Buying New Or Second Hand

[gazza1]

Guys, hope you can help me.

I'm fed up with paying for a rental car (Honda Jazz) and now I have money to buy a new car. We have 2 dogs and the missus (farang) loves the Honda Jazz but we must also consider that we might have a family next year and I like the Suzuki Grand Vitara (new shape) or the Honda CRV (new shape). Question is:

If i were to buy a brand new Jazz what is the resale price if i were to resell in 12-15 months if we are lucky to have a family?

Or shall I just bite the bullet and buy the bigger Suzuki or Honda now?

The resale price will probably make my mind up if I should buy the smaller can now, brand new from a dealer with peace of mind or buy second hand.

What are you thoughts?

Thanks

[MoonRiverOasis]

For the Jazz, expect to lose anywhere from 20% to 30% depending on badge, condition, KMs and how fast you want to sell.

If you wait until the all-new Jazz comes out in 2013 before selling, expect another 10% loss.

New CR-V coming next year, so expect to lose ~30% in 12-15 months with it.

Suzuki 25% loss from day one, up to 40% loss by the time it's 12-15 months old.

Best cars for resale value vs cost are Toyota Vios base model Auto, and Honda City base model Auto. Yaris/Jazz lose more % than Vios/City, manual loses more % than auto, higher badges lose more % than lower badges.

[gazza1]

For the Jazz, expect to lose anywhere from 20% to 30% depending on badge, condition, KMs and how fast you want to sell.

If you wait until the all-new Jazz comes out in 2013 before selling, expect another 10% loss.

New CR-V coming next year, so expect to lose ~30% in 12-15 months with it.

Suzuki 25% loss from day one, up to 40% loss by the time it's 12-15 months old.

Best cars for resale value vs cost are Toyota Vios base model Auto, and Honda City base model Auto. Yaris/Jazz lose more % than Vios/City, manual loses more % than auto, higher badges lose more % than lower badges.

Thank you for your reply. Very informative.

The loss on the crv and grand vitara would not bother me as much because i would plan to keep those for a longer period.

The loss on the Jazz equates to the same amount i would pay if i continue to rent it for the next 12 months. Therefore i might as well continue to rent Jazz and buy the crv/grand vitara when the family starts...your thoughts??

In Thailand, which make of cars suffer from high import taxes? I refuse to pay a premium for these types of cars

Thanks once again.

[WarpSpeed]

By lucky to have a family do you mean a new baby ?? Or an entire extended family ?? If just a baby there is more then enough room in a Jazz for years to come, why the need for anything larger until it grows a bit eh??...

[MoonRiverOasis]

Thank you for your reply. Very informative.

The loss on the crv and grand vitara would not bother me as much because i would plan to keep those for a longer period.

The loss on the Jazz equates to the same amount i would pay if i continue to rent it for the next 12 months. Therefore i might as well continue to rent Jazz and buy the crv/grand vitara when the family starts...your thoughts??

In Thailand, which make of cars suffer from high import taxes? I refuse to pay a premium for these types of cars

Thanks once again.

If you've added in costs of ownership such as servicing, road tax, tire/brake replacement and insurance, then it'd be a tough decision. If you haven't added these in, renting wins IMHO.

All brands in TH have imported models, and some models have local assembly - making a list of all local or imported cars would be too big for this thread .

Don't know if you want my personal thoughts on the matter, because so far you haven't mentioned a model I'd buy, hehehe

Out of the cars mentioned so far, all except for the Vitara are locally assembled, but Vitara is import duty free under AFTA. Taxes on each still vary wildly though, given Thailand's odd tax structure - here's some information on the way cars are taxed here: http://www.thaivisa....ars-in-thailand

[Spoonman]

If you've added in costs of ownership such as servicing, road tax, tire/brake replacement and insurance, then it'd be a tough decision. If you haven't added these in, renting wins IMHO.

Very true, factoring in a few split tyres from pot holes per year (on top of a set of tyres per year) the monthly cost breakdown for my pickup runs to nearly 14,000b (fuel included).

[gazza1]

By lucky to have a family do you mean a new baby ?? Or an entire extended family ?? If just a baby there is more then enough room in a Jazz for years to come, why the need for anything larger until it grows a bit eh??...

got a couple of dogs too.....

[gazza1]

Thank you for your reply. Very informative.

The loss on the crv and grand vitara would not bother me as much because i would plan to keep those for a longer period.

The loss on the Jazz equates to the same amount i would pay if i continue to rent it for the next 12 months. Therefore i might as well continue to rent Jazz and buy the crv/grand vitara when the family starts...your thoughts??

In Thailand, which make of cars suffer from high import taxes? I refuse to pay a premium for these types of cars

Thanks once again.

If you've added in costs of ownership such as servicing, road tax, tire/brake replacement and insurance, then it'd be a tough decision. If you haven't added these in, renting wins IMHO.

