Which Car Will I Lose The Least Money on?

I have another baby on the way and looking for a car that we will lose the least money on after 5 years.

We currently have a i30 n-line that has just hit 5 years old. Purchased new for $25k and looks like it's now worth, well, 25k which is a great free bit of motoring. Great car but too small.

Looking for some soulless SUV/Wagon thing that will have little depreciation like the i30 did. Would want to negotiate the best deal and also consider future value.

My thoughts have been to get a 2023 demo with less than 5,000km and go in strong at EOFY.

Found a few that would work:

  1. Subaru Outback - $41,000
  2. Mitsubishi Outlander - $38,000
  3. Sportage - $37,000
  4. Tucson - $36,000
  5. Skoda Karoq - $36,000
  6. CX5 - $35,000

Looking at older examples with the same km it looks like if I can negotiate the outback down to $39,xxx it would hold its value well or the Tucson would also do well. Just want a base model gutless baby hauler. We have an RS3 as a second car and family access to a gt3 991.2 so don't care about anything else but resale.

What would you recommend? I have no budget just want to lose little at the end of 5 years.

Poll Options

  • 60
    Subaru Outback
  • 17
    Mitsubishi Outlander
  • 7
    Kia Sportage
  • 2
    Hyundai Tucson
  • 7
    Skoda Karoq
  • 130
    Mazda CX-5
  • 23
    Other

Comments

  • +30

    Toyota Rav4 will probably retain the value the best, but the Sportage is the better car.

    • +5

      I've ruled out the Rav4 because the dealers will not do a deal (too good of a car I guess). I figured that it's better to get sharper pricing on a slightly more depreciating car which would actually work out better after 5 years.

      • -1

        I've ruled out the Rav4 because the dealers will not do a deal (too good of a car I guess)

        It's in high demand for good reason

        I figured that it's better to get sharper pricing on a slightly more depreciating car which would actually work out better after 5 years.

        If you want to best possible TCO you'll probably want something older. 10 year old cars can be bought and sold for nearly the same prices these days.

        • +2

          except for all the repairs you need to do on that 10 year old car during your period of ownership, that's where you lose

          • +5

            @Sinnerator:

            except for all the repairs you need to do on that 10 year old car

            What repairs are these? I've owned plenty of older cars and not had much of a problem.

          • +1

            @Sinnerator: The $20k price difference helps with thw repair bills.

            • +2

              @Euphemistic: I bought a 12yo Honda Civic and kept it for 19 years and tracked expenses - fixed costs averaged about $1Kpa - including fuel and repairs averaged about $2Kpa

              including depreciation -
              I bought it for $5K and sold it nineteen years later for $2K

              I suspect the sunk cost of a $40K car compared to a $5K car - if invested in like my ETFs that went up 80% last year, or even 5% average on that $35K difference would get you $1750-2800pa - i.e. the opportunity cost of spending more on a car that loses value rather than putting the same cash into a growth investment.

              • +1

                @Hangryuman: If you don't mind my asking, what ETFs did you have which went up 80 percent last year?

          • @Sinnerator: Wife bought a 2001 au ford 20 years ago apart from exhaust, tires and servicing no other costs that cars my daily driver to work. We also have a 2010 triton apart from tyres and services no other costs.

            Ive never had a car that cost me lots but maybe being regional we dont have the stop start driving in the city makes a big difference.

            • +2

              @2esc: I reckon it makes a huge difference. Engines are designed to be run and at optimal operating temperature. Short trips and irregular use are the death of modern engines.

            • @2esc: That's amazing. No timing belt, automatic transmission, radiator, or other major repairs in 20 years?

    • -1

      Any car OP doesnt drive very far is the short answer.

      Low kms = better resale value

      All cars retain good value when cleaned and maintained regularly and service records are kept on file.

      And then presented immaculately when put up for sale

      But otherwise any Japanese car!

  • +11

    RAV4 hybrid most likely.

    • +2

      A work colleague finally got hers in February after 20 months wait.

      • +2

        I always wondered if anyone was actually waiting that long for cars.

