Is resale value really that important?

[MAXBUWAYA]

personally for me Korean Cars have earned my respect. (Except daewoo aka Chevy and some koreans doing business here hehehehe)


From stories here and some people i know who has korean cars, their happy with it lalo na sa aftersale service

Korean car aftersale service are better with toyota and honda if I compare my experience with them.

[swordsman]

Important kasi if you don't wanna keep your car for a long long time. Majority ng mga potential buyers mo, mga misinformed about the much improved quality of today's non-japanese brands (i.e. Kia & Hyundai).

[mike01]

may reason naman kung bakit mataas ang resale value ng isang item (not just car), a reason for this is demand due to availability of cheap "durable, long lasting" parts, and easy repairs..

syempre kung 2nd hand yan expected na may sira yan...so sino ang bibili nyan kung walang available parts at mahirap ayusin di ba?

its a law of supply and demand.. as for me lang kahit na siguro wala akong balak ibenta ang kotse na bibilhin ko ng brand new, mas pipiliin ko pa din yung mataas ang resale value.. e kase mas matagal ko itong magagamit.. kahit na abutin ng 20 years nasa akin pa din.. since madami syang parts at madali ang repair..

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pero in terms sa kia pride.. yes ok din naman ang kia pride.. although the only problem is madali masira yung mga shocks at pang ilalim nya.. so in essence mura at marami ang parts nya pero frequent repair naman.. so dun ka na sa matibay tibay na parts.. in the long run mas nakatipid ka..

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as for me .. wala akong kotse, pera na experience ko yan sa cellphone.. nung masira yung sony ericsson ko di ko mapa repair, till naging paperweight na sya.... pero yung nokia kahit kupas na madaling ayusin at palitan ang cover.. mukhang bago uli.. so kaya naman mahal ang resale ng nokia..

[mike01]

if you look at it. yung mga brand new korean cars like getz and picanto are not really cheap ha.. they are sold at almost the same price as a brand new vios.. tapos anliit pa..

what do they think about themselves? toyota? before sana sila mag presyo ng ganun kataas sa mga brand new car nila e they should try to win the consumers muna, like toyota.. e halos di pa nila mapantayan ang dami ng toyota cars sa kalsada nagtaas agad sila ng presyo..

so in essence, and in short, korean cars does not have low resale value.. its just that their brand new selling price is way TOOOO OVERPRICED..

a picanto or getz should not sell more than 390k.. si pa sila accepted ng karamihan (like toyota) nagtaas agad sila

[Horsepower]

It's a marketing technique i think plus the high taxes here.

Masyado mahal talaga dito Korean cars.

But we're ok with it. we spent more than 1.5M on the SantaFe, we're thinking of spending 2.7+M on the Veracruz, and around 1.5M+ for KIA Sorento CRDi VGT. hehehehehe. Resale value is the least of our priorities. What matters is how the car performs while it's with us.

Taas ng ng resale value, para ka namang nakasakay sa vibrator everytime ginagamit mo e for me, wag na lang. I care a LOT for comfort.

Yung Toyota, kaya marami syang parts is because favorite sya ng carnappers at sobrang dali nyang nakawin. That's a good and a bad thing. Good because pag may nasira sa toyota mo, madali kang makakakuha ng parts, yun nga lang, very high chances na nakaw yon, which is bad.

Koreans are often equipped with deadlocks and immobilizers. something that's standard with most German cars. Eh sa jap? usually it's not even an option, kung meron man sa mga very high end models na.

[mike01]

base it here. reliability survey..

http://www.jdpower.com/corporate/new...asp?ID=2006133


on the charts.. kia and hyundai are way below the industry average..

honda and toyota up there on top (toyota number 5)

so to buy a 500k kia picanto as against a 530k vios.. i guess the decision is all clear.. mayaman at mapera ka pag bumili ka ng kia picanto..


that is why korean cars have low resale value..

