The Toyota Hilux and Ford Ranger are the two top selling bakkie brands in South Africa, by some distance.
However, one vehicle stands out when it comes to resale value.
This is according to Darryl Jacobson, managing director of True Price, who notes that the company’s data shows that the Toyota Hilux has the best resale value in South Africa right now.
This is especially the case when considering high-mileage models, he said.
“We analysed 2015 and 2016 Hilux and Ranger models in three different mileage categories: zero to 100,000 km, 100,000 to 200,000 km and over 200,000 km. The Hilux outperforms the Ranger in all three categories.”
True Price’s data shows that:
- In the zero to 100,000 km category, the Hilux retains 73% of its original price while the Ranger sells for 69% of its original price.
- In the 100,000 to 200,000 km category, the Hilux retains 62% of its original price while the Ranger sells for 56% of its original price.
- In the over 200,000 km category, the Hilux sells of 68% of its original price while the Ranger delivers a 53% return.
According to Jacobson, resale value should be one of the single most important factors to consider before purchasing any vehicle.
“The majority of vehicles are depreciating assets. The exception to this rule is a classic or collector´s car,” he said.
“The longer you own a vehicle, the less it will be worth. In fact, depreciation is the single biggest cost factor when it comes to vehicle ownership. It is far more significant than the cost of servicing and maintenance, for instance. Yet some car buyers forget about this important aspect of vehicle ownership when making their choice.”
Why does the Hilux retain its value better?
Jacobson explained that while the Ranger and Hilux are both great bakkies, the Hilux outperforms the Ranger in the resale stakes for a number of reasons.
The first is brand image, he said. “The Toyota brand is one of the most loved and trusted in South Africa. Motorists believe that they are purchasing reliability and peace of mind when they opt for Toyota,” said Jacobson.
The second is aftersales service. “Toyota dealers have an outstanding reputation for delivering good service at fair prices. Furthermore, the dealer network is vast, meaning that you don´t have to look long and hard to locate a dealer. Spare parts are also readily available.”
These factors mean that it will be hard for the Ranger to outperform the Hilux – when it comes to sales and also when it comes to resale value, he said.
‘The Ranger has been widely praised – both by members of the motoring media and by the buying public in this country. But Toyota´s long-standing legacy and reputation will be difficult – if not impossible – to usurp in the near future.
“Accordingly, I predict that the Hilux will reign supreme in the resale stakes for the conceivable future”.