Cars with the best resale value

By Bruce Newton

When you buy a house, you think of it as an appreciating asset right? At some time in the future, when you sell it, you’re hoping to get more for it than what you paid.

Wouldn’t it be great if buying a car was just as lucrative?

Sadly, for most of us, it’s about minimising your loss – also known as depreciation - rather making a profit.

If you want to make real money then you have to really think about exotic and classic cars, which is not what we’re focused on here.

Another way of making money out of used cars is to exploit a dramatic imbalance in supply and demand.

Think of when people were paying over the odds for Toyota LandCruisers during COVID as a good example of that. Hopefully, those circumstances don’t arise again any time soon.

But having mentioned Toyota that brings us to one of the golden rules of buying a car with future value in mind. Buy a Toyota.

Buy a Toyota

The Japanese auto giant dominates new vehicle sales in Australia for a whole bunch of reasons: a wide range, perceived reliability, perceived pricing value, a massive dealer network and great backup, including one of the cheapest capped price service programs going around.

Toyota is also consistent with its pricing. Lots of sales and discounting doesn’t help resale. Subaru is another brand good at this, which also has good resale. MG is a brand that isn’t and has poor resale.

Toyota also has a used car sales program that helps sustain the value of its vehicles as they age. It’s a virtuous circle.

Being Japanese also helps Toyota’s quality reputation even if it sources models from around the globe. Other Japanese brands including Mazda have benefitted in this way.

There’s also a building reputation for vehicles from Korea, but European (remember we’re talking mainstream not premium), North American and Chinese brands don’t do as well.

Hybrids, plug-in hybrids and electrics

Toyota has gone all-in on petrol-electric hybrid powertrains and that’s really paid off for it. And it will pay off for owners when it comes time to sell.

“Hybrid is number one,” explains Ross Booth, global general manager of vehicle valuation experts Red Book. “If you rephrase that, Toyota hybrid is number one. So, hybrids do really well, but it's Toyota that drives it.

“Ninety per cent of all hybrids on Australian roads are Toyotas. So, it's Toyota hybrids that are number one.

“Second is internal combustion engines, then plug-in hybrid, then battery electric vehicles.”

As tough incoming emissions laws prompt more brands to launch more electrified models and supply outweighs demand, sales of electric vehicles have now slowed and discounting has become rife. That is not good for future value.

“If you discount the car new to sell it, that will actually come through in the used car market.”

While Toyota has been bullish on hybrids it’s been very cautious when it comes to EVs. So far it has launched just one pure electric model, the bZ4X, in Australia.

All this contributes to Toyota’s remarkably high resale rates when it comes time to trade – and for many people it will be for another Toyota.

What makes a car hold its value?

“Toyotas hold their value because the perception is they're good value for money. They're very reliable vehicles and their servicing costs are fair,” says Red Book’s Ross Booth

So on the list we’ve prepared to go along with this guide, there are a lot of Toyotas, some of them very high-volume sellers such as the RAV4 medium SUV and the Corolla small car.

Other brands struggle to get a look-in and when they do, it’s generally because they have a specific vehicle that offers unique appeal to a devoted group of buyers.

The Suzuki Jimny has the highest retained resale rate of up to 87 per cent after three years and 60,000km on the odometer of any car Red Book values and that’s because of its combination of unique style, off-road capability, affordable price as new and Suzuki’s reputation for simple reliability.

The Ford Ranger is also boosted into the top value buys because the flagship Raptor super-ute is in such high demand.

“People want these models and therefore they're worth more,” says Booth.

“You've got to pick a car from a brand and a segment that works.”

And then, when you’re working through the detail, it’s important not to add too many expensive options to the car you pick. You won’t get your money back.

And once you’ve done all that, you must look after the vehicle correctly to maximise what you can price it at. So service it according to the schedule, garage it if you can and don’t drive it too far – the lower the kilometres the better.

And one more thing. While depreciation is the most important part of what’s called the total cost of car ownership, it’s not the only thing. Buying a car that will hold its value but costs you a fortune to run while you own it isn’t optimal.

“Total cost of ownership is a combination of the purchase price, the running costs - fuel consumption, insurance, tyres, batteries, servicing and, of course, depreciation,” explains Booth.

“But depreciation is the number one cost of ownership.”

Some of the best cars for resale

So, after all that, what are some of the top options to buy now for resale value after three years and 60,000km of driving years? These are compiled by Red Book, with each vehicle’s good-to-average retained values estimate listed as well.

