By: Luke Jones, Published on February 15, 2017 06:02 PM, Last Update on March 1, 2017 09:30 AM
Customers seeking a vehicle that will maintain its value should shop Japanese, according to Canadian Black Book. The online vehicle value resource says that vehicles made by Japanese manufacturers tend to depreciate slower than their European and American counterparts.
Speaking to CBC, Brian Murphy, vice-president of editorial and research at Canadian Black Book, says Toyota and Honda are particularly good options for value retention. Speaking of vehicles from other regions, he said “The other countries, less so."
For customers looking to buy a new car, this is potentially very important news. The Canadian second hand car market is booming, suggesting a large number of people will eventually sell their new vehicle. Desrosiers Automotive Consultants points out that 2.8 million used vehicles were sold in Canada during 2016. These sales create a second hand micro-economy worth some $38.9 billion.
So, when customers look for a new vehicle, as well as assessing the insurance costs, they may also want to consider the resale value. Canadian Black Book has an awards system that measures the value of vehicles that are four years old. The company takes its data from real sales figures. For the 2017 awards, the tracking is for vehicles sold during 2013.
Also, taken into consideration is the category of vehicle. Canadian Black Book classes 20 categories and has named three brand winners across Best Car, Best Truck/SUV, and Best Luxury Vehicle.
Highlighting the value of Japanese vehicles, Toyota topped more categories than any other brand and won the award for Best Truck/SUV. Fellow Japanese carmaker Subaru claimed the Best Car value award, while German brand Porsche took home the Best Luxury segment.
Toyota’s performance really stands out. The company won awards for best mid-size and full-size car, best small and full-size pickup, best mid- and full-size SUV, and best minivan. The Toyota FJ Cruiser won the mid-size SUV segment and broke a record for value retention in the process. Models sold in 2013 are holding 83 percent of their original value.
It is a feat Murphy describes as “unprecedented. Most vehicles after four years are only worth about 50 per cent of what the person paid for them."
"Depreciation is the single largest expense of owning a vehicle, more than gas, maintenance, or insurance." says Murphy.