From the perspective of the consulting firm Jato Dynamics, time and use are determining factors in the resale price of a vehicle, since over the years a unit naturally loses its value due to high mileage or noticeable wear. in dresses and steering wheel, for example. Physical-mechanical conditions also play a relevant role when establishing the resale price of a model. A car that did not have good maintenance is not the same as another that did receive all its services.
Another factor that intervenes is the segment. Today SUVs are the best-selling segment in the Mexican market, so they are the vehicles with the best residual value, according to Gerardo San Román, director of Jato Dynamics for Latin America. On the other hand, there are the segments focused on fleet sales, as well as those that are more niche, such as luxury and sports vehicles, since these tend to have a higher depreciation.
“Fleet vehicles often suffer a stronger depreciation… Suddenly it happens that the market is flooded with thousands of vehicles with the same characteristics, that is something that does not help them much (in their resale value),” he asserted.
Brands like Chevrolet or Nissan have historically been “more flotillas”, while companies like Kia, Honda and Hyundai have maintained a strategy more focused on end consumers, with which their models may retain their value over time, said San Roman.
From the perspective of consultancy carVertical, Porsche, Jeep and Mini are the three least underappreciated brands. From the volume segment, Hyundai and Toyota also make the list, as they generally offer lower maintenance costs, furthering their appeal to used car buyers. On the other side of the table, Chrysler appears. According to carVertical, the value of a brand new model will eventually drop as much as 96.8% over the next 25 years.
Jazmín Barrera bought a stunning luxury car, in a bright red color that dazzles from a distance. But now he is still looking for someone to sell it to; the majority to whom he offers them answer “no”, because he is afraid of the amount of money that could require a repair.
Brais Alvarez, an account manager for consulting firm JD Power, said premium-brand vehicles tend to struggle with their resale value. “A lot of this has to do with the perception that they can be problematic… A customer of premium or luxury vehicles might buy a new unit, pass the time and get another one; while a customer buying a pre-owned premium car may not be able to trade it in as easily,” he asserted.
CarVertical agreed with the above, because from the point of view of its specialist Matas Buzelis, half of the brands with the highest depreciation are premium. “Even though consumers love Infiniti, BMW OR Volvo, their value decreases significantly over time.”
“BMW and other luxury car brands often have features and technological improvements that used car buyers don’t appreciate. If you can afford a new BMW, Mercedes-Benz, or Land Rover, you probably want as much luxury and innovation as possible. A person looking for a used car prioritizes price and maintenance costs over all other features that they may see as ‘unnecessary’. That is why a used Toyota for many customers is more attractive than a BMW,” Buzelis said in a statement.