The Rs 10 lakh – Rs 15 lakh sedan market was earlier the preserve of three carmakers: Honda (Civic), Toyota (Corolla) and Skoda (Octavia/Laura). Honda and Toyota topped the sales charts by turns. Skoda seemed happy with it’s somewhat premium pricing and number three spot.

best resale value
So if you bought one of these three years ago, then which one would get you the best value in the used car market? The Toyota Corolla tops the charts—not surprising since Toyota cars across segments tend to hold their values well.

A three-year old Corolla H1 with 30,000 kms on the meter should fetch you Rs 5.5 lakh in the used car market. A new Toyota Corolla Altis 1.8 J costs roughly Rs 10.6 lakh ex-showroom in Delhi.

That means it loses Rs 5 lakh or about 48 percent of its value in three years. So, even the top car here loses nearly half its value in three years. In the premium hatchback and Rs 7-10 lakh sedan segments, top cars lose less than 40 percent of their value.

See the table below for the value of the three premium sedans after three years, based on certain assumptions.

[table id=709 /]

The other two cars in our list; the Honda Civic and Skoda Laura Ambiente, lose 51 and 55 percent of their values respectively.

Why is depreciation higher in this segment?

One, there has been a significant shift towards diesels. So the demand for petrol cars—both new and old—has gone down significantly.

Two, there are new versions or cars that have made these cars “old” in addition to being “used”. For instance you can get yourself a Chevrolet Cruze or Volkswagen Jetta or even a Renault Fluence these days and all these cars weren’t there three years back. The Corolla has undergone a facelift is now called the Corolla Altis. The Laura too has a new model line-up with a newer one expected soon.

So there are two takeouts: One, if you are buying a new car, brace yourself for sharp depreciation. Two, there are some great cars to be had for a good price.

7 COMMENTS

  1. Usual trend seen are ‘sticking’ onto Toyota, ‘OK’ with Honda and ‘staying away’ from Skoda ..

  2. Well petrols usually lose their value faster than diesels, in India. What is significant here is the Skoda preserving its value pretty close to the Japs. Not bad.

  3. The reason Skoda does badly here is that parts are expensive. for example the headlights its cost Rs.22,000. my neighbour’s car has damaged headlight they haven’t replaced it for months now and claiming insurance will drop the value of the car. After 50k kms due to wear and tear parts need replacement and skoda proves expensive here. There are people who have driven Toyota vehicle like Qualis for

  4. Honda city stands high on resale,in fact the most best seller in the used market simply for its quality and mileage when compared to rivals.Sx4 would stand on diesel version

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