A couple of years ago, I ran a story that determined the average resale value of the four most popular brands in Malaysia – Proton, Perodua, Honda and Toyota – together, these four brands garner more than 80 percent of annual sales volume or about four out of every five new cars sold in Malaysia.

Based on the study, four popular models were chosen from each manufacturer to gauge the average resale across the brand over a period of five years. In that study, Perodua inched past Honda to take top honours – with models retaining up to 67 percent of their original value after five years, with Honda’s average at approximately 66 percent.

Another aspect became apparent in the study, the (GM6) Honda City offered some of the strongest resale values of any sedan model after five years, bested only by its larger sibling, the (FC) Honda Civic. Perhaps more importantly, the GM6 City's resale value substantially outperformed its main rival, the Toyota Vios. 

With the introduction of the (GN2) City sedan in 2020, we now ask if the Honda City remains the king of the hill with regards to resale value, and does it still offer better value retention than the Vios? Let’s dig in.

Also read: Used Honda City GM6/7 from RM 50k - C-Segment practicality, Bezza prices, how much to maintain?

Overview

First launched in 2020, the fifth-generation (GN2) Honda City was made available in four variants, three 1.5-litre petrol variants – namely the S, E and V – as well as the RS e:HEV two-motor i-MMD full-hybrid which would join shortly after.

Also read: All-new 2020 Honda City Sedan (GN-series) launched in Malaysia, new engines, from RM 74k

Introductory pieces RM74,191, RM81,664 and RM86,561 for the first three variants and RM 105,950 for the RS e:HEV variant. Note, that all prices were inclusive of the sales tax exemption offered in period by the Government.

To recap, the GN2 City is powered by a 1.5-litre DOHC i-VTEC four-cylinder which outputs 121 PS and 145 Nm in the S, E, and V variants, whilst the RS e:HEV two-motor full hybrid delivers 109 PS and 253 Nm of torque.

Also read: Review: 2021 Honda City RS e:HEV – Hybrid perfomance for the common man

The RS e:HEV variant also introduced for the first time, the Honda Sensing ADAS suite for the City models, which included features such as Forward Collision Warning (FCW), Lane Departure Warning (LDW), Lane Keep Assist (LKAS) and Active Cruise Control (ACC).

Also read: Is the 2023 Honda City facelift still the safest B-segment sedan you can buy in Malaysia today?

Is the (GN2) Honda City the new king of resale value?

The (GN2) Honda City has been around for a bit more than 3 years, thus there’s a healthy number of used units hitting the used car marketplace.

To keep things fair, we will only compare 2020 units of the Honda City 1.5L V against its equivalent year models of the Toyota Vios (G Variant) and the Nissan Almera (VLT variant), its two closest competitors. To keep things as controlled as possible, we will determine the average current market rates as advertised on Carlist.my.

Also read: 2023 Honda City facelift - Let us walk you through the differences on the 5 variants

Based on our findings, these are the current market prices of all three models:

Taking into account the average current market prices, we can now obtain the total depreciation percentage of all three B-Segment sedan models after three years:

• Honda City: ~ 14 percent
• Toyota Vios: ~ 22 percent
• Nissan Almera: ~ 18 percent

And there you have it folks, like its predecessor, the (GN2) Honda City remains the best B-Segment sedan in terms of resale value.

However, you may ask why. Well, it's simple, demand. The Honda City is known for its space and practicality, ease of maintenance, reliability, and most of all, it drives with poise on any given road.

Thus, you can surmise the Honda City appeals to a large range of buyers and buyer types, regardless if you're looking for your first car, trading up for a growing family or for buyers who travel extensively for work. The City does it all. And this ensures demand is healthy and stable for new and used Honda City models.

In fact, even older generations of the City which are 7-,10-, and even 15 years old still trade for slightly more than their equivalent competitors in the used car market.

Though we cannot subtract anything from its competitors as well; the Vios and Almera are equally talented on the road. In fact, the Vios offers a more composed driving experience and better interior refinement, whilst the Almera delivers as much space and even better fuel economy than the 1.5L City petrol variants.

Also read: Used Honda City vs Toyota Vios - For RM 80k - Which is the best starter family sedan for you?

However, the (GN2) City will offer more interior- and boot space than the Vios and the edges out the Almera for ease of maintenance. So it remains the best of all worlds, and used car buyers know this.

It might come as a surprise that the Toyota Vios does not perform as well as the City given its popularity, but not to those in the used car trade; the selling prices are further evidence of this. Additionally, with current discounts on brand new units, resale values of used units also have dropped in tandem, contributing to the lower prices. 

Conclusion

A car is the second biggest expense for most Malaysians, thus it's wise to purchase a new vehicle that has a track record of good demand and strong resale value for two main reasons:

• You are able to easily sell the vehicle later on
• You do not have to fork out extra cash to settle your outstanding hire purchase sum before selling the car

Now of course, resale value isn't the only criterion you should consider when buying a new car, however, it should rank high on the list especially if you plan to upgrade your vehicle after enjoying it for a few years.

To recap, the 2023 (GN2) Honda City is currently offered in five variants inclusive of the newly introduced 1.5L RS petrol variant; prices range between RM 84,900 for the entry-level City 1.5L S to RM 111,900 (OTR sans insurance) for the City RS e:HEV.