As a financial consultant, I agree and I said the same thing to my clients and friends. My opinion tho, is that only thing matter is on your ability to purchase which class for car. Most young adults in Malaysia purchase cars with monthly payment that eats up at least 50% of their income, then it led to bankruptcy and so on.
agreed on your point. but people need to be mature enough to spend within their means. The real issue is, many buy beyond their affordability and hence clinging on resell value to recover money when being sold.
thebugbud correct, for me, I have this thought where if a person worries so much about resale value, it means that the person can't financially support the car he has or wants to buy.
First things first, I think Bobby has used some pretty good analogies that were explained rather poorly (sorry Bobby). Shoes (or cars) are a product you buy and own; but like any product, it will depreciate overtime. What you can control is the utility you gain out of the money you've paid. If you take a 5 year loan and keep a car going for 10 years; you basically have 5 years of additional utility without having to repay the bank. i.e. Drive for 10 years, pay bank for 5 years. Now think of Maxis (a service subscription) as a car leasing programme. You never really own the network (or car) but you get to use it as long as you pay every month. i.e. Drive for 10 years, pay dealer for 10 years. Does that mean there's no depreciation in leasing? Actually, there is. When you take up a leasing programme, there is no interest from a bank loan. Therefore, the amount you pay to the dealer every month is literally the depreciation cost of the vehicle - that's how leasing programmes work. Road tax and insurance costs are also loaded into monthly repayments. Side note, insurance costs on a leased vehicle are typically higher than a personal car because dealers usually get maximum coverage on everything. Some coverage areas may not even be applicable to you personally, but you have to pay for it anyway. A leasing programme is for you if you see yourself wanting a new car every 3 to 5 years. A hire purchase gives you more control on how much utility you can get out of a vehicle for the price you paid after the tenure has ended...keep it running for the next 10, 15, or even 20 years! In a nutshell, you cannot escape depreciation either way. So I think what Bobby is trying to say is...don't fret, buy something within your capacity and just enjoy the drive.
HOMAIGAAD you guys so interested in smelly shoes and a stupid fat orang utan giving financial advise .... this was a random clip I had in my laptop before i wanted to delete the folder as my depreciating laptop is running out of storage space. It really sucks because my depreciating SSD which I bought earlier on had 500GB of space but now it's only left with 45GB. Anyway, I'm thinking of spending RM50,000 to do up my garden but when i think about the depreciation ratio of all my future flowers and trees I'm not sure if i really want that. Should've just stayed at a friend's place all my life just so I won't make losses of any kind.
Awesome video. Businesses has become services and no longer are just products. Just the same... cars are now worth for the emotion, extension of your possibilities, your passion and how it completes you. Agree not everyone are in this space but that is the future. We won't own cars in the future. There's ride sharing, leasing, fully automated cars and the next great thing which we can't conceive about. I have a smile each time I take my car out driving and am finding every excuse I can to do so... people should start to learn to live their lives.
People should buy cars they could afford. People tend to buy cars just so they can please people who does not even give a crap! If you can't afford, don't think about owning one.
Oh that's a pretty arrogant statement -- Perodua has been selling the most cars, and it's best seller is (according to you) 'the choice of those worried about price'.
From my personal experience (people that I know etc) the folks that complains about car resale values, or worries about depreciation, tend to pay good money for iPhoneX, but drive econoboxes. It's just their way of justification.
Boon Khong Foo a good Japanese car is 15-25X the price of iPhone X, while a good euro car is 50x the price of iPhone X, not inclusive of maintenance and interest, while iPhone x essentially no maintenance needed. why you even compare the 2
yes, i can understand your statement...i m one of the folks thinking that myvi is good car ...until my 'atas' boss changed my views...rich ppl think different way...
Agreed with this but this topic is self-opinionated. People who aren't into cars will talk depreciation bullshit but a petrolhead would think differently. This doesn't mean those people are "stupid", they just have different opinions. They see cars as assets that will depreciate cause they're not really into cars.
Eric Tee I totally agree with you period. What I don’t agree is why on earth is Bobby has to take so many pairs of smelly shoes to explain it!?? What’s the fuss and tension about?? Simple equation does not need high tech explanations bro. Btw, he left out insurance underwriters!
Eric Tee I totally agree with you period. What I don’t agree is why on earth is Bobby has to take so many pairs of smelly shoes to explain it!?? What’s the fuss and tension about?? Simple equation does not need high tech explanations bro. Btw, he left out insurance underwriters!
Sean Liew dude, u gotta remember there are idiots out there who don't understand what we understand😉. Cause they are not even true petrolheads if they can't understand
Bobby comes across as arrogant in dissing car buyers who choose to or are forced to be a bit more careful with their money. As if he views with contempt all those who cannot afford not to give a shit about depreciation. So lansi meh? He didn't have to get worked up over a valid and justified consumer behaviour.
Chin Wee Ow I believe everyone understands him perfectly but as Sonny said he might be just another wannabe and cocky. To be honest, most of the times he doesn’t review cars on what potential buyers should know, for example suspension or NVH in details. What we got is his blah...blah and more blah! And furthermore nowadays he has got a sidekick smiling all the way. For me and most of us, we need detailed information about the car reviewed and not salesman speech.
Just different ppl come with different perception.. Some ppl preferred luxury stuffs like watches, other branded stuffs which might no resell value at all but still non stop buying, traveling which bring back some sweet memories, something that others might not understand or appreciate at all but this is what we call human.. Enjoy your life with something u like the most and reachable.. Cheersss..
Nicely spoken Mr. Bobby.. i know a lots of financial advisor so called who cant event manage their own financial things other than giving advice to people about financial freedom 😂 Must show them this video 👍😁
Next years model will be better than this years. Lease it unless you cant afford it. In that case, buy but don't complain about depreciation because it will depreciate. - Booby Ang
I completely agree, cars outside of Bolehland are consumables like shoe. However, cars in Bolehland are more than asset, to some extend, a luxury given the week dollar, high taxes paid to the garmen. Ppl take up loans up to 9 years just to make it affordable to own it by paying enormous amount in bank interest. At then end of 9 years, the car probably worth 10% or 20% (if u r lucky) of it’s original price. Is worth spending ur hard earn cash into a consumable? I would rather take a fraction of the installment to buy an iPhone X instead.