[coiter]

[QUOTE=mike01;808913]so to buy a 500k kia picanto as against a 530k vios.. [QUOTE]

hehe sorry can't help to comment but you compared the top of the line picanto vs the bare bones vios. kung bare vs bare its around 420k vs 530k. 110k is big if you're on a real tight budget. kung top vs top almost 200k difference. kung top vs bare mas madami sigurado amenities ng former for still a cheaper price. similarly, cheaper pa rin ang tucson sa crv or rav4.

had a similar dilemma before. i had to choose between the base model 'high-resale value' brand and the top of the line 'not too popular' jap brand for the same price. i chose the latter. and i never regretted it.

anyway, kanya kanya lang namang priorities e. peace! =D

[oldblue]

honda and toyota up there on top (toyota number 5)

so to buy a 500k kia picanto as against a 530k vios.. i guess the decision is all clear.. mayaman at mapera ka pag bumili ka ng kia picanto..


that is why korean cars have low resale value..

yes I have to agree with this. those of us who buy kia/hyundai probably dont care about resale value. we are like rich people who take big risks.

but we care more 'bout the savings while using the korean car.

1. low profile sya sa kalsada. less expenses on locking mechanisms (imagine a spare tire lock worth 3k sa goon squad). less ang chances ma-carjack, matutukan. peace of mind ika sa caltex commercial, priceless.

2. cheaper spare parts and accessories: "we can always argue sa banawe, ano ka ba naman hindi naman toyota/honda tsikot namin, hyundai lang 'to, bigyan mo pa ng discount? that explains why my discount nakuha ng driver namin yun plate covers, and floor mats and backup sensor

3. negotiable ang insurance. eto ang da'best. would you believe our Starex has only less than 30k annual insurance. ngaun civic ata ganyan na eh

4. we are treated like VIP royalty sa CASA. kasi korean dealers are more aggressive than the jap dealers. importante kami sa kanila, walang ere sa katawan.

so is resale value impt? probably pero low acquisition din naman kami so ok lang magbaba ng resale.

dual airbags, abs dont count pag nagbebenta ka na whether it's jap or korean. crv's and rav4's are 200-400T more expensive than korean suv's just because they have additional airbag and ABS.

yan ang do the math. i'm sure pag binenta ang model 06 tucson vs. 06 crv, 100k difference lang yan.

[cardo]

i think we need to think like car insurers, banks and the dealers(who accept trade in for cars) on how they evaluate and compute for depreciation and present value of a car in relation to time and usage...

[mike01]

parang mali ata yung reason na kaya ako bumili ng ganyang kotse kase di sya ninakaw dahil walang may gusto.. e di wala ding may gustong bumili pag ibenta mo??

di ba kaya nga may insurance?
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lets keep in mind that a car that we buy is not really ours.. parang inarkila lang natin yan.. pero nagdeposit tayo ng pera, which after we use the car pwede na din natin ilipat sa iba at makuha natin yung deposit na pera natin..

so in essence ASSET yan..it goes to our asset column..

di mo masabi na forever mo magagamit yang kotse na nabili mo.. pano kung nalipat ka ng trabaho sa ibang bansa o sa malayong probinsya? o nangailangan ka ng pera? so dyan papasok yung resale value nung kotse.. para makuha mo uli yung pera na na deposit mo..

[niky]

That's a 460k Kia against a 550k Toyota. The 500k Kia is AT... which isn't available on the lower end Vios anymore.

Korean cars have a low resale value based on previous experience with older Korean models, which were, truthfully, pretty woeful. The JDPowers survey is based on reviews of cars made in 2003, though... not 2006... so any reliability change from new vehicles and improvements won't show up on the long term survey till 2010.

Also, JDPowers rates problems based on survey results, not actual jobs performed. These surveys are, at best, subjective, and are fraught with problems. Thus, they serve as a general guide... 136 problems per 100 vehicles can mean either 136 gas tanks falling out or 136 stuck windows. Do they actually tell you which it is?

The difference in that survey between the winners and the Koreans is about 2 problems per car over three years. Non-specific. This includes stuck windows, drained batteries, busted shocks, etcetera. It could even go as far as "harsh ride" = 1 problem.

That's why German luxury cars often land low on the survey... they have so many electronic toys that one or two of them are bound to go haywire. "Can't use I-Drive because I can't understand it..." = 1 problem

Note JDPowers' homepage... their Top 5 Midsize cars in terms of reliability (this is long term, for secondhand cars...) has the Toyota Camry at #4... surrounded by American cars... the types usually found in low-spec for fleet sales... less kit... less to break.

