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 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?
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.
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.
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.
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.