Avoid the worst of the depreciation curve with these cars

Rapid Finance on 27 September 2016

Car depreciation. It’s something that drivers don’t often talk about until it comes time to sell their vehicle. It’s at this point that the issue of depreciation can become a sore point.

On average, new vehicles depreciate 19 percent during their first year on the road, with another drop of 15 percent in the following second and third years.

That means the vehicle which you paid $40,000 for in 2016 could be worth just $20,000 come 2019. That’s a 50% drop in value, should you choose to sell your formally new car in three years’ time.

However, not all vehicles depreciate at the same rate. So, if you intend to sell within a few years, it’s vital that you choose a car with good resale value. Here are eight options, from which to choose.

 

Small cars

Toyota Corolla

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Toyota Corolla

There is no shortage of demand for the humble Toyota Corolla, after all, it is the highest selling car in the world. Coupled with the car’s high build quality and reputation for reliability, used car buyers trust Corollas more than just about any other vehicle on the road. This demand and trust means that buyers are willing to pay more.

Example model

2013 Toyota Corolla Ascent

Price when new

$19,990

Estimated resale value

$12,700 – 14,500

Depreciation

27 – 36%

Note: New sale prices and estimated resale values are based on publicly available information sourced from redbook.com.au. Information accessed September, 2016.

 

Volkswagen Polo

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Volkswagen Polo

The price of petrol can greatly affect your car's resale value. At times when fuel is fetching well above a dollar a litre selling a thirsty V8 or high performance car can be difficult.

That won’t be the case with the fuel efficient Polo. Combined fuel consumption for 2016 models is just 4.8L/100km and that’ll help you to sell, whatever the price of petrol.

Example model

2013 Volkswagen Polo Trendline 6R

Price when new

$16,900

Estimated resale value

$8,900 – $10,400

Depreciation

38 – 47%

 

Mazda 3

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Mazda 3

The Mazda 3 is Australia’s third most popular vehicle coming in just behind the Toyota Corolla and Hilux. It’s stylish, fun to drive and available with a range of great optional extras.

Note: extras like satellite navigation may be excellent for your daily commute, but the money you spend at purchase may not necessarily translate into a higher resale value.

Example model

2013 Mazda 3 Neo Manual

Price when new

$20,330

Estimated resale value

$12,400 - $14,200

Depreciation

31 – 39%

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SUV and 4WD

Honda CR V

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Honda CR-V

Australians are flocking to SUVs in record numbers. While at one time the sedan was the family car of choice, now the SUV reigns king in the family car market.

And, few cars are as popular or as well loved as the Honda CR-V. Treat your CR-V right and you could expect to see a decent price when it comes time to sell.

Example model

2013 Honda CR-V VTi

Price when new

$27,490

Estimated resale value

$16,900 – $18,900

Depreciation

31 – 39%

 

subaru forester

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Subaru Forester

We recently recommended the Forester as an ideal car for young drivers. We noted that it included the features drivers enjoy with the safety equipment they need.

It’s not surprising then that demand for this car remains strong on both the new and used car markets. The Impreza too tends to hold its value well.

Example model

2013 Subaru Forester 2.0i S4

Price when new

$29,990

Estimated resale value

$20,500 - $22,800

Depreciation

24 – 31%

 

Toyota Landcruiser GXL

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Toyota Landcruiser GXL

If you’re going to go with a big 4x4 and you have the money, it’s hard to go past the Toyota Landcruiser. Like the Corolla, the Landcruiser’s reputation for reliability precedes it.

Also, the GXL turbo-diesel engine is one of the most trusted engines on and offroad. Sure, you’ll pay a premium to buy one, but that’ll carry over to your resale value.

Example model

2013 Toyota Landcruiser GXL

Price when new

$88,990

Estimated resale value

$60,300 – $65,400

Depreciation

26 – 32%

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Luxury Cars

Range Rover Evoque

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Range Rover Evoque

Launched in 2011, the Evoque has gone down a storm worldwide. Its unique styling and classic Range Rover luxury have made it a hit, particularly within the more well-to-do suburbs.

And, demand isn’t abating if current resale values are anything to go by. Like the Landcruiser, the diesel powered models may be the smart buy.

Example model

2013 Land Rover Range Rover Evoque eD4 Pure

Price when new

$49,995

Estimated resale value

$34,800 – $38,100

Depreciation

24 – 30%

 

Porsche Cayenne

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Porsche Cayenne

Should you be looking to pay upwards of $100,000, there is no shortage of luxury cars from which to choose. For that price, you could get a BMW M3 or Mercedes Benz C63 AMG, both of which offer decent resale values.

For one of the very best resale values, though, it’s hard to beat the SUV sports car hybrid from the Porsche, the Cayenne.

Example model

2013 Porsche Cayenne 92A

Price when new

$100,200

Estimated resale value

$68,200 – $73,900

Depreciation

26 – 32%

"If you intend to sell within a few years, it’s vital that you choose a car with good resale value."

Want to finance a car on this list?

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Our car loan specialists have been helping drivers find suitable finance for more than 15 years. And they may be able to help you too, even if you have a less than straightforward credit history.

To find out more visit our car loans page or call 1300 467 274