Everyone wants to find a car that doesn’t depreciate – sadly this is pretty rare. There are some options though for people looking for cars that depreciate slower than others. Buying a car that depreciates slowly means that it could hold on to its value for longer and could benefit you if you are looking to resell it within a short period.
What is Car Depreciation?
This is the difference between the total amount you paid for your car, and the total amount that you receive upon selling it or trading it in. The highest percentage of a car’s depreciation takes place within its first year of ownership. Generally, car depreciation reduces slightly after three years.
Many people think that car depreciation is simply a fact of life however there are some car models that can really hold on to their original value, even after several years.
How To Avoid Car Depreciation:
This isn’t always possible however you can certainly find ways to purchase cars that depreciate slower than others.
Think about the brand of car that you are buying – this has a big effect on resale value as people will want cars that are common in Australia, have good customer service in Australia and whose parts and repairs are easy to access. Generally, brands popular with Australian buyers will depreciate slower than imported cars or those that are less well known.
6 Cars That Depreciate Slowly
- Toyota Corolla:this is a popular car not only in Australia but across the world. It’s well known for being reliable and well made so their cars have a good second hand value if you’re looking to resell and want to avoid car depreciation.
- Honda CR-V:in recent decades, more Australians than ever have been buying SUVs and utes. This model by Honda has been popular for a long time and is a trusted favourites of both adventurers and urban families. It familiarity and reputation means that its depreciation is usually slower than other models.
- Volkswagen Polo:another car that is popular across the world, this has a depreciation rate of around 40{87814d17a11ce87497407832d112abda33ddc39e3499e7eb942e9bcd49a9f441} after three years. It’s very fuel efficient which can help to make its resale value high and it’s an attractive option for both young and old drivers.
- Porsche Cayenne:it’s ironic that generally the more you spend on a car, the quicker they depreciate. The Porsche Cayenne though manages to balance its status as a luxury car with a low depreciation value of just 26-32{87814d17a11ce87497407832d112abda33ddc39e3499e7eb942e9bcd49a9f441} after 3 years. Those looking to spend up to $100,000 on a new car should consider the Porsche Cayenne if they’re concerned about depreciation.
- Honda Jazz:this is an unassuming car that isn’t fancy but really does the job and people love it for that. It’s got a high resale value of up to 74{87814d17a11ce87497407832d112abda33ddc39e3499e7eb942e9bcd49a9f441} of its original value after 3 years. New drivers and elderly road users both seem to favour this model for its ease of movement.
- Mazda 3:not only is the Mazda 3 voted one of Australia’s most popular cars year in year out but it also retains its value incredibly well. You can go for all sorts of added extras when purchasing a Mazda 3 but don’t panic if you don’t – these won’t affect its depreciation or resale value.