        I was buying a car a couple of weeks ago and wandered over to the Toyota dealer to look at the Yaris Cross Hybrid. '12 to 18 months wait' was the sugar coated message from the salesman. 'Only' six months for a Corolla.

        I walked out and went to a Mazda dealer. Brand new 3 delivered two weeks after signing.

        • I have a work colleague that also only just got his, I think he had a 22 month wait. Personally I am not that patient, my last car had a 6 month wait and I got around it by making a deal on a cancelled order, didn't quite have the exact options I wanted but I could pick it up the same day.

      • 24 month wait here. I was fortunate in a way that I wasn’t in a hurry and that my current car was sufficient for the time period.

  • +2

    My thoughts have been to get a 2023 demo with less than 5,000km and go in strong at EOFY.

    These are likely used cars, not new. Highly unlikely to still find 2023 demos on new car lots, and they wouldn't give a shit about EOFY if they have wait times anyway

    Just want a base model gutless baby hauler.

    FYI base model will suffer worse depreciation, due to being up against ex hire cars etc

  • +7

    which is a great free bit of motoring.

    All thanks to covid

    • +1

      That and they have become a magnet for p-platers for some reason. Lots of demand from the youth.

    • Buying a used car for $8000 and selling 3 years later for $10000 was a once in a lifetime experience I will never forget.

  • +8

    Why don’t you just put the baby seat in the gt3

    • My brothers car, I don't think he would enjoy that as entertaining as it would be!

    • +25

      Resale would be horrendous on a Haval.

    • +12

      Second hand/demo should go okay for resale.

      No-one is buying old second-hand Chinese cars…

    • +2

      Lol, resale would be absolutely atrocious.

    • +4

      Did you even read the title of this post?

    • Joy to drive - compared to what - how many in the same class but not cheap and nasty chinese have you had before ?

    • -2

      Go to Chatswood.
      Plenty of Australian based operatives showing their support for the CCP with their Havals and MGs. All look to be in a state of joy.

      • -1

        How can you tell when most of them are still wearing masks!?

      • What would be the alternative that supports Australia?

  • +4

    Mazda most likely to retain the most value, and likely to be #2 in reliability when compared to a Toyota. But of course, best retainer of value is a Toyota, especially a Hybrid.

  • +3

    Low depreciating base model gutless baby hauler: Suzuki Jimny XL or Yaris Cross Hybrid

  • +4

    Camry!!!

  • +7

    Honda CRV?

    • +2

      And this has way more space compared to cx5

    • +1

      The new ones looks pretty nice. Will look into it. Hate their new dealer model of fixed pricing however, means I can't negotiate to lower final depreciation.

      • +1

        Ha ha ha. Negotiation to lower depreciation. Thata a new one.

        Fixed price - bad. Being able to 'save' a couple of thousand because the dealer has marked up by that amount - good? Is that how it works?

        • +2

          Well, IMO if you paid 30k for a honda, everyone paid 30k for a honda so the used market adjusts from that point. If you buy a mazda that is listed at 32k. Some people have paid that, others, 30k and others 26k. If you are that person paying 26k the depreciation will be lower as the average new car price paid is higher than what you did. That's what happened with my i30.

    • +1

      No Honda rentals either, they don't fleet their cars so the used market isn't full of ex rental crap.

      End result is usually a better trade in price

  • +5

    You might as well ask for stock tips

  • -3

    Honestly with the plethora of cheap Chinese suv's hitting the shore these days any car in this price bracket is going to be fcuked.

    In that price range i'd go for a used Haval H6 hybrid personally. 7 year warranty, can be had for peanuts, extremely well specc'd over the other alternatives.

    I've owned Sportages and loved them but they're no longer the best value car on the market.

  • +8

    At this point in time its unknown. EVs are becoming a real thing wirg more variants available. Lots of new hybrid models. Current market is stil recovering from covid, but new car sales have marekdly slowed due to cost of living
    Its really guesswork to see what will happen in 5 years.

    Youd be better to focus on lower running costs than resale value. Anything that uses less fuel (or no fuel) will be easier to sell in 5 years.

    No budget? Why not an EV.

    • Based on the OPs comments, budget is under 41k as OP not going for RAV4.

