Auto

Why do Volvo Cars have poor resale value in South Africa? Experts weigh in

By Pritesh Ruthun 12m in the past

Share this text:



JOHANNESBURG – “Volvos have poor resale values.” This is an announcement usually heard in South Africa. I have been listening to it rather a lot these days, as a result of I’m driving a Volvo XC40.

While everybody who has had the chance to journey in it loves it, they usually say: “It’s going to lose a lot of money on the used market.”

I have to admit this was the case in the previous. More {that a} decade in the past, I owned an S40 sedan that I liked. While it served me extraordinarily properly, it didn’t appeal to curiosity in the used market. needed to half with it for beneath commerce value in the tip. It was maybe an early indicator that South Africans had been shedding curiosity in sedans, significantly non-German sedans, as most D-segment sedans have disappeared from the brand new automobile value record in Mzansi.

Last week, I bought in contact with two business insiders to search out out extra in regards to the resale values of Volvo Cars in South Africa. Here’s what they needed to say:

Busting the parable of poor resale value

“Nothing could be further from the truth. The reality, in fact, is that the brand performs extremely well in the used-car arena and many Volvo models are best-in-class when it comes to resale values,” says Greg Maruszewski, the managing director at Volvo Car South Africa.

He says the notion of poor resale values for Volvos is a uniquely South African problem.

“This situation doesn’t apply anywhere else in the world. To the contrary, Volvos are perceived to have good resale values in other markets – and this is also the reality in South Africa.

“In Europe, dealers don’t want the cars to cross borders, so they will often pay a premium to retain the car. However, turning to the local situation, possibly because of a legacy of low resale values some South Africans believe that this remains the case today. And it certainly doesn’t.”

SUVs in excessive demand in all segments

While three-year-old XC40s and XC60s are best-in-class in terms of resale values, one-year-old Volvos retain a presentable 87 to 90% of their producer recommended retail value, says Maruszewski.

But what components affect resale values?

This is a considerably complicated challenge, as a result of values are affected by tangible and non-tangible components. The notion of the model and recognition of the mannequin, as an illustration, come into play. So too does the situation of the automobile, mileage, engine kind and transmission (most individuals need an automated). Awards also can play a job – the XC40, XC60 and XC90’s bulging trophy cupboards have additionally bolstered their resale values.

Kriben Reddy, the pinnacle of Auto at TransUnion Africa, says a number of Volvo fashions retain sturdy resale values when in comparison with their rivals in the native pre-owned automobile market.

“Volvos are becoming increasingly popular on our roads. They put a lot of focus on the SUV segment, and are strategically offering the South African consumer attractive, high-specification vehicles at significantly lower prices than their rivals. This is going to drive higher resale values as more consumers see the value in these remarkable vehicles,” says Reddy.

Then there are some vehicles which are star performers in the used-car market. The Volvo C30 hatchback is one. You will usually pay over guide value and can promote over guide value too. Buyers take nice delight in buying one of many Volvos – since you get a whole lot of automobile for comparatively little money.

However, finally, resale values will be impacted by coaching and schooling. For this purpose, Volvo Car South Africa frequently educates its seller community and used-car managers from exterior the community, who commerce in Volvos. Focus areas embody efficiency and security in addition to pricing (Volvo has carried out fewer value will increase than some German rivals).

“It’s a case of informing/educating, managing perceptions and, most importantly, debunking myths,” Maruszewski says.

We’ll be placing the brand new Volvo XC40 T4 to the check in the approaching month on a 1 000km highway journey. Be positive to comply with @IOLMOTORING and @pritzthecarguy on social media so that you don’t miss a beat.

2021 XC90 T8 plug-in hybrid

IOL MOTORING



Back to top button