Ppl buy the cars they could afford, who doesn't want a luxury car without bothering the cost of maintenance and depreciation? the reality is... car is expensive, would you recommend a total 3k monthly income family to buy a Mercedes or BMW? If cars is the same price as your Air-con, i don't think anyone will bother the depreciation/maintenance cost.
VacancyJB depends... id recommend like an e46 325i or ci. Theyre good on gas and never break better than that family buying a toyota or honda or some other trash
Car lover/enthusiast aside, if you have a toyota and honda both costs 50k, you love both car equally, one depreciate more hence lower resale value, which would you choose? of course the one with higher resale value, that way u can sell and get back higher value and get another car of your liking.
What im saying, is that for car enthusiasts that wants to spend money on whatever, take it as a hobby, not everything can be measured with a "resale value"
You can’t compare a car to a shoe or a refrigerator. They have different price levels compare to average salaries. The problem is not the car. The problem is when people get a car that sets them back financially. This would also be true if someone bought a very expensive shoe on credit while having a very low income. People just need to buy what they can really afford.
In cheap labor countries like Indonesia, buy a used luxury car. Cheap price, and you can still enjoy a lot of comfort/driving features - albeit not the latest and greatest stuff. I have an 08 730 Li, I laugh at lower level new cars costing 10 times as much. In Singapore - it's not a good idea to maintain an old 7 series lol...Take advantage of what you have locally, buy what you can comfortably afford.
BMWE66 why is it not good in singapore to maintian older car? U have to pay some extra taxes and stuff if car is too old? Btw the motor in that car is a gem that thing never really goes bad assuming its the m54
Because Singapore has high labor costs - it will get really expensive to maintain oldies lol. My motor is the N52. I have an M54 on my E46, and an M52 on my E39
Don’t sell your car = self value remains the same .. cars are not investment , they are our companion on the road. Does your Wife depreciate? Some say yes . Some say no. Think about it
the most unlogical explanation. we are talking about a car that cost 50k and a shoes and air cons only cost rm100 and rm1000. the max depreciation for a car is max 50k and a air conditioning max depreciation is 1k. what is the majority salary in Malaysia 2k to 3k. this kind of opinion please keep it to the rich people
If I wanna buy a Mercedes Benz or BMW that costs 200 to 400k, apart from cutting edge technology and superior performance, I would definitely expect reasonable maintenance cost (of cos I don't expect Myvi's dirt cheap level), build quality, reliability and durability. Not everyone who buys Merc or BMW are wealthy. Even the wealthiest persons in the world are very frugal and particular. In my opinion, I expect quality, durability and reliability. Basic scheduled maintenance would do. I don't expect unscheduled service centre visits, breakdowns, stupid or severe mechanical or electronic issues.
If you research thoroughly, you would discover that expensive luxury cars consume lesser petrol than cheaper so called economical cars in spite of heavy body and superior performance
Royal Prince impossible for day to day city traffic. On highway, possible. My 1.8 ton 3 litre turbo sedan only gets 6km/L in city traffic. Myvi will do 10 easily. On highway at 130kmh, sure the myvi will use more fuel since it’s operating at 70% of the power whereas I am at 40%.
C'mon, depreciation rate is only for Singapore (in Malaysia you can use you 20 yrs old car so long the car still maintained well), and it is for Accountant like me.~ It is basically just an accounting term.
I am a financial adviser but not a financial 'anal'yst you can make videos like this but please don't make statement like that about us, not every financial adviser is against buying a car, my customer, started doing his pasar malam business, he wants to buy a perdua myvi and consulted me last week, i told him go ahead, you should upgrade to a better car now since you got some money to spare,really dissapointed with your statement la bobby, because i am really passionate about my job and i take pride in my work, just like you.
haha really just my personal rant after watching some 'guru' stating the obvious in front of a group of students. I can totally replace the subject of 'car' in his speech with so many other things. :p
Just my two cents... 1) Depreciation Value - Most people who are concerned about their car depreciation value is the people who wants to sell back their cars after like 5 years for example (or within thier loan tenure) and expect to either gain some money to for their next car downpayment or break even price so that they can cover/settle the remaining loan balance upon upgrading to other cars without the need to fought more out money just to clear with the bank... that's why for them depreciation value matters. Myself, I drove Saga Flx 1.6 and took a 9 years loan. I even paid slightly higher dp for my saga in 2014.... but if i want sell my car now, the market value vs loan is about 3k less than my full settlement amout, hence, I need to pay 3k+ to the bank before I can even think of foughting out more money for the dp of a new car. And of course if u see the market value vs loan balance (market value based on Mycarinfo) for a myvi vs saga of the same year, your will indeed get better value for myvi. So ya.. for this scenario I do think depreciation value do matters for some people. And the huge difference between car and shoes = car is much more expensive, for some, u need to sell your cars in order to buy another and cars do have a secondhand market unlike shoes (except for the collectables, rare type of shoes, sneakers.etc) Some might says don't invest in cars bla2.. ya I also disagree with that statement, however, I think if you compare Cars vs House (I mean both are assets right), Car is also rather essential to have these days but not a good investment if to be compared to a house as cars value depreciate and house most if the time goes up in value. But nevertheless it doesn't mean you shouldn't buy a car. 2) Maintenance price etc - I agree with u, maintenance is rather unavoidable
i don't know what upset you so much about people talking about depreciation. some people never do a proper budget on owning a car they desire vs require. they end up with financial difficulties just to maintain the car when the major parts started to fail them. japanese made sold here are more reliable and easily repaired or perceived to be such hence it's easier to sell in the 2nd hand market. the value of 2nd cars ia driven by supply and demand. not much on depreciation la dude. chill laaa
I do agree to what boby says, it just,if you buy a 500k car, after 10 years, the price is going to be 70-80k only, depreciation happend, compared to buying a house, 500k after 10 years, the price is going to be doubled, so , the chances of losing your money isnt as high as buying cars,
Well in Malaysia if you try sleeping in the car, consider yourself lucky if you wake up alive. House would be much safer, and appreciates in value over time. Go figure. I understand what Bobby is trying to say but I'm glad that hes not my wealth manager 🤣
But what did you enjoy during that 7 years.... how did that make you feel. Where did it take you.... how did it extend from what you were already were...?