      • +3

        Op said there wasnt a budget, but reading between the lines RAV4 was out because had to pay retail.

        No way id be buying a non electric 'nothing special' car these days.

        • +5

          Automotive industry data suggests EV's are slower to sell and see a dramatic drop in their retained value after two years, particularly when compared to the rest of the market.

        • +3

          No way, I would buy an EV these days unless I'm driving at least 20,000 Km per year.

    • +3

      Would love an EV, something like that new Hyundai Iconiq N thing. I fear depreciation on EV's. History has not been kind.

      • +3

        Hustory has not been kind to EVs for a few reasons.

        Because of misinformation.
        Because the models that are selling second hand were originalmy high spec early adopter models. So not dissimilar to depreciation of a merc or bmw.
        Becasue the market is very new.

        2nd hand EV sales in europe are going gang busters because theres a bunch coming off lease, people are realising the batteries dont need replacing like 'they' told us and charge network has improved so charging is less of an issue and sparks are cheaper than dino juice.

      • +1

        Would love an EV, something like that new Hyundai Iconiq N thing. I fear depreciation on EV's. History has not been kind.

        How much do you drive?

        When I switched over from a Toyota Aurion to a Tesla Model 3, I was saving close to $250 per month. I drive ~40km per day to work, so I usually did a full tank every week (which was ~$100, so ~$400 per month). My power bill has been ~$150 higher since I was charging it. If you have solar, it would even be a bigger savings. Petrol prices are only going one way, obviously electricity prices can also increase, but put in some solar panels - the sun isn't going anywhere.

        That's $3,000 per year, or $15,000 over 5 years, which is a significant amount. You also pay less in maintenance.

        I personally wouldn't pay $40k+ on a combustion vehicle when a Tesla Model Y is $57k. Its features are significantly better than typical base model SUVs, will be cheaper to run, more comfortable / quieter, easier to drive with all of the autopilot features. https://www.ozbargain.com.au/node/846836. Keep the RS3 for the fun, the Model Y will be a good complement.

        The market will be significantly different in 5 years time - EVs are still seeing high depreciation now because they're still an upmarket car (both in terms of price and perception). No different to how a Merc / BMW / Audi also sees high depreciation. People who are buying SUVs are buying new and putting them on novated leases. When the novelty wears off and people are looking at EVs as a "second car", the market will be fine.

        Do the spreadsheeting and figure it out - if you drive a lot, it'll likely be cheaper even with the higher depreciation over its lifetime.

    • Yes, it's hard to guess what the market will be with so many different factors at play.

  • +2

    BYD sea lion
    You’ll make up the difference in fuel economy

  • How is resale value of Kia Picanto these days? How much you lose?

  • +4

    I love my VW Passat Wagon. Pleasurable to drive and super practical for a family too. The boot is bigger than what you get in most SUVs, and it's low enough for kids to easily get in and out (especially great for school dropoffs and pickups). Even second-hand, they're better than many new cars.

    • I love my VW Passat Wagon(volkswagen.com.au). Pleasurable to drive and super practical for a family too.

      A friend has a Passat R-Line - now that is the best of both worlds. All the benefits you mention and then, when you put your foot down….

      • Yes that's what I've got. Beautiful car.

        • Yes that's what I've got. Beautiful car.

          Even taking into account the issues many Euro cars have this would be the one car I would buy with no second thoughts.

          Looked after my friend's one for a week while they were away and I found very difficult to hand it back. As you say, it's a beutiful car.

    • +3

      it's low enough for kids to easily get in and out (especially great for school dropoffs and pickups)

      This. This again. So much this.

      I don't understand why people have this view that SUVs are more practical for kids. I drive a sedan, and my kid has been able to climb into the car and up onto his seat since he was 2 years old because it's low to the ground.

      I go to school drop-off and see so many parents lifting their kids in and out of huge pickups and SUVs. At some point I wonder if everyone has just been duped by the car manufacturers, or if they just want SUVs for the ride height (which is actually less comfortable, because you can recline less, but I digress).

