407 is D segment then 508 is E segment lar ! 

I'm a bit bias to woengx2 statement that if buying the car by cash the calculation is going to be different. For me, personally I'm choose to buy car by cash as well if my cashflow is not so tight. 

Isnt the 407 a D segment? Well, why dont u provide the calculations then?

407 is D segment then 508 is E segment lar ! 

y when ppl question the statement and u end up calling ppl calculate then? y cant u accept something even when u know it's wrong? some ppl just don have the knowledge like u to come out with those graph...

back to the topic, it's just a myth...i choose camry even if it's more expensive....coz chinamen mentality mar.....

in this case, preve win lor... eventhough the resale value is lot lower, but the price already low  at the first place

Feedback?
http://forum.lowyat.net/topic/2728213

using your argument,

407 's higher total lost of $9,454 can actually be smaller due to 9.5k  5 years later is actually not worth the 9.5k of TODAY, in real calculation, it 'll be may be 9k only or even lesser depends on inflation rate

407 has LOWER start-up cost
$15,499 (camry) - $13,688 (407) = $1,811 since this is calculated in present day value, so this part is ok

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

again this need to factor in the yearly cost of fund, so the value of 18.7 k could be higher slightly and may well be over RM20k (of Today cash )

So conclusion is taking Pug 407 is better since

20+1.8 -9 = 12.8k

Money wise it looks right (as long as the maintenance cost is the same, but if they are not and IF Pug costing more than Toyota tallo maintain and repair, than the difference will be smaller, nevetheless 12.8k is a very good buffer.

Overall, nice piece of work there

y when ppl question the statement and u end up calling ppl calculate then? y cant u accept something even when u know it's wrong? some ppl just don have the knowledge like u to come out with those graph...

back to the topic, it's just a myth...i choose camry even if it's more expensive....coz chinamen mentality mar.....

By the way, I think the original post/calculation was made by me, in a Mazda6 thread. I was just trying make a simple illustration on how poor resale vale can be offset by lower purchase price, from a financial point of view. There were a few assumptions though e.g. comparison should be cars of the same segment (in the example, both are d-segments), should be of same age, no change in new price (e.g. change in tax structure, etc.) bla bla... I was doing it out of boredom as I like playing with numbers.

By the way, I think the original post/calculation was made by me, in a Mazda6 thread. I was just trying make a simple illustration on how poor resale vale can be offset by lower purchase price, from a financial point of view. There were a few assumptions though e.g. comparison should be cars of the same segment (in the example, both are d-segments), should be of same age, no change in new price (e.g. change in tax structure, etc.) bla bla... I was doing it out of boredom as I like playing with numbers.

Excellent.
Please allow me to illustrate, based on your figure examples and using some crude calculations.

Peugeot 407 Premium 2.0L
Purchase price (2008) = $136888
Downpayment = $13688 (10%)
Interest rate = 3%
Tenure = 60 months (5 years)
Monthly loan payment = $2361
Total loan paid  = $2361 x 60 = $141679
Total paid for car = $141679 (loan) + $13688 (dp)= $155367
Resell car 2013 (after 5 years) for $74k (45% loss)
Total loss (after 5 years) = $74000 (what you get) - $155367 (what you paid for) = -$81367

Toyota Camry 2.0L
Purchase price (2008) = $154990
Downpayment = $15499
Interest rate = 3%
Tenure = 60 months (5 years)
Monthly payment = $2673
Total loan paid = $2673 x 60 = $160414
Total paid for car = $160414 + $15499 = $175913
Resell car 2013 (after 5 years) for $94k (39% loss)
Total loss (after 5 years) = $94000 (what you get) - $175913 (what you paid for) = -$76408

For simplicity, let's assume service/maintainance costs, FC, intangible costs are equal or negligible.
Thus, after 5 years, 407 vs, camry:

407 have HIGHER total lost (bad)
$76408 (camry) -  $81367 (407) = -$4959 difference

407 have LOWER start-up cost (good)
$15499 (camry) - $13688 (407) = $1811 difference

407 have HIGHER monthly cash flow (good)
$2673 (camry) - $2361 (407) =  $312 difference

So i guess we can safely say 407 trades-off (poorer) total loss for better cash flow & lower start-up cost.
Or to put in perspective, buying cars with lower resale value can be justified by lower purchase price.
Whether the amount is significant or not will depend on individuals needs and actual purchase price & resale value.

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?