Resale Value/ Depreciation for Japanese Cars

• 

  GnarlyKnuckles on 28/02/2015 - 21:20

  +2

  I'm not a car expert by any stretch, but I know a couple of things…

  It's not really possible to predict which of two kinda' similar things will have the better resale value (percentage-wise) 'in 5-10 years'! That's too far away, and numerous things could happen during that (long) time which could affect which will re-sell better. I'm guessing though, their resale value as a percentage of initial outlay would be pretty similar.

  Re the Euro cars Vs. Jap cars, I'd say the better resale on Jap cars is because they're generally sought after 2nd hand by more people than Euro cars. This, I'm guessing, probably has a lot to do with the difference in price to maintain a Jap car over a Euro car, particularly once it gets a few years old and some parts start needing to be replaced. Parts for Euro cars are a lot more expensive than parts for your standard Jap cars (particularly if you're talking about 'knock-off'/generic-issue parts).
  Also, the old Toyotas I had in my youth were pretty easy to "self service" and put new parts into, but I think maybe this is not the case for many Euro cars. This may function to improve the resale value of Jap cars; knowledgable tinkers/ handy-peeps can buy them and fix them up themselves more easily than they can Euro cars, maybe?

  • 

    THL on 28/02/2015 - 22:16

    Yeah I'm guessing all Japanese cars will probably have similar resale values. I've talked to a few secondhand car dealerships and they all said Toyota has the highest resale value compare to other brands like Mazda/Mitsubishi/Suzuki under the same conditions. Thanks for your insight :)

• 

  vikvance on 28/02/2015 - 22:02

  Also because more people own Japanese vehicles, which means parts are easier to find.

  • 

    THL on 28/02/2015 - 22:12

    So even though Toyota is moving their production line overseas, their parts will still be easy to find?

    • 

      GnarlyKnuckles on 28/02/2015 - 22:26

      Yeah. Even now, most peps would buy a new, 'generic brand' (i.e. non-Toyota) part for anything older than a couple of years (these parts are totally designed to fit the Toyota, just not made by them). Either made here, or shipped here at a very negligible cost. The fact that the factory making the actual cars won't be here anymore will not affect this in any way.

    • 

      pao2x on 28/02/2015 - 22:42

      They hardly manufacture the parts here now anyway. No reason for that to change when they leave.

    • 

      sheepy on 01/03/2015 - 07:37

      +1

      Camry and Aurion are the only locally manufactured models, so the condition for sourcing the parts for Corolla (MIJ) will not change.

• 

  blitz on 28/02/2015 - 22:05

  +29

  Does anyone know why is this the reason?

  Japanese cars keep going and going. They want what you want. If they break down, they feel ashamed. Your happiness is their one goal.

  American cars breathe through their mouths. They listen to Nickelback. You can tell if there's an American car nearby because you can hear it insulting the waitress or making fun of the guy with glasses.

  European cars think they're doing you a favour. They sigh when you get in. If you listen carefully, you can sometimes hear them laughing at your expense.

  That's why.

  • 

    THL on 01/03/2015 - 15:52

    Initially I was considering a Volkswagen Golf/Polo as well but then I did a little bit of research and found that it's not as reliable and they had a problem with their gearbox a few years ago. I think I should probably stay away from VW until I'm able to afford a high maintenance car.

    • 

      Serapis on 02/03/2015 - 21:27

      +1

      Would not recommend Volkswagen after reading Doug Demuro's columns:

      http://dougdemuro.kinja.com/here-s-why-volkswagen-s-strategy…

      Man I love this guy's work

• 

  CheapandUsed on 28/02/2015 - 22:53

  +4

  I've noticed that the Mazda3 holds its value stupidly well in the SP23/SP25 models.

  The first 3 years is about 30% decline, but then its a very slow decline up to the 10yr mark.

  As others have said, a Japanese car is generally cheaper to keep on the road. Service costs are pretty low and even genuine parts are a fraction of the equivilent of a eurocar.

  I've had two friends who have sold their corolla's privately, one took 6 days the other 8 days from advertised to sale. I recently sold a current shape Mazda3 and it was a dissapointing 11 days!

  • 

    plmko on 01/03/2015 - 02:37

    +2

    Yep, ignore the extras and go straight for the base model SP25. Resell value is high because in 5 years time what do you think P-platers are going to be attracted to, some outdated sat nav or more sporty power?

    • 

      THL on 01/03/2015 - 15:57

      Yeah I'm thinking to get either the SP25 or the SP25 GT. The specs are just simply too attractive for the price it comes with.

• 

  RockyRaccoon on 01/03/2015 - 07:36

  +1

  Its all here

  https://www.mynrma.com.au/mynrma/operating-costs-calculator.…

  Running Costs calculator takes the hard work of pinpointing how much it costs each week to own and run a new vehicle. The analysis takes into account CTP insurance, fuel, tyres, servicing, registration, maintenance, repairs, roadside membership and depreciation.