      • +1

        Agree that its harder for kids to get in and out without help, but as a taller person a taller car is better for putting bubs in seats. Buy, IMO most city SUVs (CX5 etc) arent tall enough to make a huge difference.

    • We have a Golf Wagon and love it too. So practical! We actually love it more than the current model RAV4 Hybrid Cruiser we swapped it for (and pocketed 20k!)

      • You mean you profited $20k?

        • Yes, we got $20k cash and a Golf wagon in exchange for the RAV4

  • Outback.2016 195k and only just serviced, no other repairs. Great for family

    • 195k and only just serviced

      How did the oil look after 195,000km?

  • +4

    If you really want to loae the least money on a car, buy something 10yo.

    • +1

      Yea, but want something new for warranty and capped price service reasons. I always buy used for myself but wants the Mrs in something fool proof.

  • +1

    What happened to FreddyMERC?

    • +4

      He got weary of his high-yield investments

  • RAV4 Hybrid

  • +1

    LOL… How the (fropanity) did a Skoda make it on that list? JFC. Buying a rebadged VW would have the same effect as putting half your money in a blender.

    Oh, and the i30 N-Line… you bought it new 5 years ago for $25k? Must have got it "pre-covid" on run-out. I thought they started at about $30k + onroads??

    Anyway, soul-less… Outlander. I had one from work, and the car just "existed". It literally is the beige of motor vehicles… but they were competing with rental car companies, so resale was terrible. Might have changed now that most rentals have moved over to MG ZS.

    And the other things you have to look at is actual depreciation… because you can buy a $50k SUV that depeciates 35% (loses $17.5k) or a $30k Chinese shitter that depreciates 50% ($15k), it just looks worse on the Chinese shitter, but it actually loses less "actual" money. A mate did this with an Isuzu Dmax when I got my Great Wall back in about 2012. In the 3 years we owned them, I could have given my Great Wall away for free and still have lost less money than he did on his Dmax…

    My advice… buy something 1 to 3 years old that has already had a large chuck of the depreciation eaten out of it that has low km and then just drive it into the ground for the next 10 or so years.

    • +3

      At least it's a skoda an not something French! It was a manual but brand new not in stock car. I also teamed it up with the carlton football club promo which gave me an extra $500 cashback, paid $24,800 all up drive away (and got free tint and mats). Appreciate the advice.

    • How the (fropanity) did a Skoda make it on that list?

      I had a good laugh. I love my Skodas and VWs but depreciation isn't their strong suite

  • +2

    Rather than resell I would more focus on being able to sell it. No use worrying about the price in 5 years time when your listing is just going to sit there for months when the time comes.

    With Toyota though, there's no worry there. A lot of people don't understand that part enough.

  • +1

    are you buying a car to resell or to drive?

  • +5

    How is an i30 too small for a young family?

    • Not exactly a roomy car to start with - few decent hobbies / sports and gear and it fills fast.

    • +1

      Pram takes up almost all of the boot, then if you go shopping, to the beach, park or weekend trip you can’t even take many bags, kids bikes etc.

      I recon it would actually become usable again once the kids are at school age but not for 2 x adults and 2 x baby / toddlers.

    • As per other comments, the pram takes up the entire boot. Add in nappy bags, portacots, high chairs and the i30 is too small for one baby yet alone two.

      • +3

        I managed all that with a MY14 cerato with a now 8 and 5 year old. That pram must be huge.

        • Huh, I have two the same age, got by with a Kia Rio including pram in boot. Only getting tight in the back now with the dog (cavoodle).

      • +3

        Compact lightweight stroller would be much cheaper than a new car.

        • I think I had a $40 aldi one, still have it and don't need it.

          Maybe he can't fit the inflatable pool, beach buggy, ski gear, car fridge and kitchen sink in all at once?

          I even managed just recently to put 4 half-sized suitcases, 4 carry-on cases and 3 personal bags to go away on a month long overseas flight.

    • Agree. i30, Golf, Cerato, etc are considered family cars in Europe. Not sure why Australian's need so much space, particularly if you live in a capital city.

  • +3

    How often do you need the extra space?
    It might be easier and cheaper to get roof racks and a storage pod for the i30?

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