All brands in TH have imported models, and some models have local assembly - making a list of all local or imported cars would be too big for this thread .

Don't know if you want my personal thoughts on the matter, because so far you haven't mentioned a model I'd buy, hehehe

Out of the cars mentioned so far, all except for the Vitara are locally assembled, but Vitara is import duty free under AFTA. Taxes on each still vary wildly though, given Thailand's odd tax structure - here's some information on the way cars are taxed here: http://www.thaivisa....ars-in-thailand

Spoonman and MRO thanks for your assistance. Ive always been of the belief that running a rental car does has its benefits for the reasons you both mentioned. But now the Jazz is costing THB20k per month to rent. Its crazy money. I know youre going to tell me i can get cheaper but i have peace of mind renting from a large company rather than some local who doesn't give a sh*t, if you know what i mean!

So in summary.....

- buying a jazz now only to buy a larger car next year is financially no sense (costs THB 240k to rent for 1 year = the same i will lose on depreciation).

- if im gonna buy might as well go for the big car now to cater for the 2 dogs i already have and hopefully the family next year

so, if i prefer the crv or the grand vitara, am i paying over the odds for either of these cars compared to their "real" price outside of thailand (what i mean is, for example, buying a mini out here is 3 times more expensive than in uk. is it the same for crv/vitara?).

cheers

[gazza1]

If you've added in costs of ownership such as servicing, road tax, tire/brake replacement and insurance, then it'd be a tough decision. If you haven't added these in, renting wins IMHO.

Very true, factoring in a few split tyres from pot holes per year (on top of a set of tyres per year) the monthly cost breakdown for my pickup runs to nearly 14,000b (fuel included).

Spoonman and MRO thanks for your assistance. Ive always been of the belief that running a rental car does has its benefits for the reasons you both mentioned. But now the Jazz is costing THB20k per month to rent. Its crazy money. I know youre going to tell me i can get cheaper but i have peace of mind renting from a large company rather than some local who doesn't give a sh*t, if you know what i mean!

So in summary.....

- buying a jazz now only to buy a larger car next year is financially no sense (costs THB 240k to rent for 1 year = the same i will lose on depreciation).

- if im gonna buy might as well go for the big car now to cater for the 2 dogs i already have and hopefully the family next year

so, if i prefer the crv or the grand vitara, am i paying over the odds for either of these cars compared to their "real" price outside of thailand (what i mean is, for example, buying a mini out here is 3 times more expensive than in uk. is it the same for crv/vitara?).

cheers

[mdechgan]

A top of the line Jazz runs for 716,000- 719,000. Minus the discounts it should be about 700k even.

A used Jazz 1-2 years runs for about the mid 5s but no more than 600k

However 20k per month is what you will be paying for if you finance about 700k for 3 years.

You should be able to buy a car worth 1 million baht and down payment 30% or 300k leaving the 700k within the 20k per month budget. Or you can finance an extra year which will bring the monthly payments down.

[culicine]

You won't lose 240K in depreciation in one year on jazz. Take a look at the asking prices on taladrod.com - the asking prices are over 600K for 2009 top models (about 100K depreciation, assuming that will be the actual sale price). Well over 500K is being asked for 2008 cars. It would make no sense to buy second hand, but it shows depreciation isn't all that bad if you wan't to buy new.

[WarpSpeed]

By lucky to have a family do you mean a new baby ?? Or an entire extended family ?? If just a baby there is more then enough room in a Jazz for years to come, why the need for anything larger until it grows a bit eh??...

got a couple of dogs too.....

OK you left that rather major detail out..But I still see no reason to even have to consider buying a larger car in 1 year unless you're feeding the child steroids or something ? But to each his own..

[Kwasaki]

Secondhand Honda wave problems solved. :lol: :lol:

Bucket seat at very little cost.

[gazza1]

You won't lose 240K in depreciation in one year on jazz. Take a look at the asking prices on taladrod.com - the asking prices are over 600K for 2009 top models (about 100K depreciation, assuming that will be the actual sale price). Well over 500K is being asked for 2008 cars. It would make no sense to buy second hand, but it shows depreciation isn't all that bad if you wan't to buy new.

I think my main concern is buying a small car now (ie Jazz) but needing a bigger car next year for dogs and baby. Might as well just buy the big car now on finance!

Thanks for your help.

[gazza1]

You won't lose 240K in depreciation in one year on jazz. Take a look at the asking prices on taladrod.com - the asking prices are over 600K for 2009 top models (about 100K depreciation, assuming that will be the actual sale price). Well over 500K is being asked for 2008 cars. It would make no sense to buy second hand, but it shows depreciation isn't all that bad if you wan't to buy new.

Very true. Everyone goes on about depreciation but end of day you cant go wrong with a brand new car...warranty, servicing, its all under control. 2ns hand you never know what you can get.

Thanks