Kenta, an appraiser who drives popular cars for free, talks about how to choose the right car.

The “00%” ratio is important for selecting a car that will not fail.

A car is really an asset. But many people let go of their cars without knowing their value.

This is what Mr. Kenta, a car appraiser, says on his YouTube channel and blog, “Exit Strategies for Cars. In his channel “Kenta Car Analysis [Assessor],” which has more than 60,000 registered users, he explains how to choose a car without losing money based on data and actual examples, and has won the hearts of many viewers who are struggling with car purchases. More than 400 videos have been uploaded over the past six years. He tells his stories not by feel, but by numbers. That is his style.

He says, “The reason why I decided to send out information is because I have seen many people lose hundreds of thousands of yen by trading in their cars at dealerships. I thought that if I had the right information, anyone should be able to make a choice without losing money. Data-driven” and “user first. We do not stop at “buying” a car, but design the entire process, including “how to let go” of the car. That’s where the real smart way to buy a car lies.

We asked this man, who has the on-the-spot experience of an appraiser, about “how to buy a car without making a mistake and how to pass it on wisely.

Many people think only about how much they can buy a car for, but not about how much they can sell it for. But the real battle is at the exit.

Kenta, who has seen countless cars as an appraiser, emphasizes the “residual value ratio after three years.

The average residual value is around 60% of the new car price. The average is around 60%, but I set a pass line at 70% or more. For example, if a car is worth 4 million yen and 60% of the price is retained, the sale price after 3 years is 2.4 million yen. Even in the same three years, the car you choose will make a huge difference in the cost of your life.

If you are aware of the residual value rate, you can afford to choose the car of your choice again after 3 years. Reducing your loss means increasing your freedom. It is much more realistic to think about “how much I can sell it for in 3 years” than to negotiate a discount. It will change the way you structure your loan and give you more leeway in your mind. This is what it means to “ride the numbers.

Sell well rather than buy cheap. That is the simple answer Kenta has come up with.

So, what kind of car would actually be an asset? Mr. Kenta has an answer based on market data.

There is a reason why cars are good resale vehicles,” he says. Harrier and Alphard (……). These are the most popular cars on the high street. Even if their popularity in Japan has declined, they are still sought after in Southeast Asia, the Middle East, and Africa. Especially for Toyota SUVs and minivans, overseas exports are supporting the market. Used cars sold in Japan are traded as assets around the world.

Besides, design is also important. Cars that do not look old even after a model change are strong. The Harrier, for example, has such a high level of perfection that even if it becomes an older model, the price does not fall. Color and equipment are not to be underestimated. White and black are the most popular colors. In addition, the sunroof and high-grade equipment will surely increase resale value. The accumulation of small details can make a difference of several hundred thousand yen.

The last car he mentioned is the “king of resale.

Land Cruisers,” he said. Even if you drive it for several years, you can sell it for almost the same price as the purchase price. It is no longer a car, but a financial product. The Alphard and Vellfire are also overwhelmingly popular in Asia as “luxury lounges that run. These cars are already “assets to be ridden”. A car that can hold its value in any market is a true champion.

Riding around in popular cars for free

There is a “realistic exit strategy” that Mr. Kenta himself is practicing. This is the “one-year pass-on strategy” using a Jimny. If you have the chance, you should definitely consider buying one,” he says.

A new car is usually a one- to two-year wait for delivery, and used cars that can be driven right away are more expensive. In other words, even if you buy a new car and drive it for a year, you will get almost the same amount back when you sell it. You can enjoy it at zero cost. This is a great opportunity for you now, when demand is far exceeding supply.

Of course, there are conditions to the “zero cost” theory.

First, there are the XC grade for the Jimny and the JC grade for the Jimny Sierra, in black pearl, ivory, or medium gray. These three colors are strong. I don’t add options as much as possible. If you want to change the car in a short term, you can’t collect the navigation system and customization. Non-smoking, low mileage, and beautiful car management – these are the basics.

And when you sell it, you should not trade it in at a dealership, but let several companies compete for it. This alone can make a difference of several hundred thousand yen. Another important thing is to build a relationship with the dealers. To avoid being thought of as a reseller, tell them honestly that you want to enjoy different specifications. If they understand, they will be more willing to buy from you the next time.

The “used car bubble” of the COVID-19 crisis is completely over.

While there are strong cars like the Jimny, what kind of cars are likely to lose money? Mr. Kenta thought for a moment and then said, “First of all, cars that are not in demand overseas.

First of all, cars that have no overseas demand. For example, models that are distributed only in Japan, such as minicars and compact cars, are likely to fall in price quickly because they are not expected to be exported. Sedans, which used to be the high street, are now the age of SUVs and minivans. Resale is weak compared to SUVs even if they are the same brand.

Imported cars have a persistent image of high maintenance costs, and electric cars such as EVs and PHEVs are not recommended because the technology is evolving too quickly and the model will be out of production in three years. The price drop is also quite severe due to battery concerns.

Behind such “loss-prone” is a change in the market itself.

The “used car bubble” of the COVID-19 crisis has completely ended, and the market is now returning to normal. The semiconductor shortage has been resolved, and the market completely burst when the supply of new cars returned at the beginning of this year. Symbolic of this is family cars such as Voxy and Noah. A few years ago, there were cars with a residual value ratio of 120%, but now they are at a reasonable price. I think the market has returned to a healthy level. The time has come to look at the data and make a calm choice.

In a word, the market today is polarized. While “asset vehicles” supported by overseas demand are still strong, the market for vehicles that are only in demand domestically has not stopped declining. That is why we need to look at the numbers, assume a way out, and choose a car that we still “want”. This is the current standard for selecting a car.

Mr. Kenta concluded.

What I am talking about is not about money, but about peace of mind. If you know the resale value, you will not be in a hurry, and if you know the way out, choosing a car will be more enjoyable. Many people think only about how much they can buy a car for, but what is really important is how much they can sell it for. Reducing losses means increasing freedom.

Numbers may seem cold, but they actually protect people. A car is not an expendable item. If chosen correctly, it can be an asset that enriches your life. Knowledge of the pros and cons is a “practical kindness” to be proud of what you love.

Imagine “when you sell” before you buy. Just by doing this, your car life will surely look different.