What is a Depreciating Car?
Depreciation is the difference between a car’s value when you buy it and when you come to sell it. This drop in value varies between makes and models but typically is between 15-35% in the first year and up to 50% or more over three years.
Fastest Depreciating Cars In South Africa
Which car depreciates the fastest in South Africa
Some vehicles retain their value better than others. Sometimes, this has nothing to do with the quality of the car, and its perceived value is based on the market.
A vehicle is only worth what someone is prepared to pay for, and certain brands hold their value better than others for no reason other than market desirability.
Generally speaking, brands like Volkswagen and Toyota retain their value better in the long run, while brands such as Nissan, Alfa Romeo, and Jaguar suffer at the hands of depreciation.
Which car loses its value fastest in South Africa?
For instance, the Tata Indica achieved 50% of its original list price on auction.
- Tata Indica – 50%
- Jeep Grand Cherokee – 51%
- Chevrolet Cruze – 54%
- Ford Kuga – 54%
- GWM Steed – 56%
- Kia Cerato – 57%
- Chevrolet Aveo – 57%
- Hyundai ix35 – 57%
Which car depreciates the quickest?
EVs
Luxury Cars Struggle to Hold Their Value
| Rank | Segment | Average 5-Yr Depreciation (%) |
|---|---|---|
| 1 | EVs | 49% |
| 2 | SUVs | 41% |
| 3 | Hybrids | 37% |
| 4 | Trucks | 35% |