  Plus you can recalculate the cost based on the price you pay. If you get a deal of say $2000 off you put in that price.

  and even more here

  http://www.mynrma.com.au/motoring-services/buy-sell/buying-a…

  No need to be a member to access

  • 

    THL on 01/03/2015 - 15:46

    +1

    Thanks Rocky! I've been trying to look for a website like this that has the information about running costs, this is really helpful.

• 

  Euphemistic on 01/03/2015 - 07:45

  Corolla and mazda 3 are both the most popular cars for a reason. Lots of people want the. Because they are good value. They are reliable, well built and well appointed. Years from now that will not change, the used models will continue to lose money, but between these two they will still be sought after by people who want a good reliable car and will maintain similar value.

  There probably isn't two other model with a similar rating 'value' wise. Just have a look at the prices of the two you have listed in the used market. Mazda and Toyota command a premium over pretty much everything else in the market

  Either way with those two you won't see any difference down the line.

• 

  Cheeper on 01/03/2015 - 10:52

  Depreciation is only one of the factors that will empty your pocket with cars…
  Don't overlook the others… after all, it is the amount of $'s that leave your pocket during the period of ownership that end up being the total cost of ownership.

  Also Consider…
  ..Servicing costs… some dealers charge rip off prices for servicing, some charge $500 or more for a ""minor"" service. Check the servicing costs before purchase.
  ..Durability… It is not unusual for some cars to have major component failure at an early stage and this continues throughout the life of the car. That stuff is just slack ass design and engineering.
  ..Insurance… some cost more to insure than others.. get a quote or two online for your favoured car to avoid a surprise later on.
  ..Fuel consumption… Check what people are getting from the car in real world use. The figures quoted by makers are usually very fictitious.

  Usually the cars that maintain reasonable value are the ones that shine in the things mentioned above, the word spreads and the car becomes popular and creates the demand which increases the price.

  Mind you, after 10 years cars can vary a lot so what they may be worth after that time is a mystery.

  Also at purchase time make sure you have done your homework and get the best deal possible. Avoid the add ons like paint & fabric protection and any other profit booster the dealer may try to push.

  Out of the 2 you mention I would go with the Corolla. Alternatively if you can handle a slightly larger car then look for a used Camry with the 2.5 motor, over 10 yrs of ownership I would put it above the other 2 for having the lowest outlay of $ during that time.

  • 

    RockyRaccoon on 01/03/2015 - 19:15

    Addressing the comment about a used Camry.

    Currently a Corolla base is sold for $23990 on the road.

    A Camry Altise is $26990 on the road.

    http://www.toyota.com.au/special-offers

    The Altise includes Alloy wheel, reverse camera and metalic paint. About $1000-1500 of extras on the Corolla. Given its a bigger car there is very little difference, if you want a larger car.

    Having bought an Altise last year, having already owned a 2004 Corolla since new, (which is now the second car) I am very happy with it's performance getting sometimes 6.7L/100km on longer runs.

    However looking at resale values on the Camry 10 years old, they are lower than the Corolla. So you will take a hit on the resale later down the track if the same applies in 10 years time, which is likely.

    That said I do not regret buying the Camry (which as an undriven demo, was a lower price than the current $26990).

    And yes it's not the fastest or the flashest car, but it is a comfortable and pleasant car to drive.

    BTW the comment on fuel "fudging" is in effect what the standard test aims to avoid. It's the same for every car. If you get one that says 7L/100km and get 8L/100km its likely you would get the same variation on any brand car over the standard. Given we all drive differently. (that's the theory!!)

    • 

      Cheeper on 02/03/2015 - 00:21

      Re the fuel consumption figures… An example of how they are guestimates…
      Not sure for the current model but with the previous model Kluger, Toyota quoted the same figures for the AWD and 2WD version. The AWD version in that car is a bit on the thirsty side while the 2WD returns amazing economy. So much for the accuracy of their figures or even caring that they were obviously wrong.
      Do your research and find out the real facts on the new car you are looking at… there's a lot of misinformation around.

      BTW Rocky.. I was recommending buying a used Camry.. say 3y/o, preferably with the economical 2.5L motor.

      • 

        RockyRaccoon on 02/03/2015 - 07:10

        BTW Xywo, we agree in the 2.5L motor, the Altise uses that. And according to the standard fuel usage, its only about .5 of a litre more per 100km (freeway).

        I only made the suggestion as an alternative in case the OP only wants a new car.

        S/hand would reduce the depreciation effect, but it is "used". Obviously more impact depending on how long they keep the car.

• 

  lenlynn on 01/03/2015 - 11:10

  I second the Toyota* too. Was looking at buying a second hand one a couple of years ago and Toyotas were generally the more expensive ones for their age. I sold an 18year old Toyota for 6k two years back after using it for 1.5years (bought for 8k I think). Even if you decide to keep the corolla for more than 10years, you know they will last that long without issues and can sell it at a gd price after.

  *might be biased. Family has got 4 Toyotas of varying ages.

• 

  rigby75 on 01/03/2015 - 11:21

  +1

  European cars aren't made for our conditions and fail sooner.
  American cars have poor build quality and we only see limited numbers as our market is small
  The Japanese cars have and excellent build quality and hold together better.

