Looking to Buy a 2nd Hand Car That Won't Lose Much Value in 9 Months; Budget: $12k

LSamyool on 05/05/2018 - 15:57
Last edited 06/05/2018 - 08:53 by 1 other user

Edit for clarity:
1. I'm looking to reduce losses, not have zero loss.
2. I need to sell the car at the end of the year (so recommending a car to keep for 10 years doesn't work for me).
3. While reducing my losses is important, I still need to meet the other criteria - family friendly etc.

Original post:

I'm looking for a 2nd hand car to buy that won't lose much value.

The story: Someone ran into the back of my car about a month ago. The damage wasn't too bad, but the assessor said it was a write-off (the cost of repairs was almost the value of the car). So we've been paid out (the good news for me is that the payout is $2,500 more than what we paid for the car originally!). In the four weeks it took to get to that conclusion, my employer has decided to send me overseas for three years, starting at the end of this year.

So now I need to buy another 2nd hand car, but I'll need to sell it again in 8 or 9 months. Being a good Ozbargainer, I'm keen to get a car that won't lose much value over that time and sell it close to the buying price.

Criteria:
* I'd prefer to spend $12,000 or less, but I could go a higher (or lower!) if it will mean not losing money
* I'm in the ACT, so any purchase will include 3% stamp duty.
* My Missus will only drive automatic
* We'd prefer mid size sedan/hatch or small SUV
* We've got two small kids both still in booster seats
* Mainly city driving, with a 200 or 300k trip every couple of months

Questions:
Better to spend maximum budget and hope to sell high?
Or better to buy a crappy cheap car and not worry about the selling price?
Or somewhere in the middle?
What's the best make and model not to lose value?
And how old should the car be for the lowest depreciation?
Better to buy from a dealer or a private seller?
Any other tips?

Automotive

Comments

  • Geryatric on 05/05/2018 - 16:23
    -1

    It will depreciate in value 10-15% per year

  • boxyboy on 05/05/2018 - 16:35
    +3

    Stick with something that has low KM's for it's age, full service history and no accidents. It's always easier to resell. Also, common brands and popular models are good if you buy to keep, because there is more of them on the market and more competition between sellers, you can get a relatively young aged car for a good price. Parts are also cheaper. But it also means they have bad resell value, because of the competition and number for sale in the market the value falls quicker. If you're looking to resell later and want to keep as much resell value then try find something where there aren't as many on the market for sale that you're competing against. For example: https://bit.ly/2HP67pE

    • abuch47 on 08/05/2018 - 17:57

      holy depreciation that beamer

  • SnoozeAndLose on 05/05/2018 - 16:36
    +30

    Toyota Corolla or Mazda 3

    • This Guy on 07/05/2018 - 22:35

      Both depreciate hard normally.

      Both have new models coming out this year (not just face lifts) which will tank their value as current stock is run out and older models become 'dated'.

      A 2012 Rav4 with under 200,000km would be a better choice

      • ESEMCE on 08/05/2018 - 09:03
        +2

        Disagree, for people shopping in the $12k price bracket, it's completely irrelevant what the current model looks like.
        If you were looking at a Demo model, sure, but it's a completely different price-point and market.

        • This Guy on 08/05/2018 - 14:59

          A $14,500 Corolla is under 2 years and current shape. A $12,000 corolla is the previous shape. A $10,000 corolla is the shape before.

          Considering Toyota is about to release a new shape, OP could be hit with $2,000 depreciation in 9 months, which is poor on a six year old car.

        • [Deactivated] on 12/05/2018 - 00:00

          @This Guy: Mazda's have had the same shape for about 3 or 4 years. I'd definitely go with an early nice Mazda 3 shape than anything else if I want it to "look well in a few years".

  • altomic on 05/05/2018 - 16:56
    +3

    just buy a 2008 camry.

    • mskeggs on 05/05/2018 - 19:37
      +6

      Agree, a cheap Camry (or for 9 months, a falcon or commodore) is generic ‘car’ that will lose little value.
      I would choose older and cheaper, as the dollar value of a 10% or whatever loss is minor, and it is only for a short while you will be driving an older vehicle.

      • macrocephalic on 08/05/2018 - 18:34

        Agreed. An old family car (falcon or commodore) will only be a few thousand.

  • Ocker on 05/05/2018 - 17:38
    +1

    Rent a car with the $2.5k profit you made on your write-off

    • Samyool on 05/05/2018 - 17:55
      +6

      Thanks, I did look at long term car rental. The cheapest I could find was $5500 for something too small, and more than $7000 for something that meets our needs. I'm pretty sure that's more than I'd lose from buying and selling a car, even including rego, insurance and stamp duty.