Thanabalasingam Krishnan Moogathy yes I do agree, we enjoy cars more, but if youre talking about asset, for sure cars wont give you any profit. Cars is not a good investment. It depreciate so much,
well, I agree with most of the part you just said. Car maintenance fee should be considered before buying a car thats what most people ignoring. But as for depreciation, everyone can have their own opinion and thats not 'stupid' they just see things differently. At the end of the day it depends on how you sees it. If you compare with shoes, depreciation is nothing even it depreciate 20% a year. But for others who might not car enthusiast, that rate of depreciation is not to be neglect due to the price. You compare it with shoes, some might compare it with property, they're not stupid especially for financial analyst. I like your content and I agree with you most of the time just wanna say that everyone can have own opinion.
Depreciation only happened in Singapore due to the COE (10years life span).In Malaysia don’t have such issue. If able to afford a bigger car so shouldn’t complain about the maintenance cost. If not , spend within your limits (do a simple calculation before any purchase of a car).
First of all,car is now indeed regarded as a daily commodity as it brings us places regardless of how far we will be going.There are various cars ranging from 20k to 2M which do exactly the same things for a ordinary human who lives in urban area if we put aside the specification and the details of that particular car.By all means,the more we pay,the more equipments we get to enjoy.We periodically maintain our car so that the car can keep doing its purpose,which is to take people places.A proprety,on the other hand,costs similarly to what car-buying costs.It is still needed to be furnished,as if we spec our car with different amenities.Similarly,a property has to be maintained.However,if speaking of the maintainance costs,is worthwhile in terms of the commercial value?Regardless of how obedient you are in owing a car,will the value of the car be doubled in the next 10 years?A property,however,the price must be higher than what it was.We can get more than what we have paid for a property.Majority of people invest in property like a SOHO to lend it to others as a source of income.Rarely do people rent their cars as almost each grown-ups owns a car.Therfore,it is more worthy buying a property than a car.Don't get me wrong,car is still a must-buy.Why don't we spend more on a property than a car?unless you're wealthy.
You can get different types of shoes for different purposes but how many people can get different types of cars for different purposes? Hence come the question of the car lifespan vs depreciation value. If today you get your dream car, does that mean you get to use it forever practically? I don't think so but you can keep it as long as you want. Probably the car will turn valuable as classic model but mayb not within your life time and depending on how well it preserved. So we must chose wisely upon buying a car in terms of our affordability and the practicality. If you plan to get a car for practical multipurpose (eg. like hiking shoes, jogging shoes, sandals, all in one = family car, long distance travel, city driving, day to day go to work then for sure the car wont last forever or it will cost a fortune to maintain because the spare parts will be getting expensive due to supply & demand of an obsolete model. Hence this is the very reason why car values depreciates a lot compare to properties. Basically any tech gadgets including cars will depreciate due to the evolutionary of technology. They just have to keep evolving.
if we bought a shoes rm200, we no need to take loan. we buy car need to take 5 figure loan and pay every month and can be bankrupt if we are not able to pay. shoes won't make us bankrupt and suffering paying bank every bank
what I don't agree is the high price that the car cost. It doesn't make sense when one have to fork out so much (as 3rd world country) while US can be so much cheaper. That's make a car literally a liability yet a necessity.
The reason car is high price in Malaysia is because of our own government and their 300% tax on vehicles. Another cause is our countries money has no value to other country making us pay more for something that should cost less.
in ASEAN countries, Malaysia is still one of the cheapest place to own a car. You can't compare the price with US, our sales volumn just cannot be justified. It is like the same item purchased by Tesco in bulk vs some small kedai runcit from the same supplier will not be the same price.
Agree with you that makes it even more sense to think about the bulk approach. Cars manufactured and distributed in volume. Hence, the industry should try less in customizing too much for local market but make it at regional market where volume is still there. However, that's not the case with the way policy is run and protectionism is heavy. End of day, the consumer that need to folk out more for tax and the car.
further thoughts on this in (rich dad, poor dad term), I think car is more of an expense then an asset of liability. Lets look at an expense point of view, if we choose to spend without any direct or indirect revenue coming out from it, it's cash flow negative. While if we spend with direct or indirect revenue as the result of it, it's cash flow positive. In the context of cash flow positive, it makes plenty of sense to do so as the net net results will make you wealthier In the context of cash flow negative, it's a feel good factor. Now, what is right and what is wrong.. sadly, it's not as simple as that. There will be individual that's wealthy and do not mind cash flow negative. However, for those who are not, then its a matter of personal choice and the individual has to be accountable and responsible for the choices that they made.
I don't know much bout the difference between the maintenance of owning a house compare to owning a car and I'm not very good in everything about cars or houses. But what I do agree upon is what Robert Kiyosaki said: "If you own a house, but it's taking money from your pocket... that's a liability, but if the house you own is giving you money in your pocket, that's an asset.". To me I felt the same. If I own a car and car's value depreciates, but this car is giving me money into my pocket, shouldn't I be appreciating this car as my "gold egg laying goose"? Surely we need to fork out some money to maintain a car. Just get a car that we able to maintain and accept the cost of the car maintenance/depreciation as "Give and Take". Bobby I do like what you say when you shows the Japanese "kik kok"(those old folks name it) wood slipper and your comment nails those complaints deep down to the drain.
He’s just saying we don’t have to view cars as assets = buy. If you lease the car then there’s no consideration of depreciation. it’s just becomes a subscription like your mobile plans.
Hi Bobby. I know this comment will get drowned. Leasing a car is a new concept for Malaysians. Could you further elaborate on pros and cons of such service, specifically in our country. If a video will get you in hot water, I don't mind an article. Thanks.
just buy a car and take good care of it, if you lease the monthly lease will eventually catch up to the cost of owning(buying) a car over a period of time. most importantly the satisfaction of ownership and belonging which you could only experience it by owning 1
They always say Toyota is good at maintenance, my idealogy is that the manufacturer did not use 100% capacity of the engine and keep it around 50% usage hence the life of the engine can last longer. Also with lesser performance, wear and tear might be lesser. Vice versa, in F1, the engineers are trying to cap their car engine and testing the limits of reliability + maximum output. Also an example like Usain Bolt, he run very fast and it requires a lot maintenance and upkeep for him to be in the best form. U can also run 100m at X second. So be going after a pretty/ handsome partner, they spend a lot in facial care, makeup, bodybuilding etc. If you really want a luxurious car, you must be ready for the cost of living. Of course depends on how much you enjoy driving relative to cost. Some drive a normal car but has a very expensive bicycle for weekly cycling. If you want the lowest cost of living, can go for a 2nd hand car and enjoy free sports such as jogging vs golf/ tennis etc. My two cents on living.
