Depreciation New Cars In Cmai

[jayinoz]

Hey Guys,

I been looking at the Toyota Forrunner, VIOS, City, Chev, etc and see that NEW we pay approx. only 20-25% more than if 5 yo.

What the deal with that? In Aussie it would 50% OFF.

To depreciate at say 40k pa- what a bargain.

2012 models coming- who likes what.

Place your best offers....

Toyota reduced to 520k for base Vios. 5 years still near 400k.

City more popular... hard to reduce.

Forrunner they will add accessories.

Who been bargaining for 2012 models in CMAI now... as BKK not big diff. Transport nothing on new.

Cheers Jay

[WinnieTheKhwai]

We've been through this topic numerous times.

The short version is that cars depreciate less because it's affordable to keep them in good condition, due to lower labour costs.

If you buy a 10 year old car in the west then you're taking a severe risk of something breaking; the labour rates would mean writing the thing off and having to buy again. This higher risk is reflected in a lower price for used cars.

If you buy a 10 year old car in Thailand then whatever goes wrong can be fixed cheaply. So a much more limited risk, which is reflected in a higher price for used cars: they actually hold true value longer.

Everyone decides for themselves if buying used is worth it; clearly there still is a risk involved, so buying new is a very valid choice. Usually easier to get financing too on a new car, which is another big advantage.

Edited October 22, 2011 by WinnieTheKhwai

[shepsel]

It almost does not pay for the buyer to purchase a used auto (5 years old or less) because of the minimul depreciation on it. Taking in to consideration that most new cars come with a three year guarantee, and one year first class insurance included, getting a 50000 baht reduction on something that is 5 years old sort of says buy the new one. Usually if you purchase first class insurance on a used car the insurance premium is 15000 to 20000 baht, plus you probably have to purchase new tires, and who knows if there was regular maintenance or not on the engine. So, one should do their math beforehand.

Certain makes depreciate much faster than others, but Honda and Toyota don't.