Select Page

Mercedes C-Class tops the resale charts but no luxury sedan can compete with a bakkie

Mercedes C-Class tops the resale charts but no luxury sedan can compete with a bakkie

An analysis of data on thousands of used car sales has revealed that the Mercedes C-Class retains its secondhand value best against its closest luxury competitors, the BWM 3 Series and the Audi A4.

None of the mid-sized luxury sedans however, keep their value as well as a bakkie indicating that the latter’s value is determined by its utility while the fancy sedans may be based more on emotions.

The statistics came from True Price, a South African digital platform that captures sales transactions on thousands of vehicles changing hands.

According to Darryl Jacobson, managing director of True Price, they conducted a comprehensive analysis of data generated by their system to determine the second hand value of luxury sedans. “True Price has data pertaining to thousands of vehicles sold on auction on its system. This data is utilised to provide free vehicle valuations to motorists,” he said.

Jacobson said they opted for the biggest possible sample size. “We looked at all the Mercedes-Benz C-Class, BMW 3 Series and Audi A4 models on our system – from years 2002 to 2017, both years inclusive. This represents an extremely significant sample size. Then we calculated what percentage of its original selling price these three luxury sedans achieve on auction.”

The findings are fascinating. The Mercedes-Benz C-Class is the clear winner and there is a really tough battle for second place with the Audi A4 just edging ahead of the BMW 3 Series.

In the zero to 100,000 km category, the C-Class achieves 62% of its original price while the 3 Series achieves 53% and the A4 gets 56%. In the 100,000 to 200,000 km category, the C-Class retains 41% of its original price versus the 3 Series at 34% and the A4 at 35%. In the over 200,000 km category, the C-Class sells for 30% of its original price while the 3 Series delivers a 27% return and the A4 clocks in at 26%.

In another recent True Price comparison of the resale value of Toyota Hilux and Ford Ranger bakkies, it emerged that low-mileage bakkies keep about 70% of their value while only the Mercedes among the luxury sedans managed to reach 62%, the other two both missing the 60% mark.

Jacobson said many people do not realise that new cars lose value the minute that they are driven out of the showroom and then, unless they are exotic cars, they continue losing value throughout their lives. “The simple fact of the matter is that most vehicles are depreciating assets!”


 

About The Author

SADC Correspondent

SADC correspondents are independent contributors whose work covers regional issues of southern Africa outside the immediate Namibian ambit. Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.