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Toyota cars & SUVs have awesome resale value: Proven with examples

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The moment you take out the car from the showroom after invoicing, it drops in value by about 10%! That is a massive drop and more expensive cars have bigger drops. Toyota offers only a few models in the Indian market and all of them are known to hold their resale value in the market. We are only talking about the original Toyota products and not the rebagded ones that were recently introduced. Since these products are not old enough, we cannot comment on their resale values. In the TVC below, Toyota claims that its products hold more than 68% of value even after five years. Why is that? Let’s find out. Out of the original Toyota products in India, the Yaris is the most affordable model. The Innova Crysta, on the other hand, is the best-selling model from the brand. Here are examples of a few Toyota model that have retained a high value even after five years of ownership.

Toyota Innova Crysta

Toyota Innova Crysta is the best-selling Toyota model in India. In fact, it is one of the best-selling MPVs in the country. Toyota introduced the car in 2005 after replacing the Toyota Qualis. It has always been regarded as one of the most comfortable people movers in India. In 2016, Toyota priced the Innova Crysta at around Rs 12.6 lakh to Rs 13 lakh for the entry-level variants. Check out the three 2015 models here and their resale value in the used car market. Example 1, Example 2, Example 3.

Toyota Fortuner

Toyota Fortuner has ruled the market ever since its launch in the Indian market. Toyota launched the all-new Fortuner in the Indian market in 2009 and it became so popular that Toyota had to stop taking bookings for the car. In 20016, Toyota Fortuner carried a price tag between around Rs 24 lakhs and 27 lakhs. Here are the examples on sale in the used car market. These are the 2016 model of the car. Example 1, Example 2, Example 3.

Toyota Corolla Altis

Toyota is not selling the Corolla Altis in the Indian market anymore. However, it ruled the segment when it was available. Here is an example of a discontinued Toyota model that holds value even after discontinuation. Toyota sold it at around Rs 13 to Rs 17.5 lakh in 2016. Here are examples that show how it holds the value years after. Example 1, Example 2, Example 3.

So what makes the Toyota models retain their value?

Fortuner

Now there are several factors involved here that are responsible for the high resale value of Toyota vehicles. Let’s take a look at the few major reasons why Toyota vehicles retain such a high value even after so many years of ownership.

Trust in the brand

Toyota India started operations in 1997 and over the years, the care-free ownership stories of people have built trust in the market. There are numerous Toyota vehicles with lakhs of kilometres on the odometer and still working perfectly on the road. This is something that has built over the years and has made the Toyota brand a trustworthy brand in the Indian market.

Bulletproof engines

Toyota offers extremely reliable engines, which is why most car fleet owners choose the Toyota vehicles. The 2.8-litre GD-Series diesel engine is one of the best diesel engines in the world. As per Toyota, the GD Series engines return a high thermal efficiency of 44 per cent and the 2.8-litre engine that powers the Innova and the Fortuner in the Indian market return a high efficiency of 44%, which is extremely good. All the engines offered by Toyota are very reliable and do not break down easily.

Price of new vehicles

The price of Toyota vehicles has gone up a lot in recent years. For example, the price of the brand-new base variant of the Innova Crysta is Rs. 14.83 lakh, ex-showroom, Delhi. The on-road price makes comes out to be quite high. This creates a major demand for used Toyota Innova in the market, which in turn increases the price of the vehicle.

Long ownership

Most Toyota vehicle owners buy vehicles for life. The buyers of Toyota vehicles mostly keep the vehicle for a long time, which creates a low supply in the used car market and increases the overall price of the vehicle.

Spare parts

toyota altis resale value

The spare parts of Toyota vehicles, even if they are old and are replaced are not a major problem in India. The spare parts can be sourced without much problem, which makes the Toyota vehicles very easy to maintain even after years of ownership.

Reliable service network

Over the years, Toyota has built a trusted service network throughout the country, which gives a sense of trust to the buyers. Even while buying used vehicles, the wide service network and worry-free ownership experience induce confidence in the buyers.

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Toyota cars & SUVs have AWESOME resale value: Proof!

