There are some cars that are very desirable and hence retain their value, even after a few years of using them. So much so that after three years, if you try to sell them, you stand to make anywhere between 68% to 90% of the price you paid for them!
In September 2016, CarWale.com produced this list of twenty cars that tell you which cars will do this. Here is the full list below. The figures are in percentages, the original price you paid for the car being 100%.
What can a car buyer learn from this?
Low maintenance costs: Whether buying new or used, this is critical. Cars in this list would still be covered under warranty for the first few years – however, they are sold in the used car market at such high prices because of their reliability and low maintenance. Or, even when you need to replace parts, parts prices are low for these cars.
Brand name and popularity: There are a few brands that are known to be niggle free, reliable and are popular. These brands will certainly have a higher resale value than other such brands. Having a popular car also means easy availability of parts. If the car is popular, the service stations will have parts for the car. If you decide to go the after market route as well, it will be easy to find parts for a popular car. Buy these cars new, and you will be happy during your ownership as well as when you get rid of them.
Large dealer network: Large number of dealers also helps improve your resale value. Having a car with lesser issues and one where you can find a workshop easily adds to the value of the car.
Here are a few examples:
The Innova is a highly desirable car in the Indian market. Why? It is practical, spacious, comfortable and reliable. It is hence India’s much loved used vehicle. It retains close to 90% of the value after 3 years which is commendable.
This basically means, if you own and Innova and keep it in good condition, you may end up getting a price close to what you paid for it. The other reason for the massive demand is that there is no vehicle in that segment which is as good as the Innova. Yes there are other MPVs, but not that size and not as premium as the Innova feels.
Similarly, the Toyota Fortuner is also a popular car that outsells all its rivals put together. Due to this popularity, it retains its value by as much as 85%. Most Marutis and Hyundais, the Honda City, the Hyundai Verna and India’s compact SUV – the Ford EcoSport all are visible in the chart.