The results of the recent inaugural WesBank Fuel Economy Tour are in – so we know which vehicles are super economical. But how do those vehicles fare in the resale stakes?
According to Darryl Jacobson, managing director of True Price, motorists often consider fuel economy when buying a car. “It’s right up there, along with the purchase price, running costs, overall cost of ownership as well as service and maintenance costs. Most motorists simply forget to take resale value into account. This is a pity, given the fact that depreciation is the single biggest cost factor when it comes to vehicle ownership!” he contends.
So, which cars have both great fuel consumption and good resale value too? True Price has data pertaining to thousands of vehicles sold on auction on its system. This data is utilised to provide free vehicle evaluations to South African motorists. The data can also be used to provide highly accurate resale values, as Jacobson explains. “Using the data gathered on bank repossession auctions, we are able to generate a statistically valid resale figure. It is expressed as a percentage of the original retail sales price,” he says.
Here’s how the top four cars in the Fuel Economy Tour fare in the resale value stakes:
- Renault Captur: 67.21%
A small sports utility vehicle (SUV) boasting distinctive looks, Jacobson says that this vehicle has a reasonable resale value thanks to a combination of logical and emotional factors. “Logically, it offers a reasonable amount of space for space for passengers and luggage. On an emotional front, people love its French flair. Personally, I have always loved the look of the Captur, and this passion has become contagious,” he says.
- Toyota Aygo: 75.61%
According to Jacobson, the Aygo may have come second in the Fuel Economy Tour but it is the clear winner when it comes to resale value. “Reliable, safe and boasting terrific dealer support, the Aygo’s dramatic styling sets it apart from its competitors. When I was conducting auctions fulltime, there was always huge hype when an Aygo came up for auction; you could just about guarantee top price. The support was immense, and it appeals to a wide audience,” he reveals.
- Nissan Qashqai: 62.45%
The best-selling crossover in Europe, Nissan’s Qashqai is quiet, practical and comfortable. According to Jacobson, it is fairly popular on auction – although it’s certainly not in the league of the Aygo. “It’s more popular with the private sector than the trade (because trade buyers are aware of its resale value). Significantly, it is popular with all age groups,” he contends.
- Renault Duster: 64.95%
According to Jacobson, the Duster is extremely well priced and offers great value. “It looks good and it’s super comfortable too. From humble beginnings the Duster has obviously gained traction and popularity (along with the Renault brand). It now appeals to both the trade and private sector,” he says.
Based on the True Price findings, Jacobson says that the message is clear: if you want to buy a vehicle that is economical and also boasts a good resale value, the Aygo must be the first choice. “It truly offers the best of both worlds,” he points out.
According to Jacobson, resale value should be one of the single most important factors to consider before purchasing any vehicle. “The majority of vehicles are depreciating assets. The exception to this rule is a classic or collector´s car. The longer you own a vehicle, the less it will be worth. As I’ve said, depreciation is the single biggest cost factor when it comes to vehicle ownership. It is far more significant than the cost of servicing and maintenance, for instance. Yet some car buyers forget about this important aspect of vehicle ownership when making their choice,” Jacobson points out.
The consequences of ignoring vehicle resale values can be dire. “You will get a much lower trade-in price when the time comes to sell. That much is obvious. However, consider also the fact that the vehicle could be stolen or written off. Your insurers will pay you a market-related value … and resale value plays an important role here!” Jacobson concludes.
- Motorists wishing to establish the value of their vehicles can visit www.trueprice.co.za and request a FREE evaluation.