While reading about cars, owning cars, and especially when buying cars, you might have heard of this term: depreciation.
It’s the bane of car buyers everywhere, and it certainly keeps a veteran car buyer and car dealers alike on their toes. But for novice car buyers like some of you, what is it?
What is Depreciation?
In relation to cars, depreciation is defined as the reduction in the value of an asset over time. In simple terms, it’s the difference between a car’s buying price and a car’s selling price.
Now, obviously, this will negatively affect the selling price of a vehicle. And of course, a discerning, financially keen person does not want to buy a car model that depreciates fast. Do you want to be that person who bought a Php 2 million luxury car only to sell it at half the price five years later? No one does.
As such, let us share with you a list of cars that have low depreciation rates, and therefore, have high resale value.
Cars that have high resale value
1. Pickup Trucks
Pickup trucks, as you already might know, are quite popular here in the Philippines. That’s because most examples are robust and reliable vehicles that can suit a vast multitude of roles.
For tradesmen and commercial uses, it is an invaluable tool. It’s also one of the best platforms for off-roading. A lot of families here also use a pickup truck as their trusty daily ride because the modern pickup truck is also full of comfort features.
Even older Hilux models will still fetch a relatively high price compared to most hatchbacks and sedans
Pickup trucks with the least depreciation rate, as listed on our car for sale section, include the Toyota Hilux whose 2014 models can still be sold from Php 600k to Php 700k.
That’s only a 40 percent loss from the original price of a 2014 Hilux G 4x2. The same goes for 2015 Isuzu D-Max units which are still being sold at around Php 500k to 700k depending on the condition.
>>> Find a Toyota Hilux 2021 at the best price
The same goes for the Isuzu D-Max and most pickup truck models really
>>> Related: The top five best pick up trucks in the Philippines in 2020
2. SUVs
Most SUV models available here in the country are midsize, seven-seater models that are based on trucks. As such, they’re quite robust albeit they have less cargo capacity than their truck brothers. They’re also quite popular because they can perform excellently as high capacity family vehicles.
Examples of truck-based, midsize, seven-seater SUVs with a very high resale value here in the Philippines are the Toyota Fortuner, Ford Everest, Isuzu Mu-X, Nissan Terra, and the Chevrolet Trailblazer.
>>> Find the best Ford Everest 2021 price Philippines
Ladder frames and seven seats. What's not to like?
There are other larger SUV models that have high resale value for one reason or another. There’s the Toyota Land Cruiser, and by extension, the Lexus LX, which has garnered a worldwide reputation for being so reliable. The Mitsubishi Pajero’s fourth-generation NS models are also sought after.
There are also non-truck based, but still very robust vehicles like the Suzuki Jimny, which came with a ladder frame from its earliest examples to the latest fourth-generation JB64/JB74 models.
>>> Related: SUV prices in the Philippines from 14 most popular brands
3. Vans
While not as robust as SUVs and pickup trucks, vans are definitely larger, and thus have way more passenger and cargo capacity. As such, they also fulfill a myriad of roles here in the Philippines, from functioning as commercial passenger vehicles to being used as private family vehicles, as company vehicles, and even as cargo vehicles.
As a result, models like the Toyota Hiace and the Nissan Urvan retain substantial resale value. Matter of fact, despite the release of the newer H300, the older fifth-generation 2014 Hiace can still sell for as much as Php 700k to Php 800k.
The older, "flat-nosed" Hiace still has a great amount of space and a lot of grunts
4. Specific Sportscars
While a lot of sports cars are seen as finicky and require expensive maintenance, some will hold up their value better than others. It might be that the model is rare, is actually reliable, has a large following and has become a car culture icon, or the dreaded “drift-tax.”
Toyota 86's are desirable due to their reliability and their potential for modifications
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Here are some examples;
- Mazda Miata NB to NC
- Toyota 86
- Subaru WRX STI
- Honda Civic SiR
- Nissan Silvia (S13 to S15)
- Nissan Skyline
So what is this drift tax, you asked?
Well, drift tax refers to the price mark-up given to a certain number and certain kinds of cars: cars that can drift. There’s the famous Toyota AE86, the Nissan 240SX, and the Nissan Sylvia.
Even a gutted and dinged up Silvia can still be sold from Php 400k above. A fresh example would be worth Php 900k to a million plus
As more and more people buy these cars to either turn these models into drift cars and/or autocross cars, more and more units are banged up. As a result, supply for these certain car models are getting low, even much less so are pristine examples.
5. Specific Brands
Some specific brands, regardless of whether it’s a sedan, crossover, or SUV, have a reputation of being reliable for long periods of time. The biggest brand we could think of is Lexus, which we all know produces luxury vehicles.
Now, luxury vehicles get a bad rap especially because of their resale value. It might be that many of these luxury brands’ models will have features that will not hold up over time, nor are they mechanically reliable.
Not Lexus though, because from the chassis to their electronics, they show a surprising amount of survivability. Lexus, after all, is a sub-brand of Toyota, so that might explain their reliability.
>>> Related: The top brand new cars priced from Php 700k to Php 1 Million
A particularly clean IS200 is worth around Php 500k to Php 700k [Photo Source: FotoSleuth]
And of course, we simply cannot ignore the Lexus IS series, which for a brief period of time in the early 2000s, became one of the few Japanese made luxury cars to penetrate the discerning tastes of popular car culture back then.
The same goes for some Honda models like the Honda Civic SiR, which despite being released way back in 1999 is still being sold at Php 300k and higher, depending on condition.
There are also very rare Honda’s (at least for the Philippines) like the very sought after Honda Civic Type R Ek9. There’s also the Honda S2000, one of the few rear-wheel-drive models made by the company. Those exist here in the country in ultra-limited numbers and due to that, we’re quite sure that they still hold value.
This is especially true in the case of the Type R Ek 9
For more car related guides, keep reading here on Philkotse.com.