      • based on 06/05/2018 - 11:12
        -1

        What about leasing?

  • loropy9 on 05/05/2018 - 18:14
    +9

    Corolla is the easiest/fastest to sell at a minimum loss. It took me 36 hours to sell my 2006 Corolla on carsales for $6200. Toyota dealership offered me $2500 and when I objected they increased to $4000. For comparison it took a few months to sell my inlaws Honda City 2007.

    • LightningMcQueen on 06/05/2018 - 13:51

      Mine also 2006 corolla, accent sedan model, looking to sell soon. Mine has gone 130000km,my mechanic is happy to buy it from me for around 4k. How many kms yours?

      • movieman on 06/05/2018 - 17:16

        I'm looking to buy a Corolla in September, but am after a 2010 or 2011 at least.

        How much is regular servicing costs for a Corolla, and how often?

        • loropy9 on 06/05/2018 - 22:02

          I serviced mine once a year or about 11000 kms. Cost on average $250.

      • loropy9 on 06/05/2018 - 22:00

        Mine had 115K when I sold it. This was in 2016 so now it would cost about $4500-5000 I guess.

  • smuggler on 05/05/2018 - 18:24
    -2

    Screw the value of the car. Just get a camry and use it for 10 years

    • Samyool on 05/05/2018 - 18:33

      Thanks, that would be fine if I wasn't moving overseas at the end of the year!

      • Slippery Fish on 06/05/2018 - 09:19
        +3

        Do you know any friends with an extra car? They might be willing to lend you scar for 9 months for 2-3 grand. Either that or Camry my friend.

  • Atrophy on 05/05/2018 - 18:49
    +11

    I would just buy a $5000 shitbox with 9 months rego, sell it before you leave for $4500+

    • Kangal on 06/05/2018 - 10:24
      +38

      As long as its a 2003 Nissan Xtrail with high mileage…

      • wozz on 07/05/2018 - 06:36

        Just make sure you get a visual engine inspection that could pick up any possible faults that might occur after 280,000km

  • Ocker on 05/05/2018 - 18:50
    +2

    OK plan B…….
    When I was on an expat assignment (for 5 years in Japan) I actually kept my car and left it at my in-laws place. That way I did not need to worry about wheels when I came home on business or holidays, very convenient.

    • mskeggs on 05/05/2018 - 19:38
      +3

      $1000p.a.+ for rego and insurance buys a lot of train tickets on a visit home.

      • whooah1979 on 06/05/2018 - 08:21

        Motor vehicle tax, ctp and Insurance may be partially refundable when cancelling a rego.

      • munecito on 06/05/2018 - 08:22

        Why would you keep it registered? It can be re-registered when op comes back

        • Euphemistic on 06/05/2018 - 11:51

          In nsw at least once it is out of rego for more than 3 months there is an extra inspection step that needs to be carried out to verify identity.

        • munecito on 07/05/2018 - 09:58
          +1

          @Euphemistic: it is called a blue slip. It costs just a few more dollars than the pink slip and then the other extra cost is $35 for new plates.

          It still outweighs the need to keep a car registered if not in use.

      • Ocker on 06/05/2018 - 09:09
        +1

        Returned to OZ 3-4 times a year so the costing and convenience to keep my own car was a no brainer.

      • idonotknowwhy on 07/05/2018 - 00:27

        Or ubers

    • Samyool on 06/05/2018 - 08:55

      OK plan B…….

      Unfortunately I don't have somewhere to keep the car while I'm away.

    • Slippery Fish on 06/05/2018 - 09:22
      -1

      If you let it sit for years you will have to redo your seals unless it's driven occasionally.

  • spackbace on 05/05/2018 - 18:59

    Camry. Would've said Corolla but the Camry will give you more room for the kids

  • JimmyF on 05/05/2018 - 19:10
    +2

    Looking to Buy a 2nd Hand Car That Won't Lose Value in 9 Months

    No such thing exists in your budget.

    • mskeggs on 05/05/2018 - 19:40
      +6

      Nonsense, a 1996 Magna varies in value between $300 and $1200 depending on the rego remaining. Buy it with an expiring rego and you will sell it for more in 9 months ;-)

      • JimmyF on 05/05/2018 - 19:41
        +1

        budget was $12k…. But sure, buy a piece of crap for $300, it can't really go down much more ;)

    • [Deactivated] on 05/05/2018 - 19:41

      It does.

      https://www.carsales.com.au/private/details/MG-B-1967/SSE-AD…

      You won't experience any depreciation on this car.

