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Tuesday, September 07, 2010

WORST RESALE VALUE CARS

In Malaysia, typical bad resale value car have the following characteristics which are divided in 3 categories (in my book):

1) Most cars with Petrol 2.5L engine capacity and above (EXCEPT Mercedes Benz C-class and E-class). Why? EXPENSIVE Road tax, High fuel consumption fear. Also, for BIG car such as BMW 7-series, there's NO DEMAND for used ones as MOST of 7-series owners are RICH, hence few will BUY USED units.

2) LOOKS of the Car. Eg. POORLY Designed car such as Proton Juara. Few would buy a 4+2 seats (the 3rd row of seats are for KIDS as it is small, has minimal paddings and poor legroom. The car's like BRICK on wheels. Rear lights are placed VERY LOW and at the Bumper. Not practical. Engine's too small at 1.1L and underpowered... Another WIERD looking car's FIAT MULTIPLA. Another poor resale value car as it has NO Automatic gearbox and to many "WORLD's UGLIEST CAR". This is NOT my word, it's VOTED by many European and Malaysian (TORQUE MAGAZINE) Publications...

3) HUGE Discounts... How do you feel if you bought a newly launched car at RM165,000 in 2000 and the car's priced RM20,000 cheaper in 15 months time. PISSED right? Adding salt to the wounds, in 2003, the car had FURTHER Discounts of RM20,000 which makes it RM125,000.  Wait, I haven't finish, in LATE 2003, the car's renamed as a NAZA and another RM27,000 cheaper.  The result?
Resale Value badly affected. Which car is this? KIA Carnival/Naza Ria!

4) Image/Perception of the car brand. Malaysian tends to stereotype certain car brands. Eg. Alfa Romeo known for Overheating problems, Fiat is known as "FIX IT AGAIN TOMORROW", Citroen = Sit-tou-long (means rugi sampai habis), and Volvo = drinks petrol. FORD = FIX OR REPAIR DAILY, To them, most continential cars (Except Mercedes Benz) = high maintenence and spare parts costs. Own cars like Saab or Skoda typical Malaysian would question your taste or give bad comments...


I've compiled 25 worst resale value cars. BUT I'll only list out the top 10 which were very CHRONIC/SEVERE/TERUK Cases. The rest of the cars were pretty close and depreciated FAST but spread out in the span of 3 to 5 years... BUT these 10 LOST A HUGE Chunk of their VALUES at the 1st year itself... Here are the lists:

1) PROTON JUARA. 50% Retained value within 1 year!
2) Chery Alado 1.6 57% retained value in 1 year!
3) Chery Tiggo 60% retained value in 1 year!
4) Kia Spectra. 65% retained value in 1 year!
4) Berjaya Changan  CV6 1.3 Hatchback 65% retained value in 1 year
4) Berjaya Changan CM8 MPV 65% retained value in 1 year
7) KIA Carnival/NAZA RIA. 70% retained in 1 year.
7) Chery Eastar
8) NAZA SUTERA/FORZA 70% retained value in 1 year.
9) Mercedes S-class (S420 to S500L):  70% retained value in 1 year (SHOCKING BUT TRUE eg. S500L, new RM1,000,000.  1 year later: RM700,000).
10) BMW 7 series (730i and to 760LI).  ALSO 70% retained value in 1 year.  Eg. 730Li  New 680,000.  1 year later RM450,000.

FOR the 2 LUXURY cars at NO 10.  It's due to the PROHIBITIVE ROAD TAX Structure in our Boleh Land (Malaysia).  S500L roadtax is WHOOPING RM14,000 P.A.  (Doubled for Company registration = RM28,000 P.A.  Therefore, NO 2nd hand value.  SHOCKING but true.


As a comparison, see my previous topic: "Best resale value vehicles". The top 10 best resale value cars retained their value from 74% (Mitsubishi Lancer GT) to 83% (Mini Cooper) IN 3 YEARS!!! The 10 cars above RETAINED 50% to 75% of their resale value IN ONE YEAR!!! Again CHRONIC/SEVERE/"TERUK"/SAD Cases...

NOTE (17/1/07): These are "Volume sellers" (ie. "quite good selling" and easily available in the used market). There were brands like Fiats, Opels and Saabs and certain models such as Citroen C5, Alfa 166, Peugeot 607 which Resale value EQUALS or WORSE than the cars above, but they were RARELY AVAILABLE in the used market AND if you found one, the price will be DETERMINED by buyers itself (ie. No FIXED Value). (END OF NOTE)


Now will I fear of getting sued BY Berjaya Changan, Chery AND NAZA KIA? NO! I'm just reporting the facts based on my calculations. The Kias BELONGS to Category #3. It's caused by HUGE DISCOUNTS by NAZA-KIA itself. I pity those 1st batch Kia Optima buyers! They had to pay RM130,000, only to found that the SAME CAR costs RM27,000(!!!) LESS within 15 months!!!

ANOTHER Example is 1st batch Kia Carnival owners.  They bought their car for RM165000.  After 3 years same model with better specs (but renamed as NAZA RIA) selling for RM98,000. 

That's all folks, thanks for having the time and patience to read this blog entry.  An original Jeff Lim's production.  My original work.

2 comments:

Anonymous said...

Hey man thats a nice review. Anw was just wondering if you could help me out here. I'm planning to buy either the new Kia Optima 2011/12 or the Peugeot 508 2011/12. So i would appreciate if you could give your view and take on which car would have a better second hand value. Thanks man. Hope you e-mail me to my email : inzp992@ymail.com

Anonymous said...

Hi Man,

how do you think about Kia Forte?
Do Kia forte have resale value for the coming 5-6 years?

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