Which cars have the best resale value?
Do you want to buy a car with an outstanding resale value? You will be very surprised to see which cars perform best in the resale stakes in South Africa…
The best car in the country – in terms of resale value – is the Renault Kwid! This has been revealed by Darryl Jacobson, managing director of True Price, who adds that many of the cars with terrific resale values may well come as a surprise.
True Price has data pertaining to thousands of vehicles sold on auction on its system. This data is utilised to provide free vehicle evaluations to South African motorists. An analysis of this data has revealed some extremely interesting findings, as Jacobson explains. “In order to determine which passenger cars have the best resale value, we analysed all our data and came up with a list of the top 10 cars. This list is based on actual prices achieved on auction. The figures pertain to the percentage of original selling price that has been achieved on auction,” he explains.
Jacobson stresses that resale value is an essential consideration when buying a new car. “Depreciation is one of the new car buyer’s greatest expenses. It is absolutely vital to take resale value into consideration before signing on the dotted line,” he says.
Assuming that you follow Jacobson’s advice (and heed the importance of resale value), these are the cars that should be on your shopping list:
1. Renault Kwid
According to Jacobson, this is a cheap and cheerful little runabout, which is faring well in terms of new car sales too. “South Africans are more budget conscious than ever before. And, when shopping on a budget, the Kwid has to be a consideration,” he says.
2. Toyota Etios
According to Jacobson, Toyota is constantly top of the resale pops. “The Etios – which comes in hatchback, sedan and a crossover-inspired ‘Cross’ guise – is no exception. It is reliable and it is supported by a massive dealer network,” he comments.
3. Volkswagen Polo
Jacobson describes the Polo as “a South African icon” and he points out that this vehicle is massively popular in both the new and used vehicle market.
4. Kia Picanto
The Picanto is a terrific little city car that has a decent interior, good road manners and attractive styling. “Running costs are reasonably low too and it comes with a comforting five-year/unlimited kilometre warranty. These factors have combined to make it a sought-after vehicle,” says Jacobson.
5. Kia Rio
The Kia Rio is one of the most popular hatches in South Africa. Jacobson maintains that Kia is favoured by used car buyers because of its design. “This can be attributed to Peter Schreyer, who joined Kia in 2006 as its head of design. He took the brand which, until then, had been a budget vehicle through and through, and transformed it into a highly desirable commodity. Kia has also been the recipient of numerous quality accolades, and this sits well with both new and used car buyers,” he notes.
6. Mercedes-Benz A-Class
Solid, quiet, well-built and offering a brilliant ride, the Mercedes-Benz A-Class is a real quality act. “It is also extremely safe, as reflected by the fact that it recently won the Best Safety Award at the 2019 What Car? Car of the Year awards. It is also a finalist in the 2019 AutoTrader South African Car of the Year,” Jacobson points out.
7. Volkswagen Golf
The benchmark in its sector, the Golf is a perennial favourite of South African motorists. “It is a premium vehicle that is safe, superbly built, spacious and elegant. It’s one of those vehicles that has been extraordinarily popular for decades, and its popularity shows no sign of waning,” comments Jacobson.
8. Datsun Go
The Go is yet another budget car and Jacobson says that, much like the Kwid, it is proving very popular amongst new and used car buyers. “Since late last year, when driver and passenger airbags and ABS were made standard across the entire range, the Go has become an even more enticing proposition,” he comments.
9. Volkswagen Up
Jacobson says that the Up is a desirable and stylish city car, and this is reflected in the vehicle’s resale value. “With many cars in this price range, one needs to lower expectations. Not with the Up. Is it inexpensive? Yes. But, in this case, cheap is most definitely not nasty,” he contends.
10. Mercedes-Benz C Class
Jacobson says he was not surprised to see the C-Class fare well. “It has long been extremely desirable in the used car market. It is always hard to say why any car fares well in the second-hand market; it is thanks to many factors – from running costs and dealer service to supply and demand. However the C-Class is normally snapped up really fast on auction,” he reveals.