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Surprisingly, the Renault Kwid leads the SA market for resale value

Surprisingly, the Renault Kwid leads the SA market for resale value

According to statistics compiled from thousands of sales at second-hand auctions in South Africa, Volkswagen is the only local brand with three models in the top ten cars that best keep their resale value.

Listing the top ten cars in terms of resale value, a website that tracks vehicle auction data, True Price, revealed this week that only six marques fill the top ten spots. Following Volkswagen are Mercedes Benz and Kia with two models each and the rest comprising Renault, Toyota and Datsun with one each.

True Price Managing Director, Darryl Jacobson said the data offered some surprising results for instance, the number one vehicle to retain a large part of its value is the Renault Kwid.

“In order to determine which passenger cars have the best resale value, we analysed all our data and came up with a list of the top 10 cars. This list is based on actual prices achieved on auction. The figures pertain to the percentage of original selling price that has been achieved on auction,” he said adding that resale value should be an important consideration for any buyer of a new vehicle.

The True Price top ten resale value list comprises the following cars:

1. Renault Kwid – According to Jacobson, this is a cheap and cheerful little runabout, which is faring well in terms of new car sales too. “Africans are more budget conscious than ever before. And, when shopping on a budget, the Kwid has to be a consideration,” he said.

2. Toyota Etios – Jacobson said that Toyota is constantly top of the resale pops. “The Etios which comes in hatchback, sedan and a crossover-inspired ‘Cross’ guise, is no exception. It is reliable and it is supported by a massive dealer network.”

3. Volkswagen Polo- He described the Polo as “a South African icon” and he points out that this vehicle is massively popular in both the new and used vehicle market.

4. Kia Picanto – The Picanto is a terrific little city car that has a decent interior, good road manners and attractive styling. “Running costs are reasonably low too and it comes with a comforting five-year/unlimited kilometre warranty. These factors have combined to make it a sought-after vehicle.”

5. Kia Rio – The Kia Rio is a popular hatchback favoured by used car buyers because of its design. “This can be attributed to Peter Schreyer, who joined Kia in 2006 as its head of design. He took the brand which, until then had been a budget vehicle and transformed it into a highly desirable commodity. Kia has also been the recipient of numerous quality accolades, and this sits well with both new and used car buyers.”

6. Mercedes-Benz A-Class – Solid, quiet, well-built and offering a brilliant ride, the Mercedes-Benz A-Class is a real quality act. “It is also extremely safe, as reflected by the fact that it recently won the Best Safety Award at the 2019 What Car? Car of the Year awards. It is also a finalist in the 2019 AutoTrader South African Car of the Year.”

7. Volkswagen Golf – The benchmark in its sector, the Golf is a perennial favourite with motorists. “It is a premium vehicle that is safe, superbly built, spacious and elegant. It’s one of those vehicles that has been extraordinarily popular for decades, and its popularity shows no sign of waning.”

8. Datsun Go – The Go is yet another budget car and Jacobson said that, much like the Kwid, it is proving very popular amongst new and used car buyers. “Since late last year, when driver and passenger airbags and ABS were made standard across the entire range, the Go has become an even more enticing proposition.”

9. Volkswagen Up – This is a desirable and stylish city car, and this is reflected in the vehicle’s resale value. “With many cars in this price range, one needs to lower expectations. Not with the Up. Is it inexpensive? Yes. But, in this case, cheap is most definitely not nasty,” he commented.

10. Mercedes-Benz C Class – It is not surprising to see a second Mercedes in the resale stakes. “It has long been extremely desirable in the used car market. It is always hard to say why any car fares well in the second-hand market; it is thanks to many factors – from running costs and dealer service to supply and demand. However the C-Class is normally snapped up really fast on auction,” he said.


 

About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 28 years. The Economist started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at www.economist.com.na. It is the first Namibian newspaper to go fully digital. Daniel Steinmann is an authority on macro-economics having established a sound record of budget analysis, strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He regularly helps economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to daniel@economist.com.na