Eh, it's simple. Earn more or find a cheaper hobby to derive pleasure from. Econoboxes are good enough for point A to point B driving. There is a car for everyone. But if you see a luxury car and go all bitter and enumerate about all the negatives like how much the maintenance will cost and how much the value will depreciate down the road, do yourself a favour, look away and talk about the weather.
XD 6.28-->smelly.....wipes nose. Why no one questions if RV is not factored in when buy car, how will our local market be? Will we have V6 camry/accord? Will we see peugeot 308 GTi here? Will we see more Ds5 on the road?
Cars are a liability. Assets make you money overtime, most of the time cars do not. One may argue that cars will take you to your workplace, so that you can earn a salary, to pay off your monthly loan, so that you can continue driving the car to work and the cycle goes on. Ultimately, spend within your means. It all depends on the quality of life you want to live and what your priorities/interests are. It's wise to invest in assets early on and reap it's benefits later.
I bought my e46 m3 for 14.9k(165k km) and sold for 17k(220k km) 3 years after so ya most are a liability but if u pick it right u can have fun and and not lose a dime
I dunno. Try turning on your car air cond for 12 hours daily without moving and see if it last 5 years. Big house can fit more people and share the cost. Expensive cars can fit the same amount of people. it's actually apple to orange comparison. Of course if you're rich, you can probably live in a big house alone and USE all 6 air conds to cool your furniture and call it luxury la.
Wow, well said sir, well said, you just won yourself a biggest fan.. That "bee em dabluu" apek impersonation really cracks me up...!!! To hell with the financial analyst / economist and your depreciation theory, it ruins the car industry.. Value of a car is subjective and varies from owner to owner
In accounting terms, all the things you talked about, cars, air conditioners, tables, chairs are all asset. And all assets depreciate over time. Depending on the type of asset, the depreciation rate is between 10-20% every year. Vehicles are typically 20% depreciation per year. That is how it is, and these are all book value, so I don't see how your points invalidated this accounting calculation. Nobody is calling you stupid Bobby, so please be respectful of others too
Those guys are in the banking/financing industry. They aim to protect banking industry by further earn money through interest. They dont like business models that affects them.
I get what you are saying, but you are being very unclear about it. Anyway, spend within your means. To me the depreciation of a new car makes me avoid them. I also think private lease is fairly expensive (at least in my country). Buying a 3-4 year old car with max 100k km on it, and buying that without any sort of financing, is the sweet spot for me when it comes to getting a decent affordable car. I think people don't do it because they simply have not saved enough to get the car they want.
what i'm trying to tell people is that the depreciation of a car is a GAIN and not a loss. And of course a car that depreciates less is MORE GAIN and not LESS LOSS. Because of all things that pleasures us, nothing even has a depreciation ratio to fall onto. Your holiday travel package you splurged on, the tv you bought, the sound system you bought .... whereas cars are already a gain even if it's the worst depreciating car. The point is to buy a car you love and want, not buying a car that you calculated to be worthwhile. That car you love will give you pleasure everyday, that car you calculated is no different from an appliance like your microwave ... i of course want my car to depreciate less, but i won't complain they depreciate at all because i am utilising its value every single day. I'm trying to help people see clearer but many got the wrong message thinking i'm telling people if you can't afford it don't complain .... which wasn't the case.
a 2000 dollar aircon at most can only depreciate 2000 dollar, a car lost the same value in a month, even a major service can cost more than the whole aircon. do you even understand the difference, not everything work in percentage. then there's rules of diminishing returns,a myvi or a vios can essentially do what an A class or C class can do, you wanna splash your money that's your choice, but myvi and vios buyer who think mercedes ain't worth it are mostly correct
As a financial consultant, I agree and I said the same thing to my clients and friends. My opinion tho, is that only thing matter is on your ability to purchase which class for car. Most young adults in Malaysia purchase cars with monthly payment that eats up at least 50% of their income, then it led to bankruptcy and so on.
agreed on your point. but people need to be mature enough to spend within their means. The real issue is, many buy beyond their affordability and hence clinging on resell value to recover money when being sold.
thebugbud correct, for me, I have this thought where if a person worries so much about resale value, it means that the person can't financially support the car he has or wants to buy.
First things first, I think Bobby has used some pretty good analogies that were explained rather poorly (sorry Bobby).
Shoes (or cars) are a product you buy and own; but like any product, it will depreciate overtime. What you can control is the utility you gain out of the money you've paid. If you take a 5 year loan and keep a car going for 10 years; you basically have 5 years of additional utility without having to repay the bank.
i.e. Drive for 10 years, pay bank for 5 years. Now think of Maxis (a service subscription) as a car leasing programme. You never really own the network (or car) but you get to use it as long as you pay every month. i.e. Drive for 10 years, pay dealer for 10 years.
Does that mean there's no depreciation in leasing? Actually, there is. When you take up a leasing programme, there is no interest from a bank loan. Therefore, the amount you pay to the dealer every month is literally the depreciation cost of the vehicle - that's how leasing programmes work. Road tax and insurance costs are also loaded into monthly repayments. Side note, insurance costs on a leased vehicle are typically higher than a personal car because dealers usually get maximum coverage on everything. Some coverage areas may not even be applicable to you personally, but you have to pay for it anyway.
A leasing programme is for you if you see yourself wanting a new car every 3 to 5 years. A hire purchase gives you more control on how much utility you can get out of a vehicle for the price you paid after the tenure has ended...keep it running for the next 10, 15, or even 20 years!
In a nutshell, you cannot escape depreciation either way. So I think what Bobby is trying to say is...don't fret, buy something within your capacity and just enjoy the drive.
Thank you bro...one of the best breakdown on car buying... leasing or owning
one way to escape depreciation, buy an old toyota honda(
HOMAIGAAD you guys so interested in smelly shoes and a stupid fat orang utan giving financial advise .... this was a random clip I had in my laptop before i wanted to delete the folder as my depreciating laptop is running out of storage space. It really sucks because my depreciating SSD which I bought earlier on had 500GB of space but now it's only left with 45GB. Anyway, I'm thinking of spending RM50,000 to do up my garden but when i think about the depreciation ratio of all my future flowers and trees I'm not sure if i really want that. Should've just stayed at a friend's place all my life just so I won't make losses of any kind.
ya we favour this kind vid
lostcluster2 This is what I called trying to paint a masterpiece out from your newspaper full of nonsense.
