There are many factors to consider in deciding on the right car for you, and near the top of the list for many people is resale value. In Australia, certain brands and body types have a strong reputation for retaining value. That said, general predictions of popularity are far from perfect. The astute car buyer should diligently check the model and market before buying.
Which car brands retain the most value?
There are some recognised brands that consistently shine at resale. Based on data from Glass’s Guide, RedBook, and selected used car dealers, caradvice.com.au has reported on the most in-demand brands on Australia’s used car market as of 2020. Leading the charge is Toyota, attracting second-hand car buyers across a range of models. Mazda and Subaru also top the list as trusted brands, accompanied by other popular mainstream car makes including Hyundai, Kia, and Volkswagen. In the luxury class, Land Rover and Porsche are some of the makes in premium demand.
In general, tried and trusted brands tend to do better at resale than the latest brand on the block. Brands that have recently entered the market, such as the Chinese brands MG and Haval, don’t yet have the big brand status to rival contenders such as Toyota and BMW. Only time will tell whether this trend will continue, as fledgling brands continue to gain traction on Australia’s roads.
Do some car body types hold value better than others?
It depends on shifting consumer demands and auto trends. Based on data collected by car sites caradvice.com.au and whichcar.com.au, the SUV and larger dual-cab 4×4 ute categories have climbed in popularity in recent years. The sturdy and spacious SUV is strong at resale in a range of sizes and across luxury and mainstream markets, from the compact Audi Q3 to the mighty Toyota Land Cruiser. Among tradies, the Toyota Hilux is a job-site icon, and quality used models are sound sellers.
What factors determine your car’s resale value?
In general, there are some useful tips to keep in mind to help you choose a car that will deliver on the road and at resale. One of the typical factors for selling used vehicles is that cars with low mileage will sell better than cars with high mileage. Fuel efficiency is a selling point for the eco-friendly buyer on a budget, and speedsters, like the Audi RS3 Sportback, don’t just perform on the road, but also at resale.
Luxury sells. Although hefty retail price tags will inevitably see a steep initial depreciation, the desirable luxuries that define premium brands like Mercedes-Benz and the lavish AMG range tend to boost resale appeal. Keep your car clean and in excellent condition, particularly inside the cabin. It’s trickier to rescue a damaged interior than it is to disguise a paint scratch. Coveted classics, like the 1970 Ford Escort Twin-Cam rally car sedan, also have strong resale prices.