The Malaysian Automotive Association (MAA) recently revised its 2020 Total Industry Volume (TIV) forecast to 400,000 units from 607,000 previously. The 400,000 units forecast would represent a 34% contraction from 2019’s 604,287 units. This will be the first time in 13 years (last 2007) that Malaysia’s TIV failed to surpass the 500k mark.
Imagine for a second what happens to your business if 34 percent of its earnings are slashed in a matter of months. As you might surmise, the COVID-19 pandemic has hit the automotive industry very hard. Whether it be halting of production operations or fractured supply chains due to limited movement of goods, even Toyota has contended that the far-reaching, long-term damage is not yet known at this point.
However, the automotive industry as a whole is immensely robust, and there is evidence to support that automakers will bounce back in 2021. For now, though, there might be a small shift of tides with regard to consumer spending. We have seen this before – in times of economic contraction, buyers tend to gravitate back to mass-selling brands, instead of premium badges, and new car purchases are delayed in favour of getting a reliable used vehicle until times are better, at which point, they go buy a fancier set of wheels.
In either case, the Honda CR-V should rank very highly on many buyer’s wishlists, now in its 5th-generation, spanning 25 years, the CR-V is the king of the hill when people want a reliable, spacious, and comfortable SUV for the family. The current RW-generation brings with it edgy design, class-leading interior space, and for the first time, turbocharged ‘Earth Dreams’ 1.5L engines for better torque and fuel economy numbers.
The fifth-generation CR-V has been a hit since its introduction in 2017
The 4th-generation ‘RM’ before it, built on the success of the 3rd-generation ‘RE’ with substantial growth in interior space, perceived value and quality, and a fresh design language.
The ‘RM’ we will be reporting on today, was first launched in 2013 and had a relatively short lifespan, of just over four years before being replaced in 2017.
Here’s a quick rundown of the model’s presence in the Malaysian market:
- March 2013 – Fourth Generation ‘RM’ CR-V launched. One variant, 2.0-litre i-VTEC (150 PS/ 190Nm) AWD priced at RM148,800.
- June 2013 – Second variant launched, 2.4L i-VTEC (190PS/222Nm) AWD launched at RM169,900.
- January 2015 – Facelifted Honda CR-V ‘RM’ launched. New 2.0L 2WD variant (RM139,800), 2.0L 4WD (RM150,800), and 2.4L 4WD (RM169,800). ‘Solid Wing’ face design first introduced.
- January 2016 – CR-V 2.0L 2WD offered with leather seats at RM142,900 (Post GST)
- July 2017 – All-New ‘RW’ Honda CR-V launched. Priced from RM142k to RM168k.
Now in 2020, having run its complete sales cycle, offers us an opportune time to analyse how the ‘RM’ CR-V has fared on the used-market, and using the resources of our in-house developed iCarData, track the ebb and flow of its depreciation across the last six years.
iCarData's algorithm-based data takes the guesswork out of vehicle depreciation using data points from across virtually the entire market - tracked down to granular levels to include vehicle variant and geographical location. This offers valuable fiscal advice on the best timing to make that all-important purchase or sale decision.
Specification of the 2014 (RM) Honda CR-V 2.0L i-VTEC AWD
- Engine: 2.0-litre (R20A) inline-four Petrol
- Power: 155 PS @ 6,500 rpm
- Torque: 190 Nm @ 4,300 rpm
- Transmission: 5-speed automatic, All-wheel drive
- Safety: Four airbags, ABS with EBD, Brake Assist, Vehicle Stability Assist (VSA), Traction Control, Hill-Start Assist, SOFIX anchor points
- Origin: Locally assembled in Pegoh, Melaka
- Price: RM148,800 – March 2013 launch (OTR with insurance)
We have taken into account the following to keep our numbers accurate and representative.
- Vehicle variant: (RM) Honda CR-V 2.0L i-VTEC AWD), delivered between March and December 2013.
- Depreciation is calculated using the original list price of RM148,800.
- Depreciation percentage does not take into account special/ seasonal offers or rebates on the original selling price.
- The singular 2013 2.0L i-VTEC AWD variant is used for comparison for its conclusive spread of data points across the market.
- Notwithstanding that, depreciation for other variants may differ, in particular the 2.0L 2WD variant launched in 2015.
Based on ICarData, here's the summarized data for depreciation:
And the graphical analysis below:
- Blue line: Average selling price (RM) by year
- Grey line: Cumulative depreciation (RM) by year
- Orange line: Retained value percentage by year
From the depreciation graph, we can clearly see the CR-V has a superbly organic rate of depreciation, pretty much over the entire six-year measured period. In all years except 2017, yearly depreciation is no higher than 10 percent which is as close to ideal as any vehicle can get. It is apparent that the CR-V’s ability to combine practicality, reliability and style ensures market demand is always strong and used prices, stable.
The 2017 year depreciation, amounting to over 14 percent (circa RM20k) could be caused by one singular factor, and that’s the introduction of the 5th-generation ‘RW’ model. All-new model changes will almost certainly affect the demand of older generation vehicles, more so in this case because the ‘RM’ CR-V prices were still hovering at around RM125k as the new model hit showrooms. Hence, it’s quite certain that used prices would have been slashed on the account of the all-new model being priced some RM30k higher.
With that said, elsewhere, the ‘RM’ CR-V holds firm even after 4-5 years of ownership. Another poignant point to consider is the robustness of the CR-V residual value even in the face of competitor model launches. In most cases, we have seen dips in used prices when a competitor model is introduced, such as the case of the BMW 3 Series, when the competing C-Class is introduced.
There is little price variation reflected in the CR-V’s used prices despite the introduction of the CR-Vs’ main competitor, the CX-5 which had its (KE-generation) model introduction in 2012, and the relevant facelift model launched in 2015. The CR-V’s prices also don’t flinch with regard to the Nissan X-Trail, another commendable family SUV.
The graph also quite easily illustrates when an existing owner should sell his/her ‘RM’ CR-V, which is in the sixth year, as the cumulative depreciation approaches that of retained value. At around 50 percent of the original price of the car. It wouldn’t be a bad time for a prospective buyer to pick up an ‘RM’ CR-V in this year too, as prices are half that of a new car, but still relatively new given most of them are just now touching their sixth-year of service.
However, it would be also wise for buyers to pick up CR-V’s just as they enter that fifth year of service as it gives them better financing options, and if even newer (at say 4 years old), some tenure left with the manufacturer warranty still in place.
In any case, the CR-V is an all-star when it comes to a do it all vehicle for the whole family, and as such is one of the finest cars to pick from on the used car market.
For some great deals on the (RM) Honda CR-V, click here.
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Which make/ model would you like us to research next? Let us know in the comments.