Bobby Ang can you explain more regarding the financial plan most automobile company offering now
Awesome video. Businesses has become services and no longer are just products. Just the same... cars are now worth for the emotion, extension of your possibilities, your passion and how it completes you. Agree not everyone are in this space but that is the future. We won't own cars in the future. There's ride sharing, leasing, fully automated cars and the next great thing which we can't conceive about. I have a smile each time I take my car out driving and am finding every excuse I can to do so... people should start to learn to live their lives.
People should buy cars they could afford. People tend to buy cars just so they can please people who does not even give a crap! If you can't afford, don't think about owning one.
1000% agree.
Adrian Chin damn straight. If everyone is so damn worried about car prices, the best solution is u know... the myvi ;)
Oh that's a pretty arrogant statement -- Perodua has been selling the most cars, and it's best seller is (according to you) 'the choice of those worried about price'.
K Khalifah how is that arrogant? Isn't the myvi the best econo car?
2nd hand myvi better still, save u alot of $$$$ for ur dream bmw
From my personal experience (people that I know etc) the folks that complains about car resale values, or worries about depreciation, tend to pay good money for iPhoneX, but drive econoboxes. It's just their way of justification.
Boon Khong Foo a good Japanese car is 15-25X the price of iPhone X, while a good euro car is 50x the price of iPhone X, not inclusive of maintenance and interest, while iPhone x essentially no maintenance needed.
why you even compare the 2
yes, i can understand your statement...i m one of the folks thinking that myvi is good car ...until my 'atas' boss changed my views...rich ppl think different way...
Agreed with this but this topic is self-opinionated. People who aren't into cars will talk depreciation bullshit but a petrolhead would think differently. This doesn't mean those people are "stupid", they just have different opinions. They see cars as assets that will depreciate cause they're not really into cars.
Eric Tee I totally agree with you period. What I don’t agree is why on earth is Bobby has to take so many pairs of smelly shoes to explain it!?? What’s the fuss and tension about?? Simple equation does not need high tech explanations bro. Btw, he left out insurance underwriters!
Eric Tee I totally agree with you period. What I don’t agree is why on earth is Bobby has to take so many pairs of smelly shoes to explain it!?? What’s the fuss and tension about?? Simple equation does not need high tech explanations bro. Btw, he left out insurance underwriters!
Sean Liew dude, u gotta remember there are idiots out there who don't understand what we understand😉. Cause they are not even true petrolheads if they can't understand
Bobby comes across as arrogant in dissing car buyers who choose to or are forced to be a bit more careful with their money. As if he views with contempt all those who cannot afford not to give a shit about depreciation. So lansi meh?
He didn't have to get worked up over a valid and justified consumer behaviour.
Chin Wee Ow I believe everyone understands him perfectly but as Sonny said he might be just another wannabe and cocky. To be honest, most of the times he doesn’t review cars on what potential buyers should know, for example suspension or NVH in details. What we got is his blah...blah and more blah! And furthermore nowadays he has got a sidekick smiling all the way. For me and most of us, we need detailed information about the car reviewed and not salesman speech.
Haha.. great explanation there bobby. I always like ur way of thoughts about owning a car.
Hi Bobby,how long does it takes to fully assemble a car.Be it a Japanese or Continental.Tq.
What is the car you are in the video, Bobby? I like the inclination of the back seat. It looks amazing!!
Didn't Porsche do something like this with their new 360 financing? How does it work?
Just different ppl come with different perception.. Some ppl preferred luxury stuffs like watches, other branded stuffs which might no resell value at all but still non stop buying, traveling which bring back some sweet memories, something that others might not understand or appreciate at all but this is what we call human.. Enjoy your life with something u like the most and reachable.. Cheersss..
His different perception is by calling others stupid.
Nicely spoken Mr. Bobby.. i know a lots of financial advisor so called who cant event manage their own financial things other than giving advice to people about financial freedom 😂
Must show them this video 👍😁
I like this Bobby. Makes me smile for Toyota, Honda and Perodua owners who just own for depreciation value and 'reliability'.
If I marry a wife, what would be her depreciation cost per year? Shall I lease or marry a wife?
Horng Kai Chee Lease on short term so can you charge the expense to statement of profit and loss ! Haha
You can lease 45 minutes at a time too, depending on your... requirements.
Lease of course
Next years model will be better than this years. Lease it unless you cant afford it. In that case, buy but don't complain about depreciation because it will depreciate. - Booby Ang
Go for thailand brand. They sell good and cheap....
Where you buy the Japanese saddle?
Hi Bobby. Please make videos on how to buy used BMW, whether it is worth it.... haha, fresh graduate aspiring to buy one here
Bobby I believe I got your point precisely. Smelly shoes are not necessary.
Love the analysis... well done bro.
I completely agree, cars outside of Bolehland are consumables like shoe.
However, cars in Bolehland are more than asset, to some extend, a luxury given the week dollar, high taxes paid to the garmen. Ppl take up loans up to 9 years just to make it affordable to own it by paying enormous amount in bank interest. At then end of 9 years, the car probably worth 10% or 20% (if u r lucky) of it’s original price. Is worth spending ur hard earn cash into a consumable? I would rather take a fraction of the installment to buy an iPhone X instead.
Any Singaporean agree with this statement?
Bobby, bila will test drive the new Subaru XV?
Good one on Veloster...!!!! Finally someone share my view....!!!!!
Can u review should be service our car aircond. Yes or no why?
My favourite footwear channel lol :-) Keep up the good work Bobby :-)
Ppl buy the cars they could afford, who doesn't want a luxury car without bothering the cost of maintenance and depreciation?
the reality is... car is expensive, would you recommend a total 3k monthly income family to buy a Mercedes or BMW?
If cars is the same price as your Air-con, i don't think anyone will bother the depreciation/maintenance cost.
VacancyJB depends... id recommend like an e46 325i or ci. Theyre good on gas and never break better than that family buying a toyota or honda or some other trash
IF you could loan a premium brand with 3k household lol
Bobby you are killing it man !! great explanation
Well said Bobby 👌🏻🙏🏼 Great video to watch
Car lover/enthusiast aside, if you have a toyota and honda both costs 50k, you love both car equally, one depreciate more hence lower resale value, which would you choose? of course the one with higher resale value, that way u can sell and get back higher value and get another car of your liking.