      • JimmyF on 05/05/2018 - 19:42

        True that one might hold its value…..

      • Samyool on 05/05/2018 - 20:08

        Haha, that would be a great mid life crisis purchase, but it doesn't quite meet the family friendly criteria.

        • [Deactivated] on 05/05/2018 - 22:19
          -4

          You wan't a $10k that doesn't depreciate, that's your only option. You can't have everything.

    • Samyool on 05/05/2018 - 20:05

      Ok JimmyF, if budget was no issue, what would you recommend?
      Just to clarify, I understand a zero-loss car is pretty much impossible, but I'm trying to reduce my losses as much as possible.

      • JimmyF on 05/05/2018 - 20:33
        -1

        Zero loss and cars can't be used together in the same sentence. It's a rare beast to not go down in value!

        As to what to buy, it's a trade off for value lost and time taken to sell.

        Are you going to want to offload this in a hurry or fixed end date? As this will impact the price even more!

        • DonWilson on 07/05/2018 - 08:32
          +1

          They never said that they wanted zero loss. Even the title you misquoted to make your point doesn't say it. They're responding to you talking about zero loss.

          -edit- well poop, the title was edited. Didn't know you could do that. I take it back.

        • JimmyF on 07/05/2018 - 09:07

          @DonWilson: Correct, the first version of the title was "Looking to buy a 2nd hand car that won't lose value in 9 months; Budget: $12k" As per my quote, its since been changed. ¯\_(ツ)_/¯

      • [Deactivated] on 06/05/2018 - 00:36

        As proved, it's not impossible. It's also easy to do with higher end new cars, that are way out of your budget.

  • Godric on 05/05/2018 - 20:06

    a bike

  • RockyRaccoon on 05/05/2018 - 22:14
    +4

    There is no specific car that fits what you want.

    It all comes down to what you pay for the car.

    A car of any brand that is worth 10K now that you pay 12K for will depreciate at least $2K
    If bought for $8K then you are likely to make $2K

    So how can we advise you.

    The real thing you should be looking for is a car that will be easy to sell when you leave, You dont have too much time to hang around selling it while waiting for the plane. If you have to leave before you sell it, then thats going to be an issue.

    So go for cars that have a good secondhand demand….

  • Gotchas on 05/05/2018 - 22:43
    +5

    Buy at an ex government auction
    Sell for a profit

  • Euphemistic on 05/05/2018 - 23:48
    +3

    The less you pay, the less depreciation there will be. Lower your budget and buy a Camry, commodore or falcon, maybe a rav4 if you want suv. $4k or less. You’ll pay less in stamp duty, and if you buy the right car (ie cheaper than market value) you might even sell for more than you pay.

  • raytriplej on 06/05/2018 - 00:26
    -1

    What location are you Samyool. Different rules for different states.

    I am in Cairns, so I would be looking for an ex-backpacker car with WA
    rego. Or a camry.

    • Samyool on 06/05/2018 - 08:59

      What location are you Samyool.

      I'm in the ACT. So lots of public servants with steady jobs looking for reliable long term cars.

  • Quantumcat on 06/05/2018 - 00:27
    +1

    Do you have any teenage or young adult relatives that want a car but can't afford it? Buy a car, loan it to them while you're overseas with the proviso that they're responsible for rego, insurance etc, then get it back when you return.

    • Samyool on 06/05/2018 - 11:30

      Do you have any teenage or young adult relatives that want a car but can't afford it?

      Good suggestion, but there's no one in my life who fits that description!

  • RobMel on 06/05/2018 - 06:46
    +2

    Consider 2 things:
    When you sell the car will be summer, I would buy a car that is best suited for summer, it should be a bit cheaper now and more expensive then, convertable/outdoor car.
    Also it is still essential that it protects you and your family, don't buy a cheapo with no or few airbags etc.. you will regret it if you happen to be involved in another accident.

    • Samyool on 06/05/2018 - 09:00

      Good tips. Thanks!

  • inherentchoice on 06/05/2018 - 07:45
    +2

    Only way to do this is to get a car at a price sufficiently under what you could sell it for. It's very possible to do though.

    You will probably have to make offers to 30 different private sellers. Search for ads by "ASAP" or "urgent" or "reduced". Also look on Gumtree for old listings that are still unsold and make a crazy low offer. It's not being rude or disrespectful it's just business.

