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

    • boostpak on 09/05/2018 - 08:29

      also username checks out

  • lung on 07/05/2018 - 15:37
    +1

    https://www.canstar.com.au/car-loans/top-10-cars-depreciate-…

    also if you have a friend who is savvy with cars, auctions are a good place to consider as they're typically bought for less than what's expected on carsales.com

    • ozzpete on 18/05/2018 - 17:47

      if you have a friend who is savvy with cars, auctions are a good place to consider as they're typically bought for less than what's expected

      Great point. Also, if you get a vehicle with an issue that is cheap&easy to fix, you will often come out ahead. ie. 2 faults that cost $100 each to fix, will actually usually deprecate the cars value much more than the $200. Any buyer is thinking in their mind its got stuff wrong with it rather than thinking its just small/cheap repair, then I have a perfect car worth more than what i paid

  • sapnak on 07/05/2018 - 16:37

    If interested I am selling my Honda Civic only for 13K with 55000 KM model VTI-L. Just minor scratches on bumper.

    It will hold the value or even can get you 14K, if bumpers are repaired. I am already having a quote for $500 to repaint the bumpers.

    Full log book service from Honda and 6 months Rego

  • aaachu on 07/05/2018 - 17:16
    +1

    No one rec'd a Prius?

    In 2012 or 2013 I bought a 2008 model Prius for 11k, it had 90,000km
    -It's one of the lowest maintenance cars with very low cost servicing
    -Prius gets a $100 rebate for rego (pls check this)
    -It get about 800km per tank (40-45L ??)
    -The back seats can be reclined and make a flat bed, My gf and I had pretty decent sleeps in this car on quite a few of our road trips (poor camping weather or just not wanting to pay $$ to rent a place)
    -It's very spacious

    Just checked carsales
    - 209,000km Prius selling for $8000
    - 145,000km Prius selling for $9500

    Mine is around 145,000km today so the annual depreciation is approx. $300/year. If I deduct the rego rebate, fuel savings, and accommodation costs saved, I am actually making a gain.

    For me, this is one of the best purchases I've made and in hindsight this purchase may be considered as an investment

  • zooter on 07/05/2018 - 17:31
    -1

    why would you want to pay 12K on a car that you're planning to sell in a year? Why not just buy a cheap one for 4 or 5K and save the rest of the money? If prestige matters to you that you need to have a decent looking car, then I guess you're on the wrong forum and shouldn't be bothered about what you buy for 12K

    • Samyool on 07/05/2018 - 21:24

      why would you want to pay 12K on a car that you're planning to sell in a year?

      12k is a maximum. Happy to pay less. Read the OP.

      Why not just buy a cheap one for 4 or 5K

      Read the OP.

      and save the rest of the money?

      If I buy it for 12k and sell it for 12k, how is that different from "saving the rest of the money"?

      If prestige matters to you that you need to have a decent looking car,

      It's not about prestige or having a decent looking car, it's about trying to avoid something like this.

      then I guess you're on the wrong forum

      I'm asking for advice on how not to lose money. How does that make Ozbargain "the wrong forum"?

      and shouldn't be bothered about what you buy for 12K

      I am bothered, which is why I asked.

  • andyhui01 on 07/05/2018 - 17:57
    +1

    Corolla > Camry. Camry for 12k would be newer than Corolla at 12k. Old cars depreciate slower. Just make sure it is auto and a normal colour. Try to get a mid spec for the price of a pov spec with decent service history.

    It is pretty easy to talk down the price from private sellers as they don't have a clue about cars (hence owning a corolla). Confuse them on the spot about pov spec ones being cheaper but further away so you cbb going there… etc. I've helped buy cars for cousins and friends who wants a runabout after arriving in Aus and I have always got mid spec car owners thinking it is the same as pov spec ones.

    • Munki on 08/05/2018 - 10:27
      +1

      Hey Andy Hui, are you still singing? Are you still with Sammi? Are you guys having kids yet?

