Cost of Replacement VS Resale Value

L20dollarsis20dollars on 19/03/2025 - 13:56
Last edited 19/03/2025 - 14:22 by 1 other user

tl:dr - GWM Jolion ownership is cheaper as a % and to the $ compared to Toyota RAV4.

Long time lurker, first time poster. The topic of resale comes up a lot when car purchase discussions come up on OzBargain, however I'm not convinced it's important.

I purchased a Haval Jolion in 2021 for $25,990. Redbook now places the high end of private sale as $18k. Redbook has a 2021 hybrid RAV4 as having a private sale price of up to $35,250 (Price when new - $36,800)

A friend just purchased a new 2025 Haval Jolion for under $23k drive away. The cheapest hybrid RAV4 in 2025 is $47,623 on carsales.

If I purchased a new Haval Jolion, my cost of replacement is ~$5k (27.7% on top of sale). If I theoretically replaced a 2021 RAV4 with a new one the cost of replacement is ~$12k (35% on top of sale)

Obviously, the resale is better with the Toyota, but is that completely irrelevant if you have to spend more money to replace it?

$5120 in fuel costs for my 10k kms a year for the Haval, half that probably for RAV4. I think you can negate this saving if you have a mortgage offset account

Have I basically just proved that a cheaper car is cheaper or is this a good take for those looking to buy Toyota just for the resale. Or is only being ~$16k worse off for a car worth $24k more the winner for Toyota.

Automotive Car Haval SUV Toyota

Comments

  • spackbace on 19/03/2025 - 14:00
    +10

    I purchased a Haval Jolion in 2021 for $25,990. Redbook now places the high end of private sale as $18k

    A friend just purchased a new 2025 Haval Jolion for under $23k drive away.

    Sooo… why would a 2021 sell for $18k?

    Also, 1 means driving a Haval, the other means driving a RAV4 Hybrid

    • 20dollarsis20dollars on 19/03/2025 - 14:10
      +1

      The cheapest 2021 on car sales in aus is $19,300 https://www.carsales.com.au/cars/haval/jolion/?sort=~Price

      Your second point makes sense if you think its worth the additional $. I might be more unique than I thought about not caring about that.

      • spackbace on 19/03/2025 - 14:19
        +3

        The cheapest 2021 on car sales in aus is $19,300

        And 2022's are $19,888…

        If you were in the market for one, you wouldn't buy the $19,300 one, would you?

        • 20dollarsis20dollars on 19/03/2025 - 14:25

          My example used redbook numbers which were up to $18k. What number would you use?

          • spackbace on 19/03/2025 - 14:27
            +5

            @20dollarsis20dollars: Redbook don't buy and sell cars, they're used to monitor stamp duty figures.

            I'd use the market as comparison. But you don't have proper data points. 21/22 models are so close in price to a new one that no one would bother with the older one for that price, and they'll either go old stock or the dealer would accept a far lower value.

            • 20dollarsis20dollars on 19/03/2025 - 14:35

              @spackbace: I agree, I wouldn't pay $19k for a 2021. But short of selling my car, car sales for all of australia seems like the best option to see what they are attempting to sell them at

  • JIMB0 on 19/03/2025 - 14:09
    +15

    This is a perfect example of using select facts and figures to support a narrative.

    • 20dollarsis20dollars on 19/03/2025 - 14:11

      Fair enough, this example is specific to me as I probably would have got a Rav4 if there was stock at the time

    • hmac on 19/03/2025 - 14:13
      +1

      Forgot to factor in reliability. Resale value is not even close to the estimate. This is just the tip of the iceberg

  • Drakesy on 19/03/2025 - 14:11
    -4

    RAV4 resale is going to go in the toilet as the chinese cars flood the market with longer warranties (which ultimately dictates depreciation rates).

    Honestly the new RAV4 is just around the corner, the old ones will start to fall off a cliff.

    • spackbace on 19/03/2025 - 14:13

      (which ultimately dictates depreciation rates)

      Not really. Brand is still very much a thing.

      Toyota were one of the last to go 5yrs, and soon after others went to 7/10yrs. Didn't affect the resale, or the resell-ability of Toyotas

      • Drakesy on 19/03/2025 - 14:14

        I'm more thinking the Euro's which after the 3 year warranty drop like a rock.

        • spackbace on 19/03/2025 - 14:18

          That's the exception, yes, same as American cars, but that's because no one expects them to last after the 3 years lol

    • 20dollarsis20dollars on 19/03/2025 - 14:17

      We should already see that if that was the case. I think there's a lot more that gives a car value than a warranty. I think the toyota badge is more important

  • Wiadro on 19/03/2025 - 14:24
    -1

    I’d rather walk than have a Haval.
    Like what sort of horrible name Jolion?
    Really even the brand name of Haval is horrible.

    I’d rather the rav4 or even a cx5 instead.
    If I’m buying a car I want im not worrying about the replacement value anyway

    • spackbace on 19/03/2025 - 14:30

      Power 110.0 kW
      Power rpm From 5600 rpm
      Power rpm To 6000 rpm
      Torque 220 Nm
      Torque rpm From 2000 rpm
      Torque rpm To 4400 rpm
      Power to Weight Ratio 78.6 kW/t

      That would be such a fun drive…

      Compared to a Corolla Cross 2WD Hybrid:

      Power 112.0 kW
      Power rpm To 6600 rpm
      Torque 190 Nm
      Torque rpm From 4400 rpm
      Torque rpm To 5200 rpm
      Power to Weight Ratio 103.2 kW/t

      • Wiadro on 19/03/2025 - 14:37
        +2

        My 24 year old BMW E39 is faster and way more pleasurable to drive than the crap that’s being built now. I don’t understand why one who buys a new car these days too expensive and tooooooooo boring.