Totally agree. Cos "i love both equally"
What im saying, is that for car enthusiasts that wants to spend money on whatever, take it as a hobby, not everything can be measured with a "resale value"
dude. in the book. car is liability.
You can’t compare a car to a shoe or a refrigerator. They have different price levels compare to average salaries. The problem is not the car. The problem is when people get a car that sets them back financially. This would also be true if someone bought a very expensive shoe on credit while having a very low income. People just need to buy what they can really afford.
In cheap labor countries like Indonesia, buy a used luxury car. Cheap price, and you can still enjoy a lot of comfort/driving features - albeit not the latest and greatest stuff. I have an 08 730 Li, I laugh at lower level new cars costing 10 times as much. In Singapore - it's not a good idea to maintain an old 7 series lol...Take advantage of what you have locally, buy what you can comfortably afford.
BMWE66 why is it not good in singapore to maintian older car? U have to pay some extra taxes and stuff if car is too old? Btw the motor in that car is a gem that thing never really goes bad assuming its the m54
Because Singapore has high labor costs - it will get really expensive to maintain oldies lol. My motor is the N52. I have an M54 on my E46, and an M52 on my E39
How much is a car? And how much is a pair of shoes?
In the context of an.average Joe's financial worth, what's the significance of a car compared to a shoe? You go figure out in financial terms.
Don’t sell your car = self value remains the same .. cars are not investment , they are our companion on the road. Does your Wife depreciate? Some say yes . Some say no. Think about it
the most unlogical explanation. we are talking about a car that cost 50k and a shoes and air cons only cost rm100 and rm1000. the max depreciation for a car is max 50k and a air conditioning max depreciation is 1k. what is the majority salary in Malaysia 2k to 3k. this kind of opinion please keep it to the rich people
Exactly. I am a fan of him but I'm shocked by this video. Full of Bs
If I wanna buy a Mercedes Benz or BMW that costs 200 to 400k, apart from cutting edge technology and superior performance, I would definitely expect reasonable maintenance cost (of cos I don't expect Myvi's dirt cheap level), build quality, reliability and durability. Not everyone who buys Merc or BMW are wealthy. Even the wealthiest persons in the world are very frugal and particular. In my opinion, I expect quality, durability and reliability. Basic scheduled maintenance would do. I don't expect unscheduled service centre visits, breakdowns, stupid or severe mechanical or electronic issues.
Buying an expensive car is supposed to be value for money. Just because its exorbitant in price, that doesn't justify massive maintenance.
If you research thoroughly, you would discover that expensive luxury cars consume lesser petrol than cheaper so called economical cars in spite of heavy body and superior performance
Royal Prince impossible for day to day city traffic. On highway, possible. My 1.8 ton 3 litre turbo sedan only gets 6km/L in city traffic. Myvi will do 10 easily. On highway at 130kmh, sure the myvi will use more fuel since it’s operating at 70% of the power whereas I am at 40%.
wahliaooo bro hahaha the end part sarcasm at its finest hahaha..cheers
Airconds is a small part of our income but a car is a big part of our income. I know you love cars Bobby, and I respect that.
Bobby....Can U review Nissan GTR 2017 Model Plzz....
That not so subtle jab at the Veloster :D
You deserve a Subscribe and Like... Thank you for the honest and personal pov review
Hahahahahaha I like the way u talk bobby... strait forward
This video title immediately attracted my view hahaha.
这个标题够牛，你直接夺了我们的views! 哈哈哈
Bobby u are my car guru!
C'mon, depreciation rate is only for Singapore (in Malaysia you can use you 20 yrs old car so long the car still maintained well), and it is for Accountant like me.~ It is basically just an accounting term.
I am a financial adviser but not a financial 'anal'yst you can make videos like this but please don't make statement like that about us, not every financial adviser is against buying a car, my customer, started doing his pasar malam business, he wants to buy a perdua myvi and consulted me last week, i told him go ahead, you should upgrade to a better car now since you got some money to spare,really dissapointed with your statement la bobby, because i am really passionate about my job and i take pride in my work, just like you.
haha really just my personal rant after watching some 'guru' stating the obvious in front of a group of students. I can totally replace the subject of 'car' in his speech with so many other things. :p
Just my two cents...
1) Depreciation Value - Most people who are concerned about their car depreciation value is the people who wants to sell back their cars after like 5 years for example (or within thier loan tenure) and expect to either gain some money to for their next car downpayment or break even price so that they can cover/settle the remaining loan balance upon upgrading to other cars without the need to fought more out money just to clear with the bank... that's why for them depreciation value matters. Myself, I drove Saga Flx 1.6 and took a 9 years loan. I even paid slightly higher dp for my saga in 2014.... but if i want sell my car now, the market value vs loan is about 3k less than my full settlement amout, hence, I need to pay 3k+ to the bank before I can even think of foughting out more money for the dp of a new car. And of course if u see the market value vs loan balance (market value based on Mycarinfo) for a myvi vs saga of the same year, your will indeed get better value for myvi. So ya.. for this scenario I do think depreciation value do matters for some people.
And the huge difference between car and shoes = car is much more expensive, for some, u need to sell your cars in order to buy another and cars do have a secondhand market unlike shoes (except for the collectables, rare type of shoes, sneakers.etc)
Some might says don't invest in cars bla2.. ya I also disagree with that statement, however, I think if you compare Cars vs House (I mean both are assets right), Car is also rather essential to have these days but not a good investment if to be compared to a house as cars value depreciate and house most if the time goes up in value. But nevertheless it doesn't mean you shouldn't buy a car.
2) Maintenance price etc - I agree with u, maintenance is rather unavoidable
i don't know what upset you so much about people talking about depreciation. some people never do a proper budget on owning a car they desire vs require. they end up with financial difficulties just to maintain the car when the major parts started to fail them. japanese made sold here are more reliable and easily repaired or perceived to be such hence it's easier to sell in the 2nd hand market. the value of 2nd cars ia driven by supply and demand. not much on depreciation la dude. chill laaa
I do agree to what boby says, it just,if you buy a 500k car, after 10 years, the price is going to be 70-80k only, depreciation happend, compared to buying a house, 500k after 10 years, the price is going to be doubled, so , the chances of losing your money isnt as high as buying cars,
As Bobby once said in Kia Optima GT video, "you can sleep in your car but you can't take your house for a drive"..