Also, JDPowers is a mail-in survey, and from what I've heard, it's a hellishly long and complicated one. Most people who go to all that trouble to write about their cars have a bone to pick, thus, many of the respondents are likely to have had problems and want to vent out their frustration.

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Thus, there is some truth and some untruth in JDPowers. But from what the surveys show, the difference between the best and the worst isn't that terribly big.

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I pointed out a more accurate way of gauging vehicle reliability here:
http://tsikot.yehey.com/forums/showthread.php?t=34711

While it's also flawed, Warranty Direct's coverage of 450,000 vehicles is more comprehensive than JDPower's 47,000 partial respondents... and it covers cars from 3 to 9 years of age. Furthermore, it tracks mechanical failures covered by warranty (thus, not ostensibly due to wear-and-tear or user-bias). Kia placed fifth.

And take note... 3 to 9 years. This includes the years that Hyundai sold cars with the crappy first generation all-Korean engines... not the more modern plants they use now.

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Of course, Land Rover placed last in both studies. Kinda depressing for them, huh? :hysterical:

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Regarding resale values... the Picanto started at 325k. You can get a first year Picanto for 350k. That's 100%+ resale... pretty good, right? :hysterical:

Kias and Hyundais are high-priced because they're all CBU. Many Japanese manufacturers (including Toyota) enjoy tax breaks on their lower-priced vehicles due to local assembly. That Kia and Hyundai are competitive in price (and in some cases, cheaper) spec-for-spec indicates how hungry they are for market share.

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Resale value isn't entirely logical. It's based on perceived value, prejudice, bias, real-world reliability issues, perceived reliability issues, fuel economy and fuel bias (diesel Koreans have excellent resale value, by the way... just because they're diesel).

I don't normally buy cars on resale value alone. If I did, I'd be buying L300s. Resale value of cars with safety equipment, a full-load of toys and nice seats isn't as good as the resale value of the base models of the same car. My sweet-driving and sweet-riding sedan will never get me as much secondhand value as my AUV (which is why it's the AUV we're selling). In the end, you choose to pay what you pay for your vehicle just for the privelege of actually using it.

What was said previously, about it being ridiculous to not use a car to keep its resale value up is kind of where I'm at. Why bother to buy a brand new car, use it only once a week for two years, and lose over a quarter million pesos in resale on it, anyway? That's not an investment or an asset, that's just a waste of money. You lose three thousand pesos for each day of driving. If that's the way people like to go, it makes more sense to buy a secondhand Jeepney and put the rest of the money in a time-deposit account... that's a smarter choice than buying a Toyota or a Hyundai.

EDIT: We're in the process of getting a new SUV. We're leaning towards the Hyundai Santa Fe. Why? While the possibility (possibility only... so far, Santa Fes seem to hold their value terribly well) of losing an extra 100,000 pesos in resale value versus a Fortuner 3.0 is daunting, I think that paying an extra 1 peso per kilometer (we often do 100,000 kms within two to three years) is worth the better ride, better fuel efficiency, and the general niceness of the car. Why don't we get something cheaper? Well... that's our problem...

[mike01]

kung ang price ng kia picanto stayed at 350k.. pwede pa.. thats sensible..pero at the current price.. much better vios ka na lang.. a 5 year old vios still retains 80% of its brand new price.. compute your usage per year.. its like paying only 30k per year , or like 2500 a month for usage....

actually ako din naman gusto ko din ng small cheap cars, ang balak ko nga suzuki alto, pero after thinking and researching.. although 360k lang ang brand new ng suzuki alto.. they say after just 3 years when warranty is over, very few will probably want to buy it from you.. so you might have to sell it at a price of 110k or less..(same price as a good condition 15 yo corolla) ..

so when i tried computing it

alto usage per month = 7000 pesos
vios usage per month = 2500 pesos

anlaki ng mawawala sa pera ko.. so medyo deceiving yung initial price ha..

[mike01]

take a look at businesses and corporations who depend on cars for their business (taxi's, driving schools etc)..

do they use kia's or hyundai's?


even taxi drivers i asked do not recommend kia's .. i expect a different answer but they really don't trust kia's or any korean cars.. i always get that same answer..

even an officemate of mine who owns a talyer told me "wag ka bibili ng kia, parang tinapon mo lang pera mo" .. well kia have improved.. but still a long way from toyota.. they still need to sell cheap to match toyota..

