Think Hyundai cars have poor resale value? HSDM wants to fix that!

Hyundai currently makes some of the prettiest-looking cars, but it is hampered by the perception of poor resale value. Globally, you would see Hyundais plying the roads and they also score very high in reliability ratings.

But here, Malaysians prefer the appeal of the mighty 'lambang H' and its Japanese derivatives to a Korean brand. So, how true is the notion of Hyundais having poor resale value? Let's find out.

For this article, we compare the fifth-gen Hyundai Elantra, the Honda Civic FB, and the 11th-gen Toyota Corolla Altis. All three models are launched between 2014 and 2015, so we'll mainly focus on those model years.

After all, not only do they share a segment, but all 3 offered a similar sized engine displacement in their variants.

The following are the launch prices of the respective models:

• Hyundai Elantra 1.8 Premium (RM 115,616 in 2015)
• Toyota Corolla Altis 1.8 G (RM 119,000 in 2014)
• Honda Civic 1.8 S (RM 113,800 in 2014)

Looking through the online classifieds, the following are the estimated average prices of the respective used cars:

• 2015 Hyundai Elantra 1.8 Premium (RM 49,700 est)
• 2015 Toyota Corolla Altis 1.8 G (RM 63,700 est)
• 2015 Honda Civic 1.8 S (RM 55,900 est)

And finally, the depreciation value of all three cars after 5 years:

• 2015 Hyundai Elantra 1.8 Premium (holds 43% est value)
• 2015 Toyota Corolla Altis 1.8 G (holds 54% est value)
• 2015 Honda Civic 1.8 S (holds 49% est value)

Based on these numbers, the Hyundai's value appears poorer, but the difference is not as much as you think. There is a difference of RM 5,000 from a Honda. Toyota of course, remains the benchmark.

"Most used car dealers tend to undervalue second-hand Hyundai cars and will offer the lowest possible price in order to get a higher resale profit, presuming that the car will be difficult to sell," Hyundai-Sime Darby Motors (HSDM) says.

"In actual fact, the resale value for Hyundai cars is only slightly lower or on par with other car brands of the same segment given the same year make."

Still, cars tend to lose about 20% of their value within the first year and 15% every subsequent year until their tenth year where the vehicle will be worth around 10% of its original value.

With that being said, in order to get the highest resale value, this applies to any make, it's best to sell it directly by yourself. When you sell to a used car dealer, the value you get is a lot less than its market value, this also applies to all makes.

At the moment, HSDM is offering an overtrade promotion campaign. Buyers will enjoy an additional RM 5,000 overtrade when they trade in an older Hyundai vehicle for a new one.

If you don't own a Hyundai vehicle but are looking to trade-in your old jalopy for a cool, new Hyundai, HSDM will still offer up to RM 3,000 more than the trade-in price. The promotion is for a limited time only.

HSDM has said that the company is offering this generous trade-in support to ensure that customers get the best deal in the market and top value for their vehicle.

“This way, potential Hyundai car owners can shop with peace of mind, and perhaps consider buying a more premium model than they had initially planned,” says Mr. Low Yuan Lung, Managing Director of HSDM.

In order to qualify for this special trade-in price, car owners must ensure all their documents are genuine and meet Puspakom’s requirements. The trade-in of a used vehicle must also go through Sime Darby Auto Selection Sdn. Bhd.

Hyundai has launched quite an assault on the popular segments with the Kona, Elantra, and Sonata in the past few months. With this deal, maybe it's time Malaysians start to embrace Korean cars as much as Korean smartphones, Korean cuisine, and Korean dramas.