Japan or Korea?
Which cars have better resale value?
Japan or Korea – which cars have better resale value?
While Korean cars have grown in popularity and quality, Japanese cars still lead the way when it comes to desirability, and therefore resale value, according to a recent industry analysis.
True Price, a highly regarded South African vehicle evaluation website, used its vast records of local vehicle auctions to undertake an extensive analysis of all Japanese and Korean vehicles, and their sale prices.
Daryl Jacobson, managing director of True Price, explains how they achieved their results: ‘We analysed all the vehicles in four odometer categories: 0 to 50 000 km completed, 50 000 to 100 000 km completed, 100 000 to 200 000 km completed and over 200 000 km completed. In three of the four categories, the Japanese vehicles came up trumps,” he reveals.
In the 0 to 50 000 km, Japanese cars achieve 70.3% of their original list price when sold on auction. In the 50 000 to 100 000 km category, Japanese vehicles achieve 60.0%, and in the 100 000 to 200 000 km category (the only sector in which the Koreans triumph), Japanese vehicles notch up 49.2% – compared to the Koreans at 49.3%. In the over 200 000 km category, the Japanese record 43.2% while the Koreans achieve 38.8%.”
What does the better resale value of the Japanese brands mean to motorists? Jacobson says that there are some clear messages to emerge from this study. “Right now, if you’re undecided as to whether to purchase a new Japanese or a Korean vehicle, the safer bet (when considering resale values) would be a Japanese product. Chances are good that the vehicle won’t depreciate as much as the equivalent Korean product,” he advises.