Car

Cars sold in Indonesia are very expensive. It costs about 50% of the price of a nice house. (In Canada, a car costs about 7% of a nice house.) When I have engine oil changed yesterday, I learned a new Isuzu Panther costs about Rp 270 million. That's almost USD 32,000! With that money one could get a nicer VW Jetta with a turbo diesel engine.

Prices of same cars in Indonesia and Canada are identical, yet the cost of living is a lot cheaper in Indonesia. I can only conclude that the government of Indonesia taxes too much for each imported car and motorcyclists are the smart people on the road. (Where does that tax money go, by the way?)

We use a beat-up 1999 Isuzu Panther. It has a great fuel economy (13 km for 1 liter). It is great during traffic jam since nicer cars don't have the guts to tangle and lock horns against it. Toyota cars, in comparison, have a really bad fuel economy (8 km for 1 liter). I don't know why Indonesians still buy Toyota despite this poor fuel economy. I'd rather buy a Hyundai since it is cheaper and has a better fuel economy.

Buying a new car is a losing proposition. The only strong reason I have heard for doing such is that a new car is new: there is no hidden mechanical problems or other problems. But that is bullshit. I bought a new car back in 2002 and I was afraid of exactly these potential problems. I then bought a used 1998 car. Both cars never gave me serious problems. The only difference is that the new one cost me CAD 15,000 more. It all depends on how I select the used car I want to buy. I can pay a mechanics I trust to check. I can run through the car thoroughly to see if it's been flooded in or its chassis had been welded after crash.

Indonesians worry about depreciated values of their cars. That's why Toyotas and Hondas still dominate the market. Personally though, if I feel I might have to sell a car in 3 years after I buy it, then I cannot afford it. A car is worth buying if I can use it for at least 15 years. Otherwise, it is not worth buying at all.