Introduction
Buying a new car is a dream for everyone and is considered a financial achievement. However, you need to remember that the moment you drive the car out of the showroom, its value reduces with time and usage.
When you are looking for a new or used car, it is important to think about the resale value. This is the amount of money that you can expect to get for the car when you sell it. Škoda cars have a good reputation for holding their value well. So, if you are thinking about buying a Škoda, you can be sure that you will get relatively a good return on your investment down the road.
Keep reading to find out more about why Škodas are so popular with buyers and how their resale value compares to other brands
What is Resale Value?
The amount at which your car is likely to sell in the future is known as the Resale Value or the Residual Value. A car that retains at least 40-50% of its original retail price when it is sold after 5 years is considered one with good resale value.
It is important to include resale value as a factor that influences your purchase decision. Doing so would ensure that it will be worth it when you trade it. It also reduces overall vehicle expenses. Considering the resale value of the car you buy is a prudent decision to make given the returns your car is likely to offer you.
Factors that Determine Resale Value of Cars
1. Depreciation
When you use a car, there is a loss of value over the years called depreciation. From the moment you purchase a car, its value depreciates about 35% after the first 5 years of use. You need to put a lot of time and effort into maintaining your car in a condition to reduce the depreciation.
2. Condition
The mid-spec trim balances value for money with an astounding bundle of features on top of the base model.
3. Brand
Regardless of whether a car is bought new or on resale, it is tagged with superiority and trustworthiness if it is of a reputed brand. Buying a car of a well-established brand is an assurance of a good resale value.
4. Demand
The used car selling market is also dictated by demand and supply. The higher the demand for your car, the better its resale value will be quoted.
5. Economy
When a recession hits, the rate of buying used cars will significantly fall. More people tend to sell their cars during such times. This translates to lower trade-in prices.
6. Kilometres Covered
The number of kilometers covered denotes the amount of a car’s usage. The higher the number of kilometers covered, the lower the trade-in price. Even the impeccable condition of your car will not nudge people into buying it if the kilometers covered are high.
The High Resale Value of Škoda Cars
Škoda cars have marked their unique place in the Indian car market by offering luxury cars in a rather simplified manner. The Czech manufacturers have forged their cars into a symbol of eliteness and reliability. Octavia which was introduced in 2002 paved a path for Škoda cars in the Indian market. Since then, the brand has gained great popularity and trust among Indian car purchasers.
Škoda cars have seen constant demand in the Indian markets. Škoda Slavia launched in March 2022 has alone drawn 10,000 bookings and sold 2,500 units within the first month of its launch. The superb performance, driving comfort, great looks, low maintenance, and good fuel efficiency of cars manufactured by Škoda have made it an ideal purchase choice. It offers user-friendly features and the best service.
The excellent features of the cars manufactured by Škoda combined with the impeccable service offered by the manufacturers have led to prolonged usage by owners. Very few Škoda owners are ready to give up their cars and would rather use them longer. This has resulted in the reduced number of Škoda cars in the used market. Meaning there is good demand for them in the market. Higher demand for Škoda cars in the used market translates to higher resale values.
All of the above facts simply mean that Škoda cars can be used for a long time and can then be sold for a good resale value. However, it is important to remember that certain other factors influence the resale price of Škoda cars too. This includes the variant and features available in your car, to begin with. Regularly maintaining the body and engine of your car in a good condition is extremely important to reduce depreciation and fetch a good resale value. The age of the car and the number of kilometers driven in the car drastically influence resale value.
To sum up, Škoda is a trustworthy brand with high demand in the used car market. A used Škoda car in a good condition, with comparatively lesser kilometers covered, can fetch a very profitable resale value.
Conclusion
Anyone who dreams to own a car someday deserves a car that has an astonishing design, amazing specifications, and user-friendly features. Škoda offers all of this and is one step ahead in terms of the resale value it can fetch you.
To get your first Škoda at the best on-road price, contact Gurudev Motors today for a free test drive!