    Probably best to buy something under $5000 as it will be easier to resell.

  • Stegasaurusnext on 06/05/2018 - 08:16
    +3

    Try looking at something like a Subaru outback. They hold value well and tick all the boxes you've got there. Great cars. I think one of the reasons it holds value (like corolla etc. Mentioned) is that they go forever. Some cars seem to have a shelf life of 250,000km.

    Another option (seriously) is a classic. If you don't crash it they will hold value or go up in value. Try early 80s commodores which are now increasing in value due to classic status (which feels so strange to think) or go full cool and look at xp or eh/ej wagons. Teach yourself how to service an old car too, easy to do. If you can find one on LPG it's a winner too.

    With any old car though, get it checked over by someone before buying.

  • srhardy on 06/05/2018 - 08:52

    Do you need a car? Maybe a cheap motorbike or live with the girlfriends car/public transport?

    Can you beg, borrow or 'loan cheap' a car from a friend or family member?

    Id TRY not to buy anything i couldnt take with you, depending on where your going a motorbike might be shipable…

    Or give it to your mum and split the rego (she insures) or something so you have a car when your back in OZ

    my 2c worth

    • whooah1979 on 06/05/2018 - 08:56
      +4

      cheap motorbike

      Not practical with two children and a wife.

      live with the girlfriends

      Op’s wife may have problems that one.

      • Samyool on 06/05/2018 - 09:00
        +7

        Op’s wife may have problems that one.

        Wiser words have never been spoken.

    • boostpak on 07/05/2018 - 15:54
      +1

      really beg? what are we living on the streets or something? he has 12k or more to spend. he needs something decent for him and his wife to drive, and that is safe for their family… also something that won't lose all of its value in 9 months time. your 2c is worth about 2c… rounded to 0c.

  • haimrevolution on 06/05/2018 - 09:03
    +1

    I’ll go one better. The best idea is buy an ok car to get around and if you have someone here who can look after it for you jump onto those websites where you can rent out your car to people. You can make a wad of cash and that will not only pay for rego etc but also provide extra money for you

  • Fudnut on 06/05/2018 - 09:06
    +1

    I was in a similar situation a few years ago, my car was written off 8 months before I relocated to the UK. I didn't have time to shop around as was in the process of moving to parents until I left, so I ended up with a 2005 Magna for $3.5k with 12mths rego. Had 180k on the clock but in good condition. Now that I'm back, I still own it, as it's been a solid car (now 220k), no major issues and everything works. Great car for a family as very roomy and a large boot.

  • Meowcat on 06/05/2018 - 09:18
    +1

    magna

  • ozzpete on 06/05/2018 - 09:45
    +3

    If it wasn't for the fact you have kids (and very young/fragile) I would suggest something very old, such as 1994 Camry was most reliable vehicle I ever had, some people sell them very cheap (cost me $130 last day of rego) and they are still a wanted car, fairly easy to sell, for people who realise how good they are.
    Something to keep in mind for the kids, don't go too old because of safety features . If you're going a bit old, and not sure… check safety ratings etc, some old cars still have everything.
    Regarding selling in 9 months, consider what will sell quick and easy , ie. If you have to sell quick, whats something that will sell quickly. You should edit your post, and add how long do you have to sell, prior to you leaving country
    Also THE CAR YOU WILL SELL AT THE LEAST LOSS (OR PROFIT EVEN) WILL BE THE CAR YOU BUY AT BEST PRICE (UNDER THE GENERAL MARKET VALUE)
    So in a way, nobody can answer your question precisely. I suggest being quite open in your search for new car (to an extent) , find that seller on Gumtree (or other sites) that just wants to sell quick, possibly they have been stuffed around by others for a week, and they just want that genuine buyer, to take car away today, BE THAT BUYER , that buyer a seller wants to deal with, and they will often be happy to sell cheaper, for a quick, easy, and polite, sale :) . Can't hurt to offer politely. ie. I will say something like, Will you accept $1100 cash, if I come and buy and take car away today" .

  • Matslurpee on 06/05/2018 - 10:14
    +3

    Just find a low km toyota, it is more important that you sell it fast when you need to.
    No need to spend over 8k.
    Something like this https://www.carsales.com.au/cars/details/Toyota-Aurion-2007/…

  • grrrr on 06/05/2018 - 11:18
    +2

    or you know, buy a car that will be a joy to drive for the next 9 months…
    AristoV8

    if you are after boring… is it kia that have 9yrs warranty?
    kia optima

    falcon

  • djsherly on 06/05/2018 - 11:57

    Buy a banger for the lowest price with your needed safety features and shell out for car rental for those times you’re going out of town.

