Avoid the worst of the depreciation curve with these cars
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
Image courtesy of caradvice.com.au
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.
Image courtesy of caradvice.com.au
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% |
Image courtesy of caradvice.com.au
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% |
Need a car loan?
Don’t settle for just any car finance. Get a car loan that’s suitable for you.
At Rapid Finance, we connect drivers with the right finance solutions.
Find out more on our car loans page
SUV and 4WD
Image courtesy of caradvice.com.au
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
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% |
Image courtesy of caradvice.com.au
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% |
Calculate the cost of your loan
Get an estimate of your car loan costs with our car loan calculator.
It’s fast and easy to use. You could get your estimate in minutes.
Try the car loan calculator
Luxury Cars
Image courtesy of caradvice.com.au
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% |
Image courtesy of caradvice.com.au
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?
A lower car loan interest rate could save you a lot in the long run. So, don’t settle for what the car dealer offers. At Rapid Finance, we could help you to get a better deal on your car loan.
Our car loan specialists have been helping drivers find suitable finance for more than 17 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 vehicle finance and car loans page or call 1300 467 274