Part of buying a new vehicle requires consideration of how well they hold value a few years down the line for possible resale. Today, we are looking at the corner of the Swedes with Volvo. So, how well do they do?
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In South Africa, preconceived notions exist of manufacturers that are perceived to boast high residual values. The rest, it’s often thought, are engulfed by a crashing wave of depreciation in their very first year of registration (and a few more in the years thereafter), making them all but certain to be saddled with a lower resale further down the line. This, as a result, is a contributing factor when buying a car similar to an investment that will yield the most reward after a fixed period.
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In the case of Swedish automaker Volvo – a brand with a reputation for lower resale values, specifically here in South Africa – statistics prove that it is actually one of the stronger-performing manufacturers in this regard according to data from TransUnion South Africa.
According to the figures, a one-year-old Volvo XC40 has a residual value of 86% of its manufacturer’s suggested retail price. The XC60 isn’t far behind at 83%, while the XC90 sits at 81%. Note that these numbers, according to TransUnion SA, represent an average of all engine derivatives in each model line.
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Considering the segment averages, these are extremely attractive residual values and perhaps even enough to put the Gothenburg-based firm’s SUVs ahead of direct rivals in the premium category. When speculating why Volvo boasts this statistic in South Africa, it could be partially accredited to generous levels of standard equipment (including a full suite of safety features), which in turn helps to boost the vehicle’s value come resale time.
