Why is it buying used car is better in terms of resale value? Any good example?

Put simply, you lose less.

Eg get a used kelisa 5 years ago at rm20k, today you sell for rm13k. You only suffer rm7k depreciation then.

Compared to the first owner, let's say he bought that kelisa rm40k, sell you rm20k, so he suffered rm20k depreciation.

Another way of looking at it is, the 10k that will be saved 5 years later actually is less than the value of current 10k after considering the time value of money. So, one can decide whether he wants to save that amount of money or otherwise, your money, your choice.

This is what we have been talking about, but TS cant agree. He will tell you although Camry's loss is lesser, you pay more as down payment & installments.

Now see this TS. Assuming discount rate at 3% for simplicity of computation.

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Anyway, I always wondered who'd seriously buy a second hand Vios? The RV is friggin strong, even 2003 ones still going circa rm40k+-. For a super kosong car? It's not even prestigious, it's just telling people "I can't afford a brand new, but I am Toyota fanboy". Kesian them like kesian macai bn.

I'd rather get a Volvo V40 for that money. Comfortable, powerful, safe and far more practical car. And beautiful too

Yup when i sold my 2003 Vios 1.5E last year, even i was surprised at its resale value. And the car was sold to a buyer within 1 month for about 43K. Imagine paying 43K for a 9.5 yr old car that has specs that rival maybe a Kelisa. 

This is why buying used cars make a lot of sense. You lose less..

Indeed. At 3% discount rate, it's reduced to rm7k++, as calculated by LenovoT.
~~~

Anyway, I always wondered who'd seriously buy a second hand Vios? The RV is friggin strong, even 2003 ones still going circa rm40k+-. For a super kosong car? It's not even prestigious, it's just telling people "I can't afford a brand new, but I am Toyota fanboy". Kesian them like kesian macai bn.

I'd rather get a Volvo V40 for that money. Comfortable, powerful, safe and far more practical car. And beautiful too

Nope. If u buy  2nd hand car which needs alot of repairs, u will end up spending more. And btw, when u repair ur car u need to pay cold hard cash. Whereas when u buy new, u can put everything into the loan. So new is always better than old unless u buy from a trusted fren and u knoe the cars history. If not, go for new

Nope. If u buy  2nd hand car which needs alot of repairs, u will end up spending more. And btw, when u repair ur car u need to pay cold hard cash. Whereas when u buy new, u can put everything into the loan. So new is always better than old unless u buy from a trusted fren and u knoe the cars history. If not, go for new

Nope. If u buy  2nd hand car which needs alot of repairs, u will end up spending more. And btw, when u repair ur car u need to pay cold hard cash. Whereas when u buy new, u can put everything into the loan. So new is always better than old unless u buy from a trusted fren and u knoe the cars history. If not, go for new

U noe volvo maintainence how high? Unless u hv deep pockets better not try

Mind sharing what's killer about maintaining Volvo? Particularly V40 wagon, 2.0T? You've owned any before?

Of course I am realistic enough to know its fc is not as good as kancil, nor its spare parts as cheap as proton. Duh

of course it isnt kancil proton cheap
and of course i do not own a volvo

and of course we all dont need to own one to tell, that isnt cheap to run one.
so how about a few hundred bucks for side mirrors? and i am not talking about 100 or 200RM.
and normal servicing, and we are talking about maybe, 10k interval mind u, cost a few hundreds as well. and i am not talking about 500-600.
perhaps they dont really a KILLER like what u expect. maybe u gonna say, those bucks saved from tin milo vios wud become handy.
or maybe u would say, dont service at volvo u fren mechanic can do this that

well good for ya. yes it is one hell of beauty. the wagon is just awesome.
dont trust me, monsieur. just google it. or ask around. or do whatever u want.
ps- u asked who bought second hand vios? my oh my. u should have ask who bought it new in the first place. yes. that tin milo kosong vios.

This calculation was shared by a LYN forumer some time back which ive tweaked to suit.

Very often, we always focus on the resale value of a particular model while ignoring the start up costs and monthly loan repayment costs. This tabulation will show you why cars with lower resale value may actually be a cheaper. This is of course assuming maintenance costs are similar.

Peugeot 407 Premium 2.0L

Purchase price (2008) = $136,888
Downpayment = $13,688 (10%)
Interest rate = 3%
Tenure = 60 months (5 years)
Monthly loan payment = $2,361
Total loan paid = $2361 x 60 = $141679
Total paid for car = $141679 (loan) + $13688 (dp)= $155,367
Resell car 2013 (after 5 years) for $70k (49% loss)
Total loss (after 5 years) = $155,367 (what you paid for) - $70,000 (what you get) = $85,367
Toyota Camry 2.0L

Purchase price (2008) = $154,990
Downpayment = $15,499
Interest rate = 3%
Tenure = 60 months (5 years)
Monthly payment = $2,673
Total loan paid = $2,673 x 60 = $160,414
Total paid for car = $160,414 + $15,499 = $175,913
Resell car 2013 (after 5 years) for $100k (35% loss)
Total loss (after 5 years) = $175913 (what you paid for) - $100,000 (what you get) = $75,913

For simplicity, let's assume service/maintenance costs are equal. Thus, after 5 years, a Peugeot 407 vs Toyota Camry:

407 has HIGHER total loss
$85,367 (407) - $75,913 (Camry) = $9,454

407 has LOWER start-up cost
$15,499 (camry) - $13,688 (407) = $1,811

407 has HIGHER monthly positive cash flow through lower installments
$2,673 (camry) - $2,361 (407) x 60 months = $ 18,720
SUMMARY

This clearly shows that although the Peugeot 407 has RM 9,454 lower trade in value after 5 years but it gains a total of RM 20,531 from lower start up costs and lower monthly loan installments.

Thus, buying cars with lower resale value isnt actually a poor financial decision. So i think with this, we should not allow resale values to govern our choice of vehicles. Safety, value for money, specifications and maintenance costs should take precedence.

What do you think?

Nice one cybermaster, LOL they don't get your meaning of the RM20 531.

What I need to know is when people say high maintenance cost, how high is high?

Proton also can be very expensive if you wanted to. Satria 1.3 throttle body was quoted RM3,000 from Proton parts glenmarie, Waja side mirror RM400. I've seen Waja R3 front brake pad rm600++, siao aa?! Proton think they're ferrari aa can charge their parts with that kinda price?

Then from personal experience I kena ketuk by some tyre shops before. Waja door handle rm80, fuel pump rm650. Once, it overheat, the radiator kering cuz got some leak, rm600++. All which I partly blame myself, I could've avoided getting ketuk so much if I'm more diligent on maintaining the car. Still though, not the kinda bill one would expect for maintaining "just" a proton.

another conclusion is Camry is overpriced with inferior specs than 407.

So Toyota needs to buck up and lower your prices.

Don't keep blaming taxes or Japan HQ.

The usual advice applies... if you can get spare parts from Singapore, good. They are not so expensive usually, and you can get OEM ones. You can also make phone calls to find out the actual price, instead of hearsay.

The Volvo Malaysia website lists the servicing schedule including the prices. Personally I thought it was a bit high, but yeah, ymmv.