  • Meowcat on 06/05/2018 - 14:39
    +2

    Get a 380

  • notfrodo on 06/05/2018 - 15:49

    "200 or 300k trip every couple of months". A 300k trip? Jeez-a-lou! Where do you go?

    • Samyool on 07/05/2018 - 19:11

      Where do you go?

      Sometimes I get a hankering to go 3/4 of the way to the moon.

  • Alexander420 on 06/05/2018 - 16:58

    I have a ford kuga 2012 with 2.5 lt engine petrol if u interest? Let me know if u are interested. Send me a message. Thanks.

  • aldog on 06/05/2018 - 17:47
    +2

    I would look at it this way - you've made $2,500 from insurance from the write-off. Even if you sell your new car for $2,000 less before you go you've still gained $500 in the long run.

  • simouny21 on 06/05/2018 - 19:31

    I'm in the ACT samyool. I could use a used family car.

  • enzioFirenze on 06/05/2018 - 23:14
    +1

    Get a 06 corolla or Mazda 3 under market value and you'll make a profit, camry is a fine car as well but Mazda 6 is a bit harder to sell, I'd say spend 7500 max. If it weren't for the kids, I'd just stick with a Mitsu Magna/Verada

  • Kranbone on 07/05/2018 - 00:10
    +1

    Do you have to spend the full amount. If not, I would buy an older car which has already depreciated more heavily and is less likely to suffer as much depreciation. 2006~2012 Camry would be a good option.

  • idonotknowwhy on 07/05/2018 - 00:28

    Buy any car, then find a way to mine bitcoin efficiently using a car.
    There will be a global shortage of cars by the time you want to sell.
    You'll make a huge profit!

    • Samyool on 07/05/2018 - 19:12

      Buy any car, then find a way to mine bitcoin efficiently using a car.

      That's a genius idea! Why didn't I think of that?

      • idonotknowwhy on 08/05/2018 - 07:48

        well it worked for me when I bought a bunch of gpus…

  • Lucky13 on 07/05/2018 - 03:39
    +1

    Toyotas hold their value really well. Could get a Toyota??

  • wozz on 07/05/2018 - 06:33
    -4

    With regards to 1. I'm looking to reduce losses, not have zero loss.

    Why can't it be a car that has zero loss?
    Or are you hoping to do a car sort of negative gearing thing?

    If your budget can stretch to about 80k you might be better off, as a car around this price bracket is considered a high yield investment
    (you may need to work at a bank for this to apply)

  • [Deactivated] on 07/05/2018 - 08:45
    +2

    Camry Camry Camry Camry Camry Camry Camry Camry Camry Camry Camry Camry Camry Camry

    OK admin, question has been answered you can close the thread now.

    • elgrande on 07/05/2018 - 10:33
      +1

      Have you considered a Camry?

  • Will Mcdonald on 07/05/2018 - 10:55
    +2

    toyota…. toyota. My father drove his toyota corolla with no oil for 500km and the engine still worked for another 2 years.

    • boostpak on 07/05/2018 - 15:51

      what a bloody champion mate, he must be a multi millionaire now with all those savings.

  • crentist on 07/05/2018 - 13:20
    +1

    get something old and japanese and youll be fine. my last cars were a 15 year old toyota echo, bought for 3100 sold for 2800 after 2 years, and a 15 year old mx5 bought for 8500 sold for 7800 after 2 years

    no trouble with either car, and the toyota seemed particularly bulletproof. i used to work for a guy who hadnt serviced his echo in over 10 years, still ran fine.
    just push hard on your purchase price and you can sell it comfortably with little to no loss in a year with no headaches along the way

  • Munki on 07/05/2018 - 14:51

    If money was not an issue, I'd drop $80k on a European luxury car and make money as they're well-known in this community as an appreciating asset. It also helps your status if you're a Westpac graduate.

    • boostpak on 07/05/2018 - 15:52
      -1

      about the 700th time we have heard that joke..

      • yaziyo on 07/05/2018 - 23:09

        What joke? I only see helpful consumer advice.

        • boostpak on 09/05/2018 - 08:30

          the dad joke that's been done a billion times. We got it the first time… can we move on

        • Munki on 09/05/2018 - 09:53

          @boostpak: Computer says no.

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