If you are in the market to purchase a new or used vehicle, it is important to consider the effects of depreciation as many can hold their value well, while some depreciate quite significantly. So, which cars retain their value when it comes to re-sale in South Africa?
According to AutoTrader, usually those cars that sell well new, will continue to sell well in a second hand market.
Volkswagen rules the roost, followed by Toyota. “If you want a quality vehicle with an excellent re sale value, a Volkswagen Polo or Polo Vivo is a sure bet,” AutoTrader said. “Not only will the resale value be excellent, but you will also sell these vehicles faster than any others.”
The Polo was among the most searched-for vehicle on AutoTrader in 2017.
Most models of Toyota still hold their value – including the Aygo, Corolla Quest, Etios, Avanza and Yaris, which boasts a good reputation and they’re perceived to be reliable too.
“Other options when it comes to affordable cars are the Kia Picanto and Hyundai i10,” said AutoTrader.
Sedans
Moving into the sedan sector, the Mercedes-Benz C-Class which was the second most searched for vehicle on AutoTrader in 2017, holds value better than its competitors, the Audi A4, and the BMW 3 Series, despite the latter topping the most searched for vehicle on AutoTrader last year.
In the hatch category, the best option is the Volkswagen Golf – the third most searched for vehicle on AutoTrader in 2017.
“Interestingly it would be a mistake to cross Volvo off your shopping list when looking for a premium car. The company is offering guaranteed buybacks and bolstering the value of its products in the process.
“The resale value is now fair, therefore a Volvo V40 hatchback could be worth considering,” the online automotive classifieds advertising website said.
For luxury vehicles – with a price tag of over R1 million – “there are no stars when it comes to resale value”.
“If you’re spending over R1 million on a car, you will probably lose around R230,000 as you drive it off the showroom floor,” said AutoTrader.
However, the car that loses the least value in this segment is the Mercedes-Benz S-Class.
When it comes to bakkies, the Toyota Hilux has no rivals in the race for resale value, according to AutoTrader. The resale value of the Hilux, AutoTrader’s fourth most searched-for vehicle in 2017, cannot be beaten.
The Ford Ranger, AutoTrader’s fifth most searched-for vehicle in 2017, holds its value far better than the Isuzu, Nissan, Volkswagen and Mitsubishi bakkies.
Read: The types of used cars that will sell for more in South Africa
Loading ...
Join the conversation Autoload comments
Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban.