The value of a new car drops by at least 10 per cent as soon as you drive it out of the showroom. The value of the vehicle continues to fall over the years, and the owner realizes it only when it’s time to sell it off. The phenomenon of depreciation holds for every mainstream vehicle, but there are some cars that depreciate a lot lesser than others. These are the models that can easily help you recover a huge portion of the amount you spent on buying these vehicles.
The luxury cars experience the highest depreciation, which is mostly due to the less demand for cars that are not only quite difficult to buy but also warrant a high expenditure on their maintenance. The high maintenance costs also lead to faster depreciation from most models from Skoda and the slightly older vehicles from Ford. Among the mainstream automobiles, large sedans tend to deprecate fastest, followed by the SUVs and the hatchbacks. However, it’s worth a mention here that the Toyota UVs depreciate slower than most of their rivals. Even the best-selling small cars from Maruti Suzuki and Hyundai hold on to their value longer than the competition.
With the sole exception of Toyota Innova models, petrol cars depreciate slower than the diesel-powered vehicles. For the first 2-3 years, however, it’s the diesel cars that lose their value slower than their petrol-sipping counterparts. Between the first to the fourth year of ownership, depreciation of petrol models reaches from 20 per cent to 40 per cent. The value of diesel cars diminishes from 10% in the first year to 40% in the fourth year. However, petrol cars depreciate lesser over the long run, which means the percentage of loss in value per year of diesel cars is higher after two years of ownership.
After four years of ownership, a diesel car depreciates faster than its petrol counterpart. However, it must be noted here that depreciation also depends on the condition of the vehicle. The higher depreciation of diesel cars can also be attributed to factors like higher maintenance of diesel engines and the 10-year cap on usage of diesel vehicles in some parts of the country.
We have divided our list of best resale value cars in India into two categories – petrol and diesel
The most depreciation-resistant petrol car on our list is the Maruti Suzuki Dzire. Based on the Swift, the sub-4-metre sedan holds on to its value well. One can recover up to 86 per cent of the initial value after 1 year of ownership. The compact sedan can even help you recover up to 68 per cent of the initial value even after four years of usage.
The low depreciation even goes on to show the unprecedented popularity of the country’s highest selling budget sedan. In its third generation now, the Dzire comes with a roomy cabin, frugal engine, a long list of features, and low cost of maintenance. It’s unarguably among the best resale value cars in India. Here is the percentage depreciation that the Dzire experiences during the first four years of ownership –
Next in line is the previous generation Hyundai i20, which was discontinued in 2014. In spite of being out of production for more than four years now, the last-gen i20 retains its value well. To put things in perspective, last year, the MY 2014 i20 could command up to 55 per cent of its initial cost, which is nothing short of commendable for a vehicle that has been out of production for so long.
A major reason for the high resale value of this B2-segment hatchback is its trouble-free nature and the premium ownership experience it provides. Its powerful yet fuel-efficient engines also work in favour of the vehicle. Here is the percentage depreciation that the i20 has experienced during the first four years of ownership –
Like its predecessor, the current generation i20 retains its value pretty well over many years of ownership. Again, this can be attributed to the decent engines, a high level of passenger comfort, and the vast service network of Hyundai Motor India Ltd. The second-gen i20 can command up to 84 per cent of its initial value after one year of ownership. Even after four years, the owners of the B2-segment hatchback can recover up to 67 per cent of the initial amount on selling their vehicles. Here is the percentage depreciation that the i20 has experienced during the first four years of ownership –
The next car in our list of top 12 best resale value cars in India is another Maruti Suzuki model. The Swift has been one of the highest selling cars in the country, and the same reflects in its resale value. The B1-segment model holds on to its value so well that you can recover up to 74 per cent of your initial investment even after two years of ownership. What’s more commendable is that the car retails 67 per cent of its value even after four years of ownership.
One even benefits from Maruti’s great after sales service and the trust that comes from owning a car from the country’s largest selling car manufacturer. Here is the percentage depreciation that the Swift experiences during the first four years of ownership –
The next car in our list of best resale value petrol cars in India is the Maruti Suzuki Alto 800, which is the largest selling entry-level model in the country. While the Alto is available in two engine variants – 0.8-litre and 1.0-litre – it’s the less powerful model that retains its value better. That said, both the versions come with a peppy engine, a high fuel efficiency and command low maintenance. The high demand for the Alto 800 in the new car market has led to strong resale value in the used car bazaar.