[Jun aka Pekto]

lets keep in mind that a car that we buy is not really ours..

Hmmm. Interesting line of thought.

But, I disagree. I paid off our 1995 Ford Contour back in 1999 which I was paying for $400/mo.

At $400/month starting with Jan 2000 up to the present.... That's 89 months multiplied by 400 = $35,600.00 in car payments I didn't have to make plus I have a vehicle to show for it. Add the lower insurance and yearly registration rates. It's mine, it's real, and it's saving me money still. Sure, I've had to pay some maintenance. But, it's still much less than (at least) $400/month if I have a new car to pay for in its place.

If it was a clunker, I would've gotten rid of it like I did with our 1997 Dodge van which we replaced with our 06 Sonata.

[niky]

The Vios's resale value depends on whether there's a new Vios or not within 5 years. The Vios and Altis have maintaned good secondhand prices because the models are still current. Older Toyotas have started to depreciate normally since the new models came out.

And 80% over 5 years? That's ridiculous. People might ask that, but how many people are dumb enough to buy at those prices? Especially if you can get a brand new Vios for just 100k worth of monthlies more? And here I thought that paying 60% for a three year old Altis (the going rate last year) was crazy.

That Alto resale value is not predictive. Take the Daewoo Matiz. Resale values are still pretty high because it's small and fuel-efficient. The Kia Pride's resale value is still a good percentage of its new value, despite the genral crappiness ( ). And, says who? People who won't buy it? What matters is what people who would buy it are willing to pay.

People will pay good money, secondhand, for a car that's fuel efficient or perceived as fuel efficient. If the idea that people will not buy a car from a minor brand from you at all unless you drop the price to the basement were true, then people would not be buying secondhand Daihatsu Charades.

Microcars hold their value well compared to compacts due to fuel economy. The Alto should hold value well. But if it doesn't, then use the heck out of it.

You should calculate usage cost on a realistic idea of the median or baseline resale value of the vehicle along with the cost of spares and consumables (including gasoline) over the projected lifetime of the vehicle. And, if you're not buying cash out, the accrued cost of interest the Vios will garner you over a three to five year period.

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Some new taxi services are starting to use Kias and Hyundais. The more forward-thinking are buying Hyundai CRDis for their taxi fleets... juggling fuel savings against higher acquisition cost.

Taxis? Kia Prides? I met a taxi fleet operator who'd switched from Corollas to prides. With the amount of wear and tear taxis get, he said he was paying a lot for repairs, anyway (on the Corollas)... whereas the ability to field three Prides for the cost of one Corolla, as well as the fuel savings and cheap cost of parts, meant that he could still field at least two Prides while one was being fixed as compared to having nothing every time the Corolla was in shop.

[CVT]

I own a Hyundai van, a Nissan van (and a Honda car)....
What more can I say.....

2601:kick:

[mbeige]

Buy a soon to be classic Ferrari, Porsche, Pantera, etc (whichever sports car you fancy).

Restore it, dump money on it, drive it on weekends.

Keep it for so many years. Enjoy it.

Should you decide, sell it once its value has appraised due to its classic status. Then with the money you've earned, buy a different sports car but in much better shape, and keep it for good. Spend the rest of your money on another sports car

[CVT]

lets keep in mind that a car that we buy is not really ours.. ..

Parang Patek Phillipe ad ito, but with a twist....

2601:kick:

[mike01]

vios is also fuel efficient.. in fact more fuel efficient than the picanto..

and who knows what might come up next.. toyota might have more fuel efficient engine replacement on old vios models.. they have the prius.. and that's where toyota is good at.. parang lego, salpak lang ng salpak ng iba't ibang klaseng makina.. how about a prius engine replacement on a vios?

kaya nga to have peace of mind..trust the large corporations who depend on cars for the life and success of their business.. large taxi corporations like E&E, R&E, MGE, driving school like A1,socialite, etc..

when i see alto taxis running on the road, i would probably choose that.. otherwise its better to be safe.. that is our hard earned money..

[laracroft]

hmmmm.

don't know why, but this discussion
reminds me of a time when someone
was kicked out of the picanto forums
for flaming, actually torching, the
forum. hehehe.