14 Cars that Depreciate Slowly
Australia's top resale value cars
Buying a car is a liability. This is something your parents will tell you when you get your first job so you buy a secondhand car that gets you from A to B, rather than dropping a year's wages on your dream car only to find you owe more on the car loan than the car is worth.
When you are ready to buy a brand new car, it's not all doom and gloom. By doing your research and making a careful selection, you'll minimise your losses on a new car purchase. Start here with 14 cars that depreciation less than the competition.
Fourteen cars that depreciate the least
When you buy a car brand new, it loses value fastest in the first year that you own it. Here's the Aussie car makes and models that minimise that financial hit.
4WD's with less car depreciation
1. Toyota Land Cruiser
The Land Cruiser first arrived in Australia to be used in the 1958 Snowy Mountain River Scheme, and they've been a strong favourite ever since with those who need to tackle tough terrain and get things done.
Image courtesy of Car Advice
The Toyota's sturdy reputation ensures minimal car depreciation, so you should get a resale price of 68 to 74 per cent of the original price (Redbook, September 2017), especially if you've chosen a GXL turbo-diesel model popular in the off-roading community.
2. Subaru Forester
A practical family car that won't let you down off the beaten track, the Forester is popular in the secondhand market thanks to its unmatched versatility.
Image courtesy of Car and Driver
If you buy new, after three years your car depreciation puts the resale value at 70 to 75 per cent of your purchase price, according to Canstar.
3. Land Rover Range Rover
Image courtesy of Cars Guide
This 4WD could also fit neatly into the luxury car segment. Its off-road ability remains unquestionable, with new technology turning any dirt road or creek bed into a pretty smooth driving experience.
"It's basically a Bentley crossed with the offroad ability of a tractor" - Top Gear
Low car depreciation on the Land Rover means you can resell for around 70 to 75 per cent of the new purchase price (Redbook, September 2017).
4. Nissan Navara
The Nissan Navara prove that economic fuel consumption, even in a big vehicle, will contribute to a sturdy resale price. Other contributing features are the excellent handling when loaded or unloaded, the ability to produce high power with minimal fuel use, and a comfortable cabin.
Image courtesy of Car Advice
Car depreciation for the Navara means you can resell for around 71 per cent of the new purchase price after three years or 60,000km, according to Glass's Guide.
Small cars that depreciate the least
5. Hyundai i30
Image courtesy of Auto Trader
Hyundai continues to demonstrate a commitment to providing top of the range technology and design at very affordable prices. With materials, handling and technology that you'd expect in a much more expensive car, car depreciation for i30 is minimal for a small car with a resale value of 60 to 65 per cent of the new car price after three years (Redbook, September 2017).
6. Honda Jazz
One of the most spacious small cars available. CarAdvice have suggested that if you need the space of a van in the city, but you don't want to drive a van everywhere, then this is the car for you.
Image courtesy of Drive
Practicality leads to minimal car depreciation. The Honda Jazz is worth 67 per cent of the new purchase price after three years or 60,000km according to Glass's Guide.
7. Volkswagen Polo
With a high-quality finish you won't find in cars twice the price, great fuel economy and super-easy parking, the car depreciation sets a private sale price of 60 per cent of the original value after three years (Redbook, September 2017).
Image courtesy of Car Advice
Want to finance one of the car's you've read about so far? Get a quick quote for a 4WD or small car.
Family cars with lower car depreciation
8. Honda CR-V
Offering unpretentious practicality and ride height, the Honda CR-V gives you space and comfort that you need for the whole family.
Image courtesy of Car and Driver
One of the most attractively designed SUVs in its class, it shows that looking good in the driveway matters to secondhand buyers. Low car depreciation sets the resale value at 60 to 70 per cent of the new purchase price after three years (Redbook, September 2017)
9. Mazda3
With six variants to choose from, the Mazda3 is one of Australia's most popular cars. Extras won't add to your resale value, nevertheless choosing a Mazda3 when you've got a growing family will make upgrading financially easier.
Image courtesy of Cars Guide
Depreciation over three years leaves you with a sturdy 61-70% of your original purchase price at resale, according to Canstar.
10. Toyota Corolla
Available as a hybrid since 2016, few remember this incredibly popular small car once dominated the Bathurst 1000 between 1985 and 1992.
Image courtesy of Edmunds
Reliability and the brand name mean low car depreciation, with a solid resale price at 65 to 70 per cent of the new purchase price after three years. (Redbook, September 2017).
11. Mazda2
The hatchback model is perfect for a small family, great fuel consumption once again proves desirable in the secondhand market, keeping this hatch popular as many Australians make the switch to a small SUV.
Image courtesy of Cars Guide
Minimal car depreciation means the secondhand price of 65 to 70 per cent of the original price (Redbook, September 2017).
Sports & luxury cars that depreciate the least
12. Audi A5
This stunning coupe isn't exactly made for the city streets. Out of town, you'll relish the advanced technology, luxurious interior and impeccable cornering.
Image courtesy of Car and Driver
When you've had enough, this sports car's low depreciation means you'll be able to sell the A5 for around 73 per cent of its original price (Redbook, September 2017).
13. Porsche Cayenne
Offering the ultimate driving versatility, the Porsche Cayenne handles beautifully anywhere from the race track to off-road rocky climbs.
Image courtesy of Drive
In a class of its own, the Cayenne keeps its value, depreciating to 70 per cent of its original value after three years (Redbook, September 2017).
14. Toyota 86
For driving enthusiasts who love the twisting, turning backroads, the 86 invites you to press its limits. A great road feels and rear-wheel drive keeps this car popular in the secondhand car market.
Image courtesy of Car Advice
According to Glass's Guide, this nippy car has minimal car depreciation, holding 64 per cent of its value after three years or 60,000 km.
When you've chosen your dream car, or just your A to B car, with a view to a solid resale value, get a quote for a car loan for the best deal on your finance.
Tom Caesar is the Managing Director of The Positive Group, a group of Australian financial services companies offering a broad range of finance to clients Australia wide. The Positive Group assist clients in the areas of car finance, mortgages, insurance & wealth management. Tom has been in car & asset finance for over 10 years. Tom regularly contributes articles on car finance, insurance, technology and business growth, drawing on his experience of starting his own brokerage in 2009.