The rapidly changing market dynamics in the Indian automotive industry have led to new cars demanding high resale value.
Resale Value- one of the top priorities of the majority of Indian car buyers. Despite automobiles being a depreciating asset in general, buying a car with good resale value can help you recover some of the initial cost after using it for a certain time. The resale value depends on a number of factors, from fixed criteria like brand name and car price to variable factors like odo reading, condition of the car, service record and many more. Cars With Best Resale Value in India- Factors, variable and model names.
To begin with, let’s have a look at the fixed factors that affect a car’s resale value:-
- The price of the car at the time of purchase. Usually, cars with high initial selling price depreciate faster than their affordable counterparts. This also boils down to the fact that you will find more buyers at a lower price spectrum. For example, a Maruti Swift will fetch more buyers in the resale market than a Mahindra XUV700 as a used Swift will in the used car market will command a lower asking price, thereby making it more accessible.
- Car Brand- This is another major factor affecting a car’s resale value. Some of the popular companies like Toyota, Honda, Maruti Suzuki and Hyundai command a high price in the used car market as compared to other companies like Volkswagen, Skoda, Kia and Tata. It is also important to note that the resale value could vary depending on the car model.
- Car model- High-selling models often command a higher resale value. The term ‘high-selling’ could also be replaced with ‘highly popular’ here as an expensive popular car may not sell as much but will still command a higher resale price. For example, the Toyota Fortuner sells around 2,000 units every month but it will still carry a higher resale value.
The variable factors affecting a car’s resale value:-
- Age- A new car loses almost 5% of its value after being taken out of the showroom. Subsequently, it loses nearly 10% value every year for the first five years. Afterwards, the rate of depreciation slows down down a bit. Tip for car owners- Sell your car around the 5-year ballpark to get the best resale value.
- Odo Reading– The kilometres put on the car is another major factor which affects its resale value. The kilometres driven equals the wear and tear to a car’s essential components. So, the higher the kilometres lower the resale value.
- Condition of the car– The condition is not a single criterion but a mix of multiple factors like- paint quality, service history, condition of the major mechanical parts, accidental history, tyre and battery condition, suspension and more.
Now that you are clear about the factors, we will have a look at the Top Cars With Best Resale Value In India in 2024 only on the basis of the fixed factors.
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Toyota Fortuner- The Reliability King
Toyota Fortuner is currently the king of the full-size SUV segment and its high resale value is one of the factors behind this crown. While there are multiple reasons behind its high selling price in the used car market like proven reliability, the brand value associated with the Toyota badge and the popularity of the Fortuner moniker itself, the rapidly rising prices automatically increases its value in the resale scenario. If a new car will get costly over time, the resale value of that car will also increase proportionally.
Toyota Innova and Innova Hycross
Toyota Innova is another name in the market which is known for its sky-high resale value. You will find Innova Crysta with lakhs of kilometres on the odo, selling at a very steep price. The latest Innova Hycross will also command a similar value in the resale market. The brand value of Innova, reliability and price hikes now and then are some of the key reasons behind the good resale value of Toyota Innova.
Honda City
A brand name in itself, Honda City has been ruling the sedan space in the Indian market for over 20 years and it is the most sought-after model its its class. Known for its reliability, powerful i-VTEC engine and Honda’s after-sales prowess, the Honda City commands a superior value in the used car market. One of its major USPs is the low maintenance cost over a longer ownership duration.
Hyundai Creta
The best-selling mid-size SUV has been topping the resale value charts lately and it comes down to the fact that Creta is one of the most popular names in the Indian market. The depreciation hit while selling the Hyundai Creta is not that sharp and you are bound to get a good price in the used car market. Even the first-generation models command a very high selling price compared to other cars in the segment. Especially the diesel variants will fetch a higher sticker cost as compared to the petrol variants.
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Mahindra Scorpio N and Scorpio Classic
The Mahindra Scorpio has always been a top choice amongst a certain set of buyers and the SUV enjoys a cult following in the Indian market. This is quite evident from the high waiting period on the SUV. While the Scorpio Classic was always preferred due to its mafia stance, the new Scoprio N has joined the bandwagon. The list of cars with the best resale value in India is incomplete without incorporating the legendary Scorpio. Even the previous generation of the Scorpio are selling at a good price in the used car market and it boils down to the fact that no other SUV in this segment can have the road presence, rugged stance and reliability of the Mahindra Scorpio.