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    • Resale Value for Japanese Cars vs. European Cars

    Resale Value for Japanese Cars vs. European Cars

    • By EMB Team
    • on August 11, 2020
    • Categories: Car Feature Articles

    When buying a car, you should consider its resale value to avoid a huge loss while reselling it in the future. The resale value primarily depends on a vehicle’s depreciation, which begins the minute you take the car off the dealer’s lot. Interestingly, not all cars have the same resale value, no matter at what price you buy them. At times, an outwardly expensive and feature-rich car may not fetch a good price when you consider replacing it after a couple of years. On the other hand, a simple and average model you have for everyday use could surprisingly attract many buyers willing to pay more than your expectation. That said, the resale value of a vehicle may vary depending on the carmaker it belongs to and the country of origin.

    Today, we will compare the resale value for Japanese and European cars. It will allow you to pick the right option for yourself. So, let’s see how these two major car markets have fared against each other:-

    Resale Value of Japanese Cars

    Japan has spawned one of the biggest carmakers in the world including Honda and Toyota. The demand for Japanese new and used cars is high around the world. The used vehicles are especially popular due to their high resale value. Below are some of the factors that lead to higher resale value for Japanese cars:-

    Reliability and Longevity

    Japanese cars are built for longevity and resilience. They are categorized as some of the most reliable cars in the world. For this very reason, their resale value is much higher than the American and European brands.

    Lower Maintenance Costs

    Japanese cars require lower maintenance than a standard European model. Therefore, they are popular among the used car buyers who want a cheaper and hassle-free ride.

    Easy Availability of Parts

    Another reason for higher resale value is the easy availability of parts for Japanese vehicles. The spare parts are widely available in most parts of the world. Therefore, it is very easy and cost-effective to replace a defected part (when needed). Importing parts that are generally unavailable, is also not too difficult for owners of Japanese cars.

    Other Benefits

    Japanese vehicles also have a plethora of other features and advantages that deem them valuable in the eyes of new and used car buyers alike. These include superb fuel consumption, durability, lower prices, and excellent overall quality to name a few.

    All in all, used car buyers see several rewards in opting for Japanese cars, which drive up their resale value. New car buyers also consider the resale aspect, as they believe they are making a good investment that would pay well in the future. They don’t want to lose out much for the time when they plan to replace their current model with a different one.

    Resale Value of European Cars

    While European automakers have been rolling out fantastic luxury cars for decades, resale value is one area where they lose out, unfortunately. Let’s find out why European cars have a lower resale value as compared to Japanese models:-

    Quicker Depreciation

    European-manufactured cars tend to depreciate quickly and are thus unable to fetch a good price in the market when the owners finally want to get rid of them. Most of the European manufactures focus on the luxury aspect, and these models have a steeper depreciation curve than their Japanese counterparts. One reason for accelerated depreciation is that owners prefer to trade these cars when they have become outdated. However, used car buyers are mostly unwilling to pay a high price for a model that has gone out of style.

    Availability of Newer Models

    European car brands release newer models and upgrades fairly quickly, while the Japanese tend to stick to a model for some time before churning out an upgrade. This is another reason why European cars become outdated speedily and have lesser demand among buyers. Also, when people consider buying a relatively higher priced model, they prefer to get a new one instead of a used car if the difference isn’t too steep.

    Costly Maintenance

    European cars are expensive to maintain due to their costly spare parts and wear and tear expenditure. Most of the time, the spare parts of such cars are not easily available, and if a flashy BMW gets into an unfortunate accident, the cost of repairs is higher, as well. This results in a higher overall cost of ownership of these cars, which affects their resale value.

    The Verdict

    When it comes to resale value, Japanese brands emerge as the clear winner due to the obvious advantages discussed above. According to Business Insider, automobile brands with the highest resale values include some of the top Japanese companies, which further prove our verdict here. Therefore, the next time when you think of getting a new car, you should keep this resale factor in mind, as well.

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