        • 20dollarsis20dollars on 19/03/2025 - 15:19
          -1

          This was my thoughts before kids

        • JimB on 19/03/2025 - 15:22

          Your E39 was over $100k back in 2001 so more than half of the median house price.

          The E39 was the pinnacle of BMW in terms of ride, handling, class and quality, even to today.

          Having said that, unless you can work on the car yourself (and the E39 isn't overly complex), it's just too old to recommend today.

          A E39 M5 LCI would be my ultimate daily. I'd even settle for a low km 530i

      • 20dollarsis20dollars on 19/03/2025 - 14:43

        This post was more for people that look at $ over everything. Everyone's entitled to purchase fun, well named SUVs if that's more important to you

        • spackbace on 19/03/2025 - 14:47
          +2

          for people that look at $ over everything.

          That's all well and good for comparable items (like a toaster, that toasts bread), but a car is different and everyone prefers different aspects (which could include the driving dynamics, interior space, features etc). Comparing 2 cars just based on price is ridiculous

  • brendanm on 19/03/2025 - 14:47
    +8

    The problem is still that you have to own and drive a haval jolion.

  • jv on 19/03/2025 - 16:36
    +1

    Cost of Replacement VS

    Seems to vary quite a bit…

  • bazingaa on 19/03/2025 - 17:06
    +2

    why don't you buy a used car? it is already depreciated and you can get a good car for less money

    • JIMB0 on 19/03/2025 - 18:58

      Like a RAV4.

    • 20dollarsis20dollars on 19/03/2025 - 20:38

      I haven't been convinced that used cars since covid have depreciated enough to seem worth it. Especially electric cars. Before covid, i got a 1 year old hatchback for 66% of the original price

      • bazingaa on 20/03/2025 - 09:10

        what about a bit older one, let's say 2020 or so, you can get a good SUV for the price you paid for Julion

  • netjock on 19/03/2025 - 18:20
    +1

    Each to their own.

    It is like that WA tesla owners association spreadsheet from years ago saying a Model 3 is cheaper than Camry hybrid over 3 years.

    Convenient is they expected the residual value to remain as high and also they didn't apportion tire wear and servicing costs.

    Also the opportunity cost with the money. Say if your GMW is same running costs, rego, insurance and you're going to run it into the ground over 20 years just like a Toyota with $0 residual value and invest the difference. Historically $10k could be worth between $100k - $200k.

  • mskeggs on 19/03/2025 - 19:06
    +2

    If you purchase a vehicle purely for financial reasons, you wouldn’t buy either.
    But nobody buys purely on dollars, so i don’t know how you can “prove” anything about car values.

    • 20dollarsis20dollars on 19/03/2025 - 20:47

      What would you buy now if you needed to make the best financial decision on a small suv?

      • brendanm on 19/03/2025 - 20:52

        Something used.

      • Euphemistic on 19/03/2025 - 21:07
        +3

        Buying the 'best financial decision' isnt a thing for most people. Set a budget, then buy the best car you can find in your budget. 'Best' isnt just the best value, it also has to be nice to drive, look at, suit your lifestyle etc.

        • 20dollarsis20dollars on 19/03/2025 - 21:18
          -2

          I dont agree with that. I think you should buy the cheapest car that fits your view of value (including looks, status, drivability). If you set a budget of 80k, but are happy with a base model rav4, dont just spend it because you have it. Almost anyone that bought a house before covid could now refinance and buy a porsche

          • Euphemistic on 19/03/2025 - 21:56
            +1

            @20dollarsis20dollars: Point being that 'best value' is most often not the best financial decision. Theres a range of factors that influecne a car purchase and while budget is important, the rest of the decision are big factors.

            Only very few people with an $80k budget would even look at a base model rav4, let alone actually purchase one.

          • umyeahokay on 20/03/2025 - 07:30

            @20dollarsis20dollars: Status? Seriously?

  • Daabido on 20/03/2025 - 06:58

    Falcon on gas.

    • bazingaa on 20/03/2025 - 09:11

      AU Falcon FTW

  • SlickMick on 20/03/2025 - 09:26

    Have I basically just proved that a cheaper car is cheaper

    This

    Plus also proved that a vehicle that holds it's value becomes relatively cheaper after resale. So your Haval seemed cheaper at purchase, but after resale it turns out there was stuff-all in it. You could have had a better car for a few thousand more.

  • BigBirdy on 20/03/2025 - 17:53

    Your logic is crap.
    You bought a Haval in 2021 & it depreciated $7,990 or 30%.
    If you bought a RAV4 in 2021, it depreciated $1,550 or 4%.
    The Haval cost you more in depreciation.
    Whatever you buy now is a new story.

    • 20dollarsis20dollars on 20/03/2025 - 20:03

      I think why my view doesnt align with others is that I've assigned the same value to each car. A new, small suv that gets you from A to B safely.

      In my specific scenario, i would be $16k better off replacing my heavily depreciating car with another heavily depreciating as opposed to the better, more expensive option.

      Confirmation bias obviously exists, but a better option as has been inferred would be a 10 year old SUV for $15k with $8k ready for servicing costs which hopefully isnt required.

  • iand on 21/03/2025 - 23:59

    Jolion for sale in 2021 for $25990 was the Lux the one your friend just bought is probably the base model the current Lux is now rrp $29990

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