go for the Iriz and be a pioneer 

If not then up your budget abit and get a Nissan Almera/Toyota Vios/Honda City.....reliable with good RV.

I'm planning to buy a USED car.
1. What's the pros and cons buying directly from the owner versus buying from a dealer?
2. What is the documentation required for claiming income tax? I'm thinking that if buying from owner directly, owner also would not issue invoice to me.

Maybe I can just afford either Perodua or Proton.. But Nissan have good FC? I suppose price will be more expensive than P1 P2.. hehehe

Anyway, how do u compare Saga BLM/FLX to Myvi? In terms of maintenance and FC?
I have done some research, ppl saying saga nice to drive at highway compared to Myvi.
But Myvi service is cheaper.
FC is quite similar

is that true?

looking for a 2.0 engine suv which is think qualifies as full size? those 1.5 ones are underpowered

2008 Suzuki Grand Vitara - i find this suv quite well appointed in general in terms of its equipment level and value, it is also quite handsome looking eventhough it isn't brand new, the biggest drawback of this model is the fuel consumption.

2009 Nissan X-Trail - although it looks ugly the X-Trail is probably one of the better choices of used SUV's under 60k, firstly one of the good features is that with only a push of the button and no need for complete stop you can switch from 2x4 to 4x4 drive. Secondly, this model has been sold for a very long time so maintenance and parts are very affordable for an SUV. The only sticking point is that it looks tremendously ugly.

2008 Nissan Dualis - think of the X-Trail and Dualis as twin sisters, sharing almost everything but one is pretty and the other isn't. The Dualis is a JDM car so it is available here as a grey import only, except for body panels the rest of the car is identical to the X-Trail so you can have a funky murano looking mid-size suv with cheap maintenance.

Both cars more akin to each other as both are 2000cc engine with CVT gearbox, both under valued so of course RV isn't fantastic but then since you're going to be 2nd owner, so selling it on to the 3rd owner usually RV doesn't matter as by the time you complete the loan the car would be near 10 years old then it ain't going to be worth much if you're lucky it would still be around 20-30k, not so lucky anywhere between 5k-20k.

Either one would be fine.

But you're wondering what is the difference between the latest Sylphy and the one you're about to buy? Well, nothing much except for aesthetics the hardware is largely the same so that means parts compatibility with the previous model which is good for lower maintenance and part cost in the future, which is also true for the inspira.

Fuel consumption they're about equal on paper, nobody ever complains about either car being a fuel guzzler, but of course you might feel abit more boyracer in a inspira (especially with that evo bodykit) which would make your blood rush and drive it with a heavy foot.

That brings me to the last part, the looks.

Sylphy is more understated and more biased towards cheaper maintenance and comfort.

Inspira is slightly brash looking, although it doesn't have a sports suspension I'm told the "handling by lotus" is quite an improvement from stock Lancer.

If you're looking for C-segment cars within your price range above year 2011 these two cars would be it.

Don't waste your time with VW Polo Sedan, Mazda3, and Kia Forte as they're all equipped with only a 1600cc engine, although the 2000cc lump in the sylphy and inspira isn't as fantastic as the civic fd2, it is alot quicker and better than a 1600cc lump, trust me.