Buying or selling a car requires considering many factors, including resale value. Specifically, a good resale value helps you purchase an inexpensive, secondhand car that depreciates slower than brand-new vehicles. At the same time, it ensures you can sell your vehicle at a reasonable price in the future.
A good resale value also helps car buyers and sellers get better terms for secondhand car refinancing. It lets lenders see a secondhand vehicle as a valuable asset, making them more flexible in giving loans with lower interest rates. It also helps car sellers pay off the balance on their existing loan and even get more from the sale.
If you plan to buy or sell a car, it’s worth learning about resale values to get your money’s worth or part with your vehicle without losing much from your initial investment.
In this blog, we’ll discuss the factors affecting car resale value and identify cars with the best resale value in the Philippines, so you’ll know which to buy and sell in the future.
6 Factors That Affect a Car’s Resale Value
Unlike real estate and art, cars depreciate over time. The moment you purchase and put a vehicle on the road, it gradually loses its value. However, you can still resell it for a reasonable price if you maintain it well throughout your use. Below are the factors that affect a car’s resale value.
1. Age
Cars can lose value by 20%–30% in the first year and more in the succeeding years. After that, a vehicle only appreciates when considered a collectible or classic model. Otherwise, its value will continue to drop as it ages.
2. Mileage
The further a car travels, the more its components wear and tear and require costly repairs and maintenance. As such, car buyers prefer vehicles with low mileage. For your reference, the average driver travels more than 24,000 kilometers a year. Of course, this number is higher for drivers who always travel far and use their cars heavily.
3. Condition
Regardless if sustained from natural aging or accidents, any car damage such as scratches, dents, seat stains, cracked windows, and other mechanical issues can largely affect a car’s resale value.
Obviously, you wouldn’t buy a car with noticeable wear and tear as you’d be too preoccupied with maintenance and repair. On the other hand, you might have a hard time selling a car that has seen better days because buyers would want secondhand vehicles in good condition.
4. Fuel efficiency
Newer car models have higher fuel efficiency because advanced technologies make this feature possible. That said, you can expect old, secondhand cars to have lower fuel efficiency, thus affecting their resale value.
5. Brand and model
Vehicles from reputable car companies tend to have higher resale values than those from less popular brands. However, there are exceptions to this rule. For instance, Suzuki and Hyundai often have higher resale values because they have more accessible service centers, cheaper parts, and lower maintenance costs.
6. Maintenance and repair history
Cars inevitably undergo maintenance and repairs the more you use them, especially if they sustain internal and external damages. Well-maintained and regularly serviced cars tend to have a higher resale value because they are in better condition than neglected vehicles.
6 Cars with the Best Resale Value in the Philippines
A car with a good resale value can save you money in the long run since you can recoup your initial investment if you decide to sell it later. Fortunately, many cars still hold value in the resale market today.
If you plan to buy or sell a secondhand car, consider consulting car dealers or experts first to know which vehicles to purchase or how to set a reasonable price. Below are some car brands with high resale value in the Philippines.
1. Toyota Vios
You can’t go wrong with a classic sedan, especially the Toyota Vios, because it’s practical, reliable, and, more importantly, affordable for the average Filipino. It’s also fuel-efficient, making it an ideal choice for drivers who want to save on gas.
So, whether you’re a breadwinner with a family or an independent go-getter who loves to travel, you can rely on the Toyota Vios to last many years and still hold a good resale value.
You can get a pre-owned model for as low as P150,000, a massive discount from P706,000 for brand-new units.
Now, if you plan to sell or use your Vios as loan collateral, well-maintained units of the 2017 model can still sell for upwards of P400,000.
2. Honda City
Honda sedans, especially the Honda City, also hold a reasonable resale value. From an original price of P953,000 for the cheapest brand-new Honda City unit today, you can get a secondhand model for as low as P130,000. Models from 2016 can sell for as much as P528,000 in 2023.
It’s a worthy investment considering that Honda cars are easy to service, can retain up to 50% of their market value, and are smooth to drive thanks to efficient engines.
3. Mitsubishi Montero Sport
Consider getting a secondhand SUV like the Mitsubishi Montero Sport for more versatile transportation needs. It has a spacious interior and powerful engine, perfect for long, bumpy rides with your family or friends. Mitsubishi also has a reputation for producing high-quality and robust vehicles, adding to the Montero Sport’s resale value.
From an original price of P1.5 million for a brand-new Mitsubishi Montero Sport, you can get a secondhand model for P535,000.
4. Isuzu D-Max
Mid-size pickup trucks like the Isuzu D-Max have one of the best resale values because they depreciate by only 21.4% over five years. In particular, this model has a good resale value because it’s the first Energy Efficient Vehicle (EEV) certified pickup in the Philippines, thanks to its powerful 1.9-liter turbodiesel unit.
You can get a secondhand Isuzu D-Max for as low as P470,000 from an original price of P917,000 for its cheapest unit. A more high-end iteration from 2017 can still sell for over P750,000 if well cared for.
5. Ford Ranger
The Ford Ranger is also an ideal option if you’re looking for a stylish but durable mid-size pickup. It has a state-of-the-art touchscreen infotainment hub, a powerful 2.0L turbo diesel engine, and various drive modes that allow you to traverse different road conditions and surfaces.
You can get a secondhand Ford Ranger for as low as P258,000, from an original price of P1.2 million for its cheapest unit. Executive Luxury Sport (XLS) models from 2014 can still sell for over P450,000 today.
6. Subaru XV
The Subaru XV is a popular compact SUV equipped with the brand’s Symmetrical All-Wheel Drive system, which provides excellent handling and traction in all weather conditions. It also has various security features, such as a rearview camera, blind spot monitoring, rear cross-traffic alert, and automatic emergency braking to ensure safe driving on rugged roads.
You can buy or sell a secondhand Subaru XV for P490,000, from its original price of P1.9 million.
Get Your Car Investment’s Worth
Buying or selling a car is often challenging as you need to consider its performance and resale value in the long run. If you plan to buy a secondhand vehicle, consider the models above to get a high resale value and become qualified for a pre-owned car loan. With the pointers above, you’ll know which cars to get and sell in the future.
If you’re looking for a secondhand car loan in the Philippines, look no further than Asialink Finance for the best deals. We offer low-interest rates and multiple, flexible payment options to ensure you get the car of your dreams without sacrificing your wallet. Apply now for a car loan at an affordable price.
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