  Maintenance is the key with any vehicle. I would be happy to pay a little extra for a used car with goid service history.

  • 

    [Deactivated] on 02/03/2015 - 00:43

    -5

    That is the biggest load of bullshit I have ever heard.

    You'll find plenty examples of million mile cars from every country. Generally speaking German made cars are very well built and last a long time. A lot of Japanese cars still aren't galvanised and rust themselves to death.

    • 

      Euphemistic on 02/03/2015 - 07:40

      -1

      Everyone seems to have forgotten the Korean and Chinese cars.

      Hyundai have come a long way since they first started out, I would consider one now. Kia are built as a sister car to Hyundai so are probably ok too, but the last one I drove (7-8 years ago) wasn't a patch on the older Toyota we owned at the time.

      Chinese cars are probably made up of recycled $2 toys they couldn't sell and likely have the longevity of the $2 toys too. Built down to a price, not up to a standard.

      • 

        [Deactivated] on 02/03/2015 - 08:42

        Except the Koreans are still pretty much the worst cars on the market, still. It's just that the whole game has moved on, and the only people who buy them are first time car buyers, or people who know nothing about cars. They get in and say 'wow, electric windows as standard!'

      • 

        Serapis on 02/03/2015 - 21:37

        First car was a 1990s Hyundai, upon getting in an accident and not dying, discovered front bumper is a sheet of hard plastic backed by Styrofoam…. Never again

      • 

        rigby75 on 03/03/2015 - 07:38

        @Serapis:
        Most cars front bumpers are like that.

      • 

        rigby75 on 03/03/2015 - 07:40

        He didn't ask about Korean cars, hyundai and kia are great cars and just as good as the Japanese.
        Alot of the Japanese cars are now built in Thailand.

• 

  MementoMori on 02/03/2015 - 15:43

  +3

  Just check on redbook.com.au for 3-5 year old version of your car.

• 

  raffaharley on 02/03/2015 - 16:35

  +1

  Looks like its up to me to defend the European cars……or at least provide some thoughts.
  Disclaimer you get good examples and bad examples from anywhere and European cars could be made in several different countries too.
  I have owned Japanese, American and European cars as well as rented many of these cars in my travels…one thing I can assure you is the build quality and finish of European cars is second to none. To me the Japanese, Koreans and Americans provide some very good examples but like for like at the end of the day the Euro cars win hands down in my opinion. My impressions are that the quality of the plastics and rubber just have a better feel, the interior has had a lot of development and thought in its function, layout and finish, moving switches and other parts have a more positive action. The brakes have a better feel, the ABS is very subtle and don't scare you half to death when they come on like many other cars. I could go on and on but basically you wont miss what you've never know. So if you haven't owned European then everything else will seem okay. But if you have its very difficult to go to a car that's non-European.
  So what I'm saying is if you know someone with a Euro car that would be around the same sort of money….well lets say a bit more because generally they are a bit more expensive, try and borrow it for a few day or better still see if you can try out one from a car dealer for a few days then jump into an equivalent Japanese car and see which you prefer.
  At the end of the day you are laying out quite a bit of money in either case so keep your options open.

• 

  [Deactivated] on 02/03/2015 - 17:18

  For now, in everybody's mind : Toyota is synonymous with longevity. Perception and demand drives resale prices. The price + age + miles curve for toyotas are way higher than any other car. Mazdas are close behind though. Who knows what will happen to resale price for today's new cars in the future.

  If problems happen, people talk and it will affect the reputation and hence, resale prices. In my opinion, both manufacturers are good enough and their reputation well earned. Choose a car you like now, the thousand dollar difference in resale price is a small sum when compared to your enjoyment over the next few years.

  If the resale price is the only deciding factor left for you, go for a toyota. Base model maybe. Personally I would go for the mazda.

  • 

    THL on 02/03/2015 - 19:03

    For now I think i'll go for the Mazda 3 as I think it's a better car in terms of the looks and performance(also a bit more pricey). I was just considering whether there's a significant resale value difference between Corolla and Mazda 3. After reading all the comments I'll go for the Mazda 3!

    • 

      [Deactivated] on 03/03/2015 - 11:24

      Good choice. Based on the information available now, probably not very much different. The average resale price MAY even be the same in the future because fleets "tend" to prefer toyotas and given how today's markets are leaning heavily towards smaller cars. Kind of like how private sellers of 5 year old toyota camrys make a larger loss ex fleet sellers with a lower original price ceiling. Disclaimer : Just speculating but the current used car market is really flooded with ex fleet camrys.

  • 

    RockyRaccoon on 02/03/2015 - 21:08

    Good point on resale. In 5-10 years a well kept basic model of almost any brand will resale for almost the same as the higher up models, so you lose less in depreciation percentage wise.

    So only buy what you need or want now. Don't pay more expecting it will get higher resale

    The only issue with the Mazda 3 is the head room. If you are tall or have tall friends its lower than the Toyota.

    Being over 6ft this killed this as a choice for me. And the latest version was lower than the 2013 model. Everything else was very appealing

    It's a very nicely put together car