Defender defies depreciation
Big off-roaders including Land Rover and LandCruiser retain the most value for ownersOff-roaders and specialist vehicles have surged to the top of the pops for retained value in Australia, according to RedBook data supplied to Canstar for its latest new-car depreciation report.
RedBook’s August retained value data is based on new vehicles priced below $100,000 and depreciation was forecast on a three-year-old vehicle that had travelled 60,000km.
The 3500kg tow rated Land Rover Defender topped the list with a retained value of between 79 and 82 per cent over three years.
It wasn’t the only off-roader to feature. The Toyota LandCruiser ranked fifth (with resale value estimated at 77-80%), the Jeep Wrangler was sixth (75-88%) and the Toyota Prado came in at 10th (72-75%).
According to RedBook general manager Ross Booth, the appetite for off-road vehicles has remained strong among Aussies during the COVID-19 pandemic, when overseas travel restrictions have encouraged more people to discover their own backyard.
“This is reflective of a trend that’s been happening for some time. People want SUVs,” Booth said.
“The market is crazy at the market, but vehicles like the Toyota LandCruiser have featured in the top five for resale for some time – not just based on current trends.”
Specialist vehicles were consistently dotted throughout the top 10 new cars for retained value, bolstering Booth’s belief that emotional attachment to a brand or model has a significant impact on its depreciation.
At number two on the list is the Tesla Model 3, with a retained value of between 79 and 82 per cent. Matching the Defender, the resale value of Tesla’s most affordable model is food for thought about the long-term ownership benefits of an EV.
Third overall, the Kia Stinger proves our appetite for affordable rear-wheel drive performance is alive and well, while the towing king that is the RAM 1500 finished fourth with the same 79-82 per cent residual value after three years.
Elsewhere, strong used market demand for the Mercedes-Benz GLC and the Jaguar E-PACE ensured they were among the top 10, too.
“Much of this comes down to supply and demand,” Booth explained. “There are no vehicles from the top-10 sales list that feature in these rankings because there are many, many examples already available on the used market.
“For something like the Mercedes-Benz GLC or the Jaguar E-PACE, they’re vehicles that people want, and if they’re considered just out of reach to some when new, then demand for used models stays quite high as a result.”
At number 11 on the Redbook list is the Toyota HiLux, which Booth admits is probably the one outlier to the popular new models theory.
Booth said new vehicle supply issues stemming from COVID-19 disruptions played a part in the August rankings – particularly the ongoing semi-conductor shortage that looks set to drag on into 2022.
“The market is supply-constrained for new cars, which means there aren’t as many of them, so the demand for used cars has increased and used car prices have increased,” Booth told Canstar.
“Will that continue forever? No, when supply comes back and you can buy a new car, we’ll go back to similar depreciation rates that we’ve seen previously.”
Redbook retained value rankings – August 2021
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