There’s been a shift in the South African car market. According to TransUnion’s latest Vehicle Pricing Index (VPI), on average, used car prices have experienced a more significant increase than domestic new car prices. The report mentions that prices increased by 8% in the third quarter of 2023.
The same VPI also revealed that cars older than three years have seen a more significant price increase between 15.7% and 19.4%.
Given this unique market climate, it becomes crucial to identify the top five pre-owned cars offering high resale value. But before delving into the list, let’s outline how we arrived at our selection.
Factors We Considered When Selecting The Best Second-Hand Cars Based On Return On Investment (ROI)
When compiling our top five best second-hand cars in terms of ROI, we reviewed the following:
Market Trends
As expected, market trends and resale values can fluctuate depending on where you are in the country. But generally speaking, you can get a general idea by analyzing data from:
- Industry reports
- Automotive websites
- And resale value studies
Automotive Experts
The automotive world is filled with industry experts familiar with the South African and international markets. Usually, the experts will share their insights from test-driving cars.
These experts will share their opinions about the vehicle, from the plastics used for the dashboard to the feel of the gearbox shifts.
Also, experts analyze cars regularly and assess each vehicle’s performance. The only thing these experts can’t help with is reliability over time.
This is where public opinion comes into play.
Customer Feedback
Owning a car is the best way to review it. Living with a car allows you to examine how certain parts last, how they age, and more.
You also start to see whether there are any manufacturing faults with the car. Think about common issues you associate with specific vehicles.
Usually, you can tap into these opinions via specific online blogs or social media platforms.
Brand Reputation
South Africans love a reliable brand. Specific vehicles are known to last, while others don’t have the earned fortune.
Brands can increase the value of a car tenfold.
The last factor we reviewed was the vehicle features and specifications. Factors such as:
- Fuel efficiency
- Performances
- Safety features
- And cargo capacity
Now that you understand how we created the following list, let’s share our top second-hand cars to buy for the best ROI.
Toyota Corolla
A true legend, the Corolla is known for being durable and reliable. It is consistently ranked among the top choices for used car buyers.
With its reliability and reputation for fuel efficiency, a second-hand Corolla will always have a great resale value in the South African market.
It is also trendy amongst its fan club, which ensures a steady demand for it, making it a safe bet for resale.
Volkswagen Polo
The VW Polo has been a South African favourite for several decades. VW SA announced in 2022 that the two-millionth unit of the model rolled off the production line in Uitenhage.
The manufacturer also said it exported most of the Polos and sold around 300,000 Polo Vivos domestically.
The Volkswagen Polo has been sold as a hatchback or sedan variant and has held its value well. Its strong brand and good performance made it a sought-after choice for resale. It appeals to both first-time buyers and seasoned drivers.
Toyota Hilux
The Toyota Hilux is a legend for its ruggedness, with several motoring journalists putting it above usual standards.
Also known for its impressive towing capacity, off-road capabilities, and spacious interior, the Hilux has one of the best resale values in South Africa’s competitive market.
Its versatility and reliability make it a popular choice for buyers seeking a dependable workhorse that holds its value over time.
Its substantial resale value makes it a wise investment for buyers seeking a dependable utility vehicle.
Honda Jazz
The Honda Jazz is a practical and agile car. It’s also usually reserved for the elderly, which means it has been taken care of and not driven a lot.
It is ideal for driving in cities. The Jazz has a spacious and super versatile interior and is fuel-efficient.
Couple this with its long-held reputation for durability, it holds its resale value well in South Africa.
Nissan NP200
Also known as the Nissan Champ, the NP200 has been one of South Africa’s best-selling bakkies for decades.
The Nissan NP200 offers excellent value for money in the second-hand market. Its robustness, generous payload capacity, and affordable maintenance make the NP200 popular among small business owners and individuals.
In Conclusion
When purchasing a second-hand car for resale value, it’s crucial to consider factors such as brand reputation, reliability, and market demand.
By choosing one of these five models, in our opinion, you can be sure you’re making the best investment choice that meets your immediate needs and will hold its value over time.
Whether navigating city streets or traversing rugged terrain, these vehicles offer the perfect blend of performance, durability, and resale value for the discerning South African buyer.
Also, if you need to be sure it has the best battery fitted, you can always contact us.