high mileage car and value

[manager]

lets say you're in the market for a brand new car. you'll be using it a lot and will hit 100,000km on it in 5 years. you'll maintain it as per manufacturer's schedule at casa and/or at outside shops after warranty. will just keep it stock.

which is better:

1. get vehicle from more reputable brand [honda, toyota, etc] so it will keep resale value better?

2. get vehicle from less reputable brand [hyundai, kia, etc] and save upfront because with that mileage it won't make a difference after 100,000km/5 years?

thoughts please.

[typhoon]

If resale value is your concern, I'd say go with the more popular brands. Kung pareho sila 100k mileage after 5 years, given the choice, mas mapepresyuhan mo ng maganda yung honda, toyota, etc. Of course, if you need the extra money NOW that you can save if you buy the hyundai or kia brand, sa korean brands ka na. But if there's no urgent need for extra money, maybe the thought that you can earn extra after 5 years when you sell a more popular brand will be preferrable.

[niky]

The resale value of the more popular car might be balanced out by the higher initial price.

Besides, after five years and 100,000 kilometers, most cars will be worth less than 50% of original value. What's a difference of 50-100k then if the car was originally worth 50-100k less? The more you use the car, the less the actual difference in final resale will be.

What cars are we talking about? If you're considering a supermini or subcompact (like Getz versus Vios or Jazz), go ahead and get a Korean. You'll lose maybe 10% more in depreciation, but running costs are very low, and the asking price is so much lower, it won't hurt anyway.

[OTEP]

Just get the one you like the best because you'll be spending a lot of time in it.

It'll cost pretty much the same after 5 years and that kind of mileage. Niky is correct.

[kmo]

just go with the reputable brands nalang ... and tama rin e if your planning to go that far in a car might as well dun na sa medyo gusto m at maganda ... plus consider din if by 100,000 km, yung car ba aabot that far? there goes the reliability issues ...

[redorange]

What Niky said is correct. If you spend 200-300K more with the Toyota and Honda on initial purchase then wouldn't it make sense that it would cost more when it's time to sell after 5 years. You wouldn't be able to sell it for 200-300K more when you sell the vehicle but maybe 50% of that price difference would still apply which is 100-150K. Assuming that is the case and you invest that 200-300K price difference instead your return would probably be better than the 100-150K you make extra after 5 years. Does it make sense?

[niky]

100,000 kms, if you take care of the car, is chicken feed. We had the 626 up to 160,000 kms before we ditched it (no repair budget, and my brother isn't the best at car maintenance).

Our Crosswind is up to 97,000 kms in two and a quarter years. Only unexpected repair (besides the exhaust issue, which is unique to the Crosswind) is a clutch replacement at 50-60,000, due to traffic use.

We put 80,000 kms plus on the Sentra (two and a half years) before we sold it. Would've been okay if it hadn't been flooded.

Have 55,000 on the Lynx in two and a half years. No major problems so far except I might need sensor cleaning (dusty roads around here).

I sometimes think I should apply as an endurance/reliability tester for manufacturers. On a good year, we can put over 100,000 kms on just one vehicle. We do the 5,000 km PMS every two weeks, sometimes.

It's accidents and misuse more than mileage per se that will wear down a car badly. You can run any modern car for at least 150-200,000 kms. without any trouble. Most problems I've seen are more age related than mileage related, because plastics and rubber degrade over time. Basically:

old, high mileage < old, low mileage < new, high mileage < new, low mileage

Of course, at 100,000 kms, many people will not pay good money for a secondhand, no matter what the brand.

[manager]

What cars are we talking about? If you're considering a supermini or subcompact (like Getz versus Vios or Jazz), go ahead and get a Korean. You'll lose maybe 10% more in depreciation, but running costs are very low, and the asking price is so much lower, it won't hurt anyway.

niky,
am deciding between cute utes, specifically CRV and Tucson. both 4x2 gasoline fed.

may i ask how you rack up so much mileage on your cars??!! i thought mine was bad already

great responses guys! keep em coming

[userfriendly]

If you are going to rack up the miles, I would suggest you look at a fuel efficent ride, better yet get a CRDI diesel. This way you save every time you fill up.

Don't know about the Tuscon but the CRV (2nd generation) is a gas guzzler.

[niky]

RE: miles... I live in Laguna. My girlfriend of nine years... now my wife... lived in Quezon City. 80-90 kms round trip. My mom, who I used to chauffer, goes to Manila for meetings... sometimes three times a day... 120-200 kms. Our school in Pangasinan - 480 kms r.t., our school in Isabela - 1000 kms r.t.... depressing, huh... :hysterical:

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Tucson versus CR-V (sorry, this'll be long)

Hyundai's cars have low resale values, but if you're getting the CRDi Tucson, the diesel engine will mitigate this.

Based on market data, the CRV will have a resale value of 400k - 500k in five years. Say, 400k only, in your case, for a 100,000 km vehicle. That's about 40% of an original 1m for the base model MT (no ABS/Airbags)

There's not enough data on the Tucson, so I'll base my assumptions on the Starex. Provided that the Tucson's CRDi doesn't prove troublesome down the road, expect the resale value of the 2WD CRDi to be 400k in five years, too, down from 1.08m. Also around 40%

I don't expect big problems to occur with the engine, as Hyundai's injector supplier is supposed to be better than Toyota's and Isuzu's. But if the build quality turns out to be lacking, worst case scenario would put it at 300k worth in resale. If the Tucson proves durable, maybe 450k, because it's a diesel, and diesels hold value well.

Assuming Tucson city mileage at 10 km/l, and CRV city mileage at 6.5 (since this is the manual transmission model), and pegging fuel prices at 33 for diesel and 38 for gas (not accurate, but prices will change anyway), your fuel for 100,000 kms will be 585k for the CRV and 330k for the Tucson... a 255k savings in terms of gas money.

Thus, even if you lose an extra 150k in final resale value (worst case scenario), you still come out 100k ahead in terms of fuel usage. This is considering all other costs remain the same. And if resale value stays average (as happens to Hyundai's diesel Starex), then you come out 240 - 250k ahead in terms of fuel savings.