A car is generally considered a depreciating asset. Yet, they do return at least some value on resale. Before buying a vehicle, one deciding factor that often gets overlooked is the car resale value. It can make a significant difference when one finally upgrades or sells your vehicle. This blog is all about understanding why some car brands hold their value better than others and can help one make a more informed decision that benefits your wallet in the long run.
Car Resale Value Defined
Car resale value is the amount the vehicle gets you from the market when you sell it after owning it for a certain time.
A high resale value corresponds to maintaining much of their original purchase price. In essence, such vehicles depreciate less over time.
Why Some Car Brands Have a Strong Resale Value
Several factors that contribute to certain car brands retaining their value better:
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- Brand Reputation: Brands that produce reliable and resilient vehicles have a stronger resale value. Car brand reliability decides the resale value.
- After Sales Services: After sale services and manufacturer maintenance of a vehicle decide the temperament of the market towards the used car.
- Spare Parts Availability: Used vehicles tend to require more part replacement, hence availability of Original Equipment Manufacturer spare parts is essential.
- Fuel Efficiency: Vehicle brands with higher fuel efficiency have stronger resale value than their counterparts.
- Demand in the Market: Cars from brands in high demand in the second-hand market retain their value better.
How to Choose a Car with High Resale Value
Some tips to consider while one looks out for car resale value:
- Research Popularity Trend: Look for models that consistently stay in demand in the used car market.
- Consider Brand Reliability: Prefer reliable and reputable brands known for their low maintenance costs. Vehicles from such brands tend to have a slower depreciation rate.
- Future Trends: Take future trends into account. Shift to electric vehicles is one such example.
- Follow Depreciation Rates: Focusing on depreciation graphs of the car models one is interested in can help determine the preferred vehicle with a slower depreciation rate.
Best Car Brands for Resale Value in India
Following the current automotive trend, these are some of the best car brands for resale value in 2024:
- Toyota: Toyota cars, the Innova and Fortuner are popular for reliability and durability in the used car market, ensuring a high resale value.
- Maruti Suzuki: Maruti Suzuki cars are known for their extensive service network and affordable maintenance.
- Honda: Honda is known for engine efficiency and longevity, making Honda cars popular among used car buyers.
Must read: New Honda Amaze to Launch by the End of 2024
- Hyundai: Hyundai cars are affordable and feature extensive, which accounts for a stronger car resale value.
Conclusion: Making the Right Choice for the Future
Car resale value can be critical when one plans finances. More so in our domicile India, where selling cars after a few years to upgrade to a newer model is common.
Choosing a car brand renowned for its strong resale value can ensure one gets the most out of their investment.
Whether one plans to own the vehicle for a few years or looking to upgrade sooner, understanding resale value can help make a truly informed decision, benefitting both now and in the future.
Don’t forget that the best car brands for resale ensure reliability, support, and affordability, making sure that your vehicle holds its value well over time.