  • Punda on 07/05/2018 - 20:55
    +1

    Pay less and get a Mazda or Subaru liberty. They still hold their value.

  • Skinnerr on 07/05/2018 - 22:34

    Ctrl+f=Camry 28.

  • johnno07 on 07/05/2018 - 22:46
    +1

    Catch an uber for 9 months?

  • ESEMCE on 08/05/2018 - 09:08
    +1

    The more you spend, the more you'll pay in Stamp Duty, which is pretty much guaranteed lost money unless you can sell the car for more than you paid!
    Pretty much anything in the $12k price segment you'll be able to on-sell for around the same money.

    I'd check out 2013/14 Kia Cerato, should be able to pick up a low Km model, still under warranty which always helps to maintain value, and this era body shape (IMHO) looks better than the new model.
    Maybe look at the GDI model (Si specification or higher)

    • knasty on 08/05/2018 - 14:03

      Yep I'll shortly sell exactly that car (but 1.8) and whoever buys it will get a great car at a cracking price. One of the few small cars that could fit 3 car seats in the back so decent room for midsized family.

  • miicah on 08/05/2018 - 09:55

    Honda Jazz

  • WhatWouldBiggieDo on 08/05/2018 - 13:18

    My advice would be to buy an MX5, either an 'NA' or 'NB' model code. I've made money on the last 4 i've owned. Just make sure you buy a decent example.

    • Major Mess on 09/05/2018 - 05:39

      What does he do with the two kids in an MX5?

      • WhatWouldBiggieDo on 09/05/2018 - 12:49

        Should've read the whole thing really shouldn't I?

  • johnash on 08/05/2018 - 14:26

    hey Samyool,
    It's the good thought to buy the second-hand car instead of taking the new one. To purchase the second–hand car is not the nasty idea at all; in fact, it permits to invest in a car and still have enough money left to spend on alternative necessary stuff. But the important is that one should have all the required details of the vehicle including written off, theft records, registration details, vehicle details, and encumbrances because I had purchased the second-hand car but I didn't take the required details and there were lots of defaults in that car. so I recommend you to have all the details and I know one who help you in obtaining the details i.e. https://www.revschecker.com.au/.

    • Euphemistic on 13/05/2018 - 07:12

      Don’t use that website. All it does is provide the govt provided one on a fancy letterhead. The govt one is around $4. ppsr.gov.au

  • coupeborgward on 08/05/2018 - 14:28

    Buy a classic car and you may even make some money :)

  • sunnyc on 08/05/2018 - 22:32

    Can you car share if you don’t drive often?

  • bchliu on 09/05/2018 - 01:25

    I would recommend a Suzuki Swift with your budget. They really don't lose much value over time because there's a good 2nd hand market demand for them especially the new-platers who either look for these or have their parents buy them. I believe you should be able to sell it with maybe $1k loss over a year assuming you look after it right.

    • boostpak on 14/05/2018 - 08:44
      +2

      be a man and buy a swift and look like a p plater 18 year old female

      • bchliu on 14/05/2018 - 09:01
        -1

        Sounds like you have a masculinity problem - if your penis (or lack of) is determined by what sort of car you drive.
        On topic: OP did not put any requirements around the type of car other than something that does not lose value over 12 months and basically a city car etc. Something his missus will also drive around too.

        • [Deactivated] on 14/05/2018 - 17:28

          There is no denying there are effeminate cars and masculine cars. Just like there are dresses and pants. Men can wear both, but generally men don't wear dresses. Equating someone's choice of car to their penis size really says more about you than them.

        • boostpak on 22/05/2018 - 16:28

          No problem at all, just stating facts, you seem to get a little defensive there. But yeah if you want to look like an 18 year old female P-plater who zips around town, then sure go get a Suzuki Swift.

        • Lucky13 on 24/05/2018 - 01:34
          -2

          @boostpak: Suzuki Swifts these days are pretty gender neutral IMO. Personally would buy a Toyota or Mazda though, as they're well made and will serve you better in the long run.

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