One can recover up to 77 per cent of the initial value after one year of ownership. Even into four years of life, the Alto 800 can command value of 60 per cent. The vast service network of Maruti Suzuki and the customer-friendly attitude of the after-sales staff play a vital role in the high resale value this vehicle commands. Here is the percentage depreciation that the Alto 800 experiences during the first four years of ownership –
Even though VW cars don’t have a very high resale value owing to various factors, the petrol-powered Volkswagen Polo is an exception. The decent value it commands in the resale market can be attributed to the comfortable cabin, high build quality, and the reliable petrol motors.
Going by the data we’ve collected over the years, a 2-year old Polo can retain up to 70 per cent of its initial cost. Even after four years of ownership, it can fetch you up to 54 per cent of its original cost. Here is the percentage depreciation that the Polo experiences during the first four years of ownership –
The Toyota Innova is one vehicle that defies all laws of depreciation. The highly popular MPV enjoys such a great demand that it has become almost resistant to losing its value. The Toyota MPV holds its value so well that you can recover up to 90 per cent of its initial cost after a year of usage. Even after four years of usage, one can get up to 77 per cent of his or her initial investment.
The high demand for the Innova in the new car market has even trickled down to the second-hand car bazaar. The premium MPV enjoys great popularity owing to the high comfort level it provides, ease of ownership because of Toyota’s excellent after sales service, and its bullet-proof reliability. Here is the percentage depreciation that the Innova experiences during the first four years of ownership –
While the petrol-powered Dzire is the most depreciation-resistant vehicle in its category, it loses out to the mighty Innova when it comes to the diesel-sipping models. Still, the Dzire diesel, which comes with the tried-and-tested Fiat-sourced Multijet engine, can retain up to 87 per cent of its initial value after a year of ownership. Even after four years of usage, the owners of the compact sedan can recover up to 63 per cent of the initial investment.
This is simply because of the high frugality and reliability of the 1.3-litre oil-burner that powers the country’s highest-selling compact sedan. Here is the percentage depreciation that the Dzire experiences during the first four years of ownership –
Like its compact sedan derivative, even the Swift hatchback is resistant to depreciation to a great extent. Here, again, it’s the Fiat-sourced 1.3-litre diesel engine that helps the vehicle hold on to its original value pretty well. Owners of this B1-segment hatchback can recover up to 86 per cent of the initial investment after a year of ownership and up to 60 per cent of the original cost after four years of usage. Here is the percentage depreciation that the Swift experiences during the first four years of ownership –
Like its petrol-sipping sibling, even the diesel-powered last-gen i20 is among the best resale value cars in India. Back in the day, a year old i20 lost just about 14 per cent of its initial value. Even after four years of ownership, the used i20s sold last year saw retention of up to 59 per cent of their original cost. Here is the percentage depreciation that the old i20 experiences during the first four years of ownership –
Even the diesel-powered Elite i20 holds on to its value pretty well, thereby making it among the best resale value cars in India. A four-year-old Elite i20 can command up to 61 per cent of its original value, which makes it almost as depreciation-resistant as the Maruti Swift. After a year of ownership, the Elite i20 can command 83 per cent of its original cost in the second-hand car market. Here is the percentage depreciation that the Elite i20 experiences during the first four years of ownership –
The last vehicle on our list of best resale value cars in India is another Toyota. The Fortuner is the highest selling premium SUV in the market, and its high demand in the new car marked leads to decent resale value in the used car market. The premium SUV comes with powerful engines, a spacious interior, a bold design, and capable 4×4 hardware.
It also enjoys Toyota Kirloskar Motor’s fantastic after sales service. Thanks to all these traits, this SUV benefits from pretty high demand in the used car market and decent resale value. The capable sports utility vehicle can recover up to 54 per cent of its initial value after four years of ownership. Here is the percentage depreciation that the Fortuner experiences during the first four years of ownership –