We live in a time where tech dominates our choices – whether it’s phones, TVs, or cars. And when it comes to vehicles, it’s easy to get swept up in the excitement of the latest gadgets, voice commands, panoramic sunroofs, massive infotainment screens and futuristic interiors. New entrants to the market are leading that charge, offering buyers incredible value on paper and some of these cars really do look the part.
Many of the emerging models are feature-packed and can rival well-known brands in terms of upfront tech. Buyers are dazzled and genuinely amazed that they can open the windows with voice commands or that the car parks itself. The appeal is undeniable.
But let’s press pause and take a step back. Late last year, a client walked into our dealership, full of excitement and pride, showing off his newly purchased vehicle. It was shiny, top of the range and had just about every bell and whistle you could imagine. He paid R680 000 for it in early December and racked up around 3 000 km by the end of February – barely run in.
Then, life happened. As it often does, circumstances changed, and he wanted to trade it in. We contacted the franchise dealership of the same brand to determine the trade-in value.
Their response? R380 000 maximum. Let that sink in.
In less than three months, a R680 000 vehicle had depreciated to R380 000. That’s a staggering R300 000 drop. Honestly, I couldn’t believe it at first. I thought maybe there was a mistake. But no, it was accurate, and this wasn’t an isolated incident.
So, what does this tell us? It tells us that while these vehicles offer attractive features upfront, they can be devastating when it comes time to sell or trade in. And that brings us to something we don’t talk about enough when buying a car: resale value.
Most people don’t keep their cars forever. Whether it’s after three years, five years, or even ten, that vehicle will likely be sold or traded in. And when that day comes, you want to be confident that you haven’t just thrown away a massive chunk of your money. Resale value is not just a “nice to have”; it’s a critical part of the car-buying equation.
That’s where trusted, reputable brands – and reputable dealerships – come into play.
Brands with a long-standing reputation tend to hold their value better because they’ve built trust over time. Their vehicles have proven reliability, parts availability, aftersales service and buyer demand in the used market. That demand is what keeps prices steady and trade-in values strong.
When you buy from a reputable dealership, you’re buying peace of mind. A good dealer will be upfront with you about depreciation, expected resale, insurance costs, servicing, parts availability and more. They’ll help you understand the total cost of ownership, not just the sticker price.
More importantly, you’ll have someone to call when something goes wrong or if your situation changes – like needing to trade in a vehicle unexpectedly.
Reputable dealerships are invested in long-term relationships, not one-off sales. That means transparency, detailed vehicle histories, certified inspections and access to finance and insurance that works for you, not just the dealership.
This is not to say that all new entrants on the market are bad, or that they don’t have a place. Some may offer great value for specific needs. But before you swipe your card or sign that contract, ask yourself this: “What happens three years from now when I want to sell this car?”
Cars are one of the biggest purchases most people make outside of a home. Make sure you’re making that purchase with your eyes wide open, not just dazzled by the tech on the dashboard. Speak to a dealer you can trust, ask the right questions, and always look beyond the initial price tag.
After all, saving R50 000 today means little if you lose R300 000 tomorrow.
Drive smart. Think long-term. And choose wisely.