Suzuki Jimny - 87-83 per cent

The Suzuki Jimny’s been around barely changing in concept since 1970, but it’s the five-door XL introduced in 2023 that’s really energised its resale rating.

It added bonafide rear-seat and luggage space, while retaining the mechanical package of the time-honoured three-door including substantial off-road ability.

The Jimny is a classic example of a unique selling proposition. There’s simply nothing at its price-point that offers the same likeable boxy style and ability to tackle the rough stuff.

That doesn’t make it a great vehicle though. In fact for most people there are actually more orthodox choices that better suit their needs.

Toyota RAV4 - 84-81 per cent

Toyota made the decision to go all-hybrid with the RAV4 and several of their other passenger car/SUV models in 2024. Australia’s top-selling medium SUV hasn’t looked back as a new or used car proposition.

There is a real chance it will supplant the Ford Ranger as Australia’s top selling car in 2025 and become the first ever SUV to top the list.

And all this in the last year before Toyota introduces a new-generation RAV4 that will be the brand’s first plug-in hybrid in Australia.

Being a Toyota helps the RAV4 with its retained value, but so do its inherent qualities as a car. It drives well, has reasonable features and space and there’s no doubt the hybrid system delivers fuel savings without having to make the wholesale electrified commitment an EV requires.

Toyota C-HR - 84-79 per cent

The Toyota C-HR does well not because it is especially popular but because it has a loyal following. With a sporty style, it’s a niche Toyota not a mass market one.

The entry-price is inordinately high for the current generation C-HR because it is made in Turkey and cops an import tariff as well as extra shipping costs compared to the old model which was made in Japan.

All C-HR models are now hybrid, like all its Toyota brethren bar the heavy-duty utes and 4x4s, and the GR86 sports car. Removing cheaper petrol engines from the line-up has also driven up pricing.

Toyota LandCruiser 300 Series - 83-80 per cent

Icon is a vastly over-used term but the LandCruiser 4x4 fits the bill. Here we’re talking about the current 300 Series wagon rather than the agricultural 70 Series which has its rusted-on fans as well.

During COVID, as demand swelled and supply dwindled of the old 200 Series, owners were making a profit on their used vehicles as buyers, denied their overseas holidays, decided to go caravanning around Australia instead.

The 300 Series took the technology and refinement of the LandCruiser to a new level when it arrived in 2022. It also took pricing into the stratosphere. But the up-front pain is eased by the resale pleasure a few years later.

Toyota LandCruiser Prado - 83-80 per cent

These days the Prado only slightly trails the LandCruiser 300 Series for prestige in the Toyota 4x4 line-up. It also outsells it easily.

Huge anticipation for the boxy new fourth generation Prado led to massive pent-up demand and record sales despite high pricing and the interior compromises that have been widely reported.

However, there are a lot of improvements that balance those issues out, so it’s clear the Prado will continue to be one of the best retained value vehicles for owners when it comes time to sell it.

Toyota Corolla - 82-78 per cent

Another hybrid-only passenger car from Toyota, the Corolla has been on-sale here through 12 generations and nearly 60 years.

Consistently among Australia’s top-selling small cars and the top seller outright in 2013, 2014 and 2015, the Corolla is available as both a hatchback and sedan. The latter is better for families because it offers much more interior space.

There are plenty of examples, many of them coming from fleets where Toyota’s reputation for reliability and resale value is highly regarded.

Ford Ranger - 81-77 per cent

Just as it beats the Toyota HiLux in the sales race, so Ranger tops it in the resale ratings. As noted above, it’s the V6 twin-turbo Raptor super-ute that makes the difference. They’re expensive, they’re in high demand and there’s not a lot of them going around.

Beyond the Raptor, Ford offers a comprehensive line-up of Rangers that continues to expand. Multiple styles and two diesel engines are about to be joined by a plug-in hybrid petrol-electric dual cab 4x4, while the Super Duty is added in 2026.

It will be fascinating to see what impact the Super Duty has on resale value for Ranger. Ford says interest has already been “overwhelming” which is to be expected. But if a bunch of existing Ranger owners exit their current vehicles at the same time seeking the Super Duty’s superior 4500kg braked towing capacity it could drive resale down.

Toyota Yaris Cross - 81-77 per cent

Just one more Toyota to wrap things up. The Yaris Cross is the smallest and cheapest Toyota SUV you can buy.

And yes it’s a petrol-electric hybrid only. In fact it’s the only one in its segment, which adds to its appeal, and also to its up-front cost.