Well in Malaysia if you try sleeping in the car, consider yourself lucky if you wake up alive. House would be much safer, and appreciates in value over time. Go figure. I understand what Bobby is trying to say but I'm glad that hes not my wealth manager 🤣
Bg
But what did you enjoy during that 7 years.... how did that make you feel. Where did it take you.... how did it extend from what you were already were...?
Thanabalasingam Krishnan Moogathy yes I do agree, we enjoy cars more, but if youre talking about asset, for sure cars wont give you any profit. Cars is not a good investment. It depreciate so much,
I LOL when you brought out that last pair of "shoe"
Hahahaha.. really loves your comment on veloster..
well, I agree with most of the part you just said. Car maintenance fee should be considered before buying a car thats what most people ignoring. But as for depreciation, everyone can have their own opinion and thats not 'stupid' they just see things differently. At the end of the day it depends on how you sees it. If you compare with shoes, depreciation is nothing even it depreciate 20% a year. But for others who might not car enthusiast, that rate of depreciation is not to be neglect due to the price. You compare it with shoes, some might compare it with property, they're not stupid especially for financial analyst.
I like your content and I agree with you most of the time just wanna say that everyone can have own opinion.
Lesson learnt Bobby 👍🏼👍🏼👍🏼
Can u review a toyota crown grs204 athlete
Depreciation only happened in Singapore due to the COE (10years life span).In Malaysia don’t have such issue.
If able to afford a bigger car so shouldn’t complain about the maintenance cost.
If not , spend within your limits (do a simple calculation before any purchase of a car).
Hahaha straight to the point love it 😂👍
Cars r like shoes... Can't agree enough
First of all,car is now indeed regarded as a daily commodity as it brings us places regardless of how far we will be going.There are various cars ranging from 20k to 2M which do exactly the same things for a ordinary human who lives in urban area if we put aside the specification and the details of that particular car.By all means,the more we pay,the more equipments we get to enjoy.We periodically maintain our car so that the car can keep doing its purpose,which is to take people places.A proprety,on the other hand,costs similarly to what car-buying costs.It is still needed to be furnished,as if we spec our car with different amenities.Similarly,a property has to be maintained.However,if speaking of the maintainance costs,is worthwhile in terms of the commercial value?Regardless of how obedient you are in owing a car,will the value of the car be doubled in the next 10 years?A property,however,the price must be higher than what it was.We can get more than what we have paid for a property.Majority of people invest in property like a SOHO to lend it to others as a source of income.Rarely do people rent their cars as almost each grown-ups owns a car.Therfore,it is more worthy buying a property than a car.Don't get me wrong,car is still a must-buy.Why don't we spend more on a property than a car?unless you're wealthy.
Can’t agree more , even though I am from financial background 👍😂
Bobby. Well said.. I fully agreed with you..
Awesome bobby!
Boo yeah! Good job Bobby on this video.
You can get different types of shoes for different purposes but how many people can get different types of cars for different purposes? Hence come the question of the car lifespan vs depreciation value.
If today you get your dream car, does that mean you get to use it forever practically? I don't think so but you can keep it as long as you want. Probably the car will turn valuable as classic model but mayb not within your life time and depending on how well it preserved.
So we must chose wisely upon buying a car in terms of our affordability and the practicality. If you plan to get a car for practical multipurpose (eg. like hiking shoes, jogging shoes, sandals, all in one = family car, long distance travel, city driving, day to day go to work then for sure the car wont last forever or it will cost a fortune to maintain because the spare parts will be getting expensive due to supply & demand of an obsolete model. Hence this is the very reason why car values depreciates a lot compare to properties.
Basically any tech gadgets including cars will depreciate due to the evolutionary of technology. They just have to keep evolving.
hahaaha... when u take out the wooden sandal at the end... OMG .. epic... wear them to MidValley... nice...
I become your fan after I watch your video
if we bought a shoes rm200, we no need to take loan. we buy car need to take 5 figure loan and pay every month and can be bankrupt if we are not able to pay. shoes won't make us bankrupt and suffering paying bank every bank
Wow bobby. On spot stuff.
what I don't agree is the high price that the car cost. It doesn't make sense when one have to fork out so much (as 3rd world country) while US can be so much cheaper. That's make a car literally a liability yet a necessity.
The reason car is high price in Malaysia is because of our own government and their 300% tax on vehicles. Another cause is our countries money has no value to other country making us pay more for something that should cost less.
in ASEAN countries, Malaysia is still one of the cheapest place to own a car. You can't compare the price with US, our sales volumn just cannot be justified. It is like the same item purchased by Tesco in bulk vs some small kedai runcit from the same supplier will not be the same price.
Agree with you that makes it even more sense to think about the bulk approach. Cars manufactured and distributed in volume. Hence, the industry should try less in customizing too much for local market but make it at regional market where volume is still there. However, that's not the case with the way policy is run and protectionism is heavy. End of day, the consumer that need to folk out more for tax and the car.
further thoughts on this in (rich dad, poor dad term), I think car is more of an expense then an asset of liability. Lets look at an expense point of view, if we choose to spend without any direct or indirect revenue coming out from it, it's cash flow negative. While if we spend with direct or indirect revenue as the result of it, it's cash flow positive.
In the context of cash flow positive, it makes plenty of sense to do so as the net net results will make you wealthier
In the context of cash flow negative, it's a feel good factor.
Now, what is right and what is wrong.. sadly, it's not as simple as that. There will be individual that's wealthy and do not mind cash flow negative. However, for those who are not, then its a matter of personal choice and the individual has to be accountable and responsible for the choices that they made.
Best video ever!!!
I don't know much bout the difference between the maintenance of owning a house compare to owning a car and I'm not very good in everything about cars or houses. But what I do agree upon is what Robert Kiyosaki said: "If you own a house, but it's taking money from your pocket... that's a liability, but if the house you own is giving you money in your pocket, that's an asset.". To me I felt the same. If I own a car and car's value depreciates, but this car is giving me money into my pocket, shouldn't I be appreciating this car as my "gold egg laying goose"? Surely we need to fork out some money to maintain a car. Just get a car that we able to maintain and accept the cost of the car maintenance/depreciation as "Give and Take". Bobby I do like what you say when you shows the Japanese "kik kok"(those old folks name it) wood slipper and your comment nails those complaints deep down to the drain.
