Top 5 brands that hold their pre-owned values the best in South Africa

Four-year-old Toyota vehicles hold their value better than other four-year-old cars in the country, with the used vehicle retention (UVR) rate for four-year-old Toyota vehicles in February 2022 measuring 82.81%, according to Lightstone Auto.

“Used vehicle retention is the percentage of your vehicle’s original value it retains when it is sold by a dealer as a used vehicle,” said Pieter Wessels, managing director of Lightstone Auto.

Toyota is followed by Mazda with 78.84%, Honda with 74.05%, Land Rover with 70.86%, and Volvo with 67.80%.

These figures were obtained through “taken up and approved finance transactions,” said Wessels.

“[The] transactional data cover a wide range of dealers, from small independent dealerships to some of the largest dealer groups in the country.”

The photo below compares the UVR in February 2021 and 2022 for four-year-old vehicles made by one of these five brands in South Africa.

What affects UVR

There are many factors that impact a vehicle’s UVR, with the main elements being mileage, condition, and vehicle age, said Wessels.

The market’s positive or negative perception of a particular vehicle or brand also impacts UVR, although to a lesser extent.

“Vehicles with high new vehicle sales volumes tend to have higher UVR,” said Wessels. “Think Toyota and VW.”

“Vehicles with higher new vehicle sales volume create a higher demand for other services later in the vehicle’s lifecycle.”

Results of high sales numbers are that parts will be more easily available and service centres will be better geared to take care of the vehicle, he said.

Dealers will also be able to offer higher trade-in values since they can sell these used vehicles faster than others.

This is not true in every case, however, as cars such as the discontinued VW Passat “has struggled in the used vehicle market,” said Wessels.

Location and vehicle specification – “aftermarket vs. factory-fitted” – could also potentially play a role in determining UVR, and Lightstone is currently exploring the extent to which these factors can affect the second-hand price of a vehicle in South Africa, said Wessels.

The photo below shows the top five brands whose four-year-old cars experienced the largest annual increase in UVR in February 2022.