Is
a vehicle’s resale value one of your considerations before
purchasing a car? If it is, your best bet is a pickup truck,
according to data released by the world’s leading classifieds
platform, OLX. Vehicles in this particular classification, on
average, take about 9 years to lose 50 percent of their suggested
retail price (SRP).
Based
on a sampling from OLX’s secondhand car listings in the country
from August 2017 to August 2018, the extensive data comprises the top
11 automotive brands based on 2017 sales volume. On average, it takes
5.10 years for a vehicle’s SRP to get slashed to half, according to
this sampling. Pickup trucks, multipurpose vehicles (MPVs), and vans,
however, performed above average and take more time before they lose
50 percent of their value.
“A
number of factors affect the pickup truck’s robust resale value,”
says Manuel Roman, OLX Philippines’ Head of Cars. “The
versatility and reliability of pickups make them desirable vehicles.
In the brand-new vehicle market, light commercial vehicles--one of
which is the pickup truck--are popular choices among consumers. In
the secondhand market, the demand for pickups remains high. Without
an oversupply in the market, they keep their value well.”
Meanwhile,
car buyers looking for seven-seaters should consider including MPVs
on their shortlist if they want a vehicle that doesn’t depreciate
fast. Compared to sport utility vehicles (SUVs), MPVs keep their
value longer: It takes 7.06 years on average before they lose half of
their SRPs. SUVs, on the other hand, slash their value by 50 percent
after 5.04 years. The infographic below shows the average number of
years it takes before a particular vehicle classification loses 50
percent of its SRP.
The
OLX data shows that on average, three-year-old vehicles retain 62
percent of their SRPs. When automobiles reach their fifth year, they
keep 52 percent of their value. On the 10th year, the vehicle’s
value becomes 33 percent of its SRP.
OLX
Philippines’ analysis of the data found that Mitsubishi, Isuzu,
Nissan, and Toyota vehicles do not depreciate as fast as other
brands. It takes Mitsubishi and Isuzu vehicles an average of 6.03
years before their price reach 50 percent of their SRP. Nissan-badged
vehicles take 6.02 years before they lose half t of their value,
while Toyota cars take 5.89 years.
It
is important to note that just because a particular brand cuts its
SRP by 50 percent earlier than average doesn’t mean it’s a
substandard one. One of the factors that can affect a car’s
depreciation is demand. The desire for vehicles bearing the badge may
not just be as high as the other brands. In addition, o wners of
these vehicles may be keeping their cars longer and sell only when
the cars are older. Hence, the listings under these brands have
relatively lower value compared to other marques.
OLX
Philippines connects millions of Filipinos to buy and sell brand-new
and used items, including automobiles and motorcycles, via their
mobile phones or the web. Every month, around 45,000 vehicle listings
are posted on the OLX platform. More than 1.4 million users log in to
OLX monthly to check out the cars available or to post one for sale.
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