Hi bobby i watched the video in 2019 ... good day to you
Could not agree more Bobby!
Brevity is the soul of wit. In short it can be summarised as "Live within your means"
He’s just saying we don’t have to view cars as assets = buy. If you lease the car then there’s no consideration of depreciation. it’s just becomes a subscription like your mobile plans.
Hi Bobby. I know this comment will get drowned. Leasing a car is a new concept for Malaysians. Could you further elaborate on pros and cons of such service, specifically in our country. If a video will get you in hot water, I don't mind an article.
Thanks.
U slapped it hard straight into those type of ppl Bobby! Hahaha. GOOD ONE mate!
I was like... Ouch-ing... For them xD
Hi Bobby I like the last pair of shoes 😂 well said
yeahhhhh!!!! agree!
bobby, pls pls pls review vw jetta..plsss
On point!
just buy a car and take good care of it, if you lease the monthly lease will eventually catch up to the cost of owning(buying) a car over a period of time. most importantly the satisfaction of ownership and belonging which you could only experience it by owning 1
on point bobby!
They always say Toyota is good at maintenance, my idealogy is that the manufacturer did not use 100% capacity of the engine and keep it around 50% usage hence the life of the engine can last longer. Also with lesser performance, wear and tear might be lesser. Vice versa, in F1, the engineers are trying to cap their car engine and testing the limits of reliability + maximum output.
Also an example like Usain Bolt, he run very fast and it requires a lot maintenance and upkeep for him to be in the best form. U can also run 100m at X second. So be going after a pretty/ handsome partner, they spend a lot in facial care, makeup, bodybuilding etc.
If you really want a luxurious car, you must be ready for the cost of living. Of course depends on how much you enjoy driving relative to cost. Some drive a normal car but has a very expensive bicycle for weekly cycling.
If you want the lowest cost of living, can go for a 2nd hand car and enjoy free sports such as jogging vs golf/ tennis etc. My two cents on living.
Eh, it's simple. Earn more or find a cheaper hobby to derive pleasure from. Econoboxes are good enough for point A to point B driving. There is a car for everyone.
But if you see a luxury car and go all bitter and enumerate about all the negatives like how much the maintenance will cost and how much the value will depreciate down the road, do yourself a favour, look away and talk about the weather.
XD 6.28-->smelly.....wipes nose.
Why no one questions if RV is not factored in when buy car, how will our local market be? Will we have V6 camry/accord? Will we see peugeot 308 GTi here? Will we see more Ds5 on the road?
Well said bro. Well said.
sad that you said my veloster (turbo) is useless :(
The problem lies with the Malaysia cars are more expensive than majority countries.
Hahahahaha... U r damn right, I di 110% agreed with u.
Cars are a liability. Assets make you money overtime, most of the time cars do not. One may argue that cars will take you to your workplace, so that you can earn a salary, to pay off your monthly loan, so that you can continue driving the car to work and the cycle goes on. Ultimately, spend within your means. It all depends on the quality of life you want to live and what your priorities/interests are. It's wise to invest in assets early on and reap it's benefits later.
Johnsk people who disagree need to read a god damn book
I bought my e46 m3 for 14.9k(165k km) and sold for 17k(220k km) 3 years after so ya most are a liability but if u pick it right u can have fun and and not lose a dime
Stefan Cupovic yeah that is an exception because of its rarity in Malaysia, this applies to normal cars like a vios or city
I dunno. Try turning on your car air cond for 12 hours daily without moving and see if it last 5 years. Big house can fit more people and share the cost. Expensive cars can fit the same amount of people. it's actually apple to orange comparison.
Of course if you're rich, you can probably live in a big house alone and USE all 6 air conds to cool your furniture and call it luxury la.
Best shoe with no maintenance is "Adidas Kampung" actually 😊
Wow, well said sir, well said, you just won yourself a biggest fan..
That "bee em dabluu" apek impersonation really cracks me up...!!!
To hell with the financial analyst / economist and your depreciation theory, it ruins the car industry.. Value of a car is subjective and varies from owner to owner
Just buy a used one with low milage. A bit cheaper and some dealership have warranties.
In accounting terms, all the things you talked about, cars, air conditioners, tables, chairs are all asset. And all assets depreciate over time. Depending on the type of asset, the depreciation rate is between 10-20% every year. Vehicles are typically 20% depreciation per year. That is how it is, and these are all book value, so I don't see how your points invalidated this accounting calculation. Nobody is calling you stupid Bobby, so please be respectful of others too
Those guys are in the banking/financing industry. They aim to protect banking industry by further earn money through interest. They dont like business models that affects them.
Principle of supply and demand. Remember in 90s, used cars were more expensive than new.
Well said Bobby . Give a thumb up
The only thing I learn from this video is that I should get a Timberland shoes.
I get what you are saying, but you are being very unclear about it. Anyway, spend within your means. To me the depreciation of a new car makes me avoid them. I also think private lease is fairly expensive (at least in my country). Buying a 3-4 year old car with max 100k km on it, and buying that without any sort of financing, is the sweet spot for me when it comes to getting a decent affordable car. I think people don't do it because they simply have not saved enough to get the car they want.
what i'm trying to tell people is that the depreciation of a car is a GAIN and not a loss. And of course a car that depreciates less is MORE GAIN and not LESS LOSS. Because of all things that pleasures us, nothing even has a depreciation ratio to fall onto. Your holiday travel package you splurged on, the tv you bought, the sound system you bought .... whereas cars are already a gain even if it's the worst depreciating car. The point is to buy a car you love and want, not buying a car that you calculated to be worthwhile. That car you love will give you pleasure everyday, that car you calculated is no different from an appliance like your microwave ... i of course want my car to depreciate less, but i won't complain they depreciate at all because i am utilising its value every single day.
I'm trying to help people see clearer but many got the wrong message thinking i'm telling people if you can't afford it don't complain .... which wasn't the case.
Good explanation, haha nowdays people like to buy car that have high resale value and avoid some brands
a 2000 dollar aircon at most can only depreciate 2000 dollar, a car lost the same value in a month, even a major service can cost more than the whole aircon.
do you even understand the difference, not everything work in percentage.
then there's rules of diminishing returns,a myvi or a vios can essentially do what an A class or C class can do, you wanna splash your money that's your choice, but myvi and vios buyer who think mercedes ain't worth it are mostly correct
This video is literally a blessing. Thanks bobby for speaking out!!