Top cars with best resale value revealed
Demand for high-riding utes and SUVs is driving record growth in the used car market.
Fuelled by coronavirus pandemic-driven demand, owners of popular models such as the Toyota LandCruiser and HiLux are shedding less than 20 per cent on their new investments.
And for those buying second-hand vehicles, returns can even be positive - some makes are commanding more now than when originally purchased.
General manager for car valuation company RedBook.com.au Ross Booth said owners of popular models "can make a lot of money by selling their used car today".
"Cars are normally a depreciating asset, but at the moment they're not due to demand and supply fluctuations," he said.
"We're going to see prices being high for some time."
Fresh data from RedBook and fellow valuation outfit Glass's Guide shows Toyota tops the ute, large SUV and small car categories for retained resale, three years after the vehicles left the showroom.
Tesla's Model 3 retains the strongest value for sub-$100,000 luxury cars, Subaru's XV leads the small SUV field and Mazda's CX-5 is ahead of Subaru and Toyota in the popular family SUV class.
Vic Moor, manager of Glass's Guide for NSW, Queensland and the ACT, said "used values are doing very strange things at the moment".
Limited supply of new cars, coupled with overseas travel bans and an increased reluctance to use public transport have contributed to strong resale values.
Former Wallabies fullback turned broadcaster Greg Martin said his V8-powered 2015 LandCruiser ute was tough to beat - both on the road, and in the family budget.
"It cost a fair bit, but I have no doubt I could sell it for the same money at least," Mr Martin said.
"I don't think I'll ever sell this car, I love it. They go forever.
"It's just a superior ute."
The Datium Insights-Moody's Analytics Used Vehicle Price Index showed used vehicle prices increased by 35.8 per cent between January 2020 and January 2021 - the highest amount on record.
Mr Booth said that figure was about 10 per cent higher than RedBook's estimate.
A survey of Australian motorists conducted by YouGov for vehicle subscription service CarBar shows 22 per cent of adults are considering a new car this year, with 34 per cent in the market for a used vehicle.
But financial factors such as depreciation are weighing heavily on customers, with 41 per cent of survey responders saying they do not feel in control of car expenses.
Carbar chief executive Des Hang said "transport and car costs are still a key consideration for Australians despite the hardship they endured in 2020".
"The typical Australian loses around $5131 per year on a new car, factoring in depreciation, insurance, maintenance and repayments," he said.
"Almost half of Australians also indicated they do not feel in control of their car expenses."
Originally published as Top cars with best resale value revealed