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It is said a vehicle loses 10-15% of its value as soon as it leaves the dealership. Over the course of years, the vehicle keeps on depreciating in value which itself depends on various factors. Now Toyota Kirloskar India is said to claim their Toyota cars hold up to 68% of their original value even after 5 years of usage. This means that the resale value of Toyota cars higher than the market average and its vehicles retain a high value even after years of ownership. So is this the case or not, Let’s find out. But before that, check out this TVC below where Toyota claims that its cars retain 68% of their value even after 5 years.

Coming to the Indian model lineup of Toyota, the most affordable car by the manufacturer here is the Etios hatchback while the range is capped by premium SUVs like the Land Cruiser. Toyota Innova Crysta is the largest selling vehicle of the Japanese manufacturer and is extremely popular in the Indian market. Here are a few examples of the best-selling Toyota cars that have retained near about claimed figure of resale value even after five years of ownership.

Toyota Innova

The Innova is one of the most popular MPVs in India and the Crysta, which is the latest iteration of the car that has been on sale since 2005, is regarded as a premium people mover. In 2014, the base variant of the Toyota Innova was priced at approximately Rs. 12.6-13 lakh, ex-showroom. Here are three examples that are more than 68% of the original ex-showroom price. Example 1, Example 2, Example 3

Toyota Fortuner

Toyota Fortuner was launched in 2009 and was one of the first vehicles for which a manufacturer had to shut down bookings due to excessive demands. The top-selling full-size SUV is still popular in the Indian market. In 2014, the Fortuner was priced around between Rs. 24 lakhs and 27 lakhs (approximate) in the market. Here are three examples that show the current value in the used car market of the brand. Example 1, Example 2, Example 3

Toyota Corolla Altis

Next up is the Corolla Altis, a car that belongs to a series that has been the global top-selling car-series till date. In India too, the Corolla series has been quite popular and the current model, which is called Corolla Altis is no different.  In 2014, the price of the Toyota Corolla Altis was roughly around Rs. 12 lakhs to Rs. 16.5 lakhs. Here are three examples which are 5 years or older and retain a minimum of 68% value of the ex-showroom price. Example 1, Example 2, Example 3

Why Toyota vehicles have such a high resale value?

Toyota Fortuner 2

Now there are several factors involved here which are responsible for the high resale value of Toyota vehicles. Let’s take a look at the few major reasons why Toyota vehicles retain such a high value even after so many years of ownership.

Trust in the brand

The year 1997 marked the beginning of Toyota in India. Over the years, the care-free ownership stories of people have built trust in the brand. There are numerous Toyota vehicles in the country and around the world with lakhs of kilometres on the odometer and they are still working perfectly on the road. This is something that is a result of years of quality check and control and not a few months of marketing strategy. No doubt then that Toyota as a brand is trustworthy in India’s market.

Bulletproof engines and build quality

Toyota Innova Crysta

Toyota is known to make extremely reliable engines along with the best build quality, which is why most of the car fleet owners choose the Toyota vehicles. The 2.8-litre GD-Series diesel engine is one of the most efficient diesel engines in the world returning a high thermal efficiency of 44 %. The same engine is also offered in the Innova and the Fortuner on our shores. The build quality of Toyota’s vehicles is also excellent which is the reason even decade-old cars by the manufacturer run without much rattling.

Price of new vehicles

Toyota vehicles like the Innova Crysta and the Fortuner have high asking prices and are expected to rise even higher in future. As an example, the price of the brand-new base variant of the Innova Crysta is Rs. 14.93 lakh, ex-showroom, Delhi. The on-road price of the base variant in Delhi is even higher at Rs. 17.53 lakh which means that the total price is quite a lot to pay. Now this creates a major demand for used Toyota Innova in the market, which in turn increases the price of the used Innovas too.

Long ownership

Most of the people who buy a Toyota car keep it for a long time. This means that there is a low supply of Toyota models in the used car market. This, on the other hand, increases the overall price of a used vehicle by a substantial margin

Spare parts

The spare parts of Toyota vehicles, even if they are old and are replaced are not a major problem in India. The spare parts can be sourced without much problem, which makes the Toyota vehicles very easy to maintain even after years of ownership.

Reliable service network

For a brand to play long innings, a trusted service network is among the key areas to be worked upon. Toyota focused on the same and over the years, the Japanese manufacturer has built a trusted service network throughout the country. This gives a sense of trust to the buyers. Even while buying used vehicles, the wide service network and worry-free ownership experience induce confidence in the buyers.