What are some of the top things you consider when buying a brand-new vehicle? Engine performance is one of them, no doubt. The same goes for factors like fuel economy, convenience features, safety, and ride quality.
These are all-important qualities to keep in mind, but for more financially conscious consumers, a model’s resale value carries just as much weight.
If you’re a car buyer who’s careful about where you throw your money, or if you have plans to sell a vehicle somewhere down the line, this might interest you: OLX Philippines recently studied sales volume data covering 11 automotive brands, and found that pickup trucks, MPVs, and vans take longer than other types of vehicles to lose their value.
“A number of factors affect the pickup truck’s robust resale value,” says Manuel Roman, head of cars at OLX Philippines. “The versatility and reliability of pickups make them desirable vehicles. In the brand-new vehicle market, light commercial vehicles—one of which is the pickup truck—are popular choices among consumers. In the secondhand market, the demand for pickups remains high. Without an oversupply in the market, they keep their value well.”
Turns out utility plays a much bigger role in a car’s resale value than we thought. The study also found that MPVs keep their value longer than SUVs do: MPVs take 7.06 years to lose 50% of their value, versus just 5.04 years for SUVs.
If we’re talking about brands, data from OLX Philippines shows that Japanese nameplates like Toyota, Isuzu, Nissan, and Mitsubishi take longer to depreciate compared with other brands. Mitsubishi and Isuzu models take an average of 6.03 years before losing half their value, while Nissans and Toyotas take 6.02 years and 5.89 years, respectively.
Finally, the company added that on average, three-year-old cars still retain 62% of their value, while units that have reached five years of age only retain 52%. Once a car hits a decade, it retains only about 33% of its original value, OLX says.
It’s important to note that a car’s quality and badge aren’t the only factors that come into play when considering resale value. Demand plays a significant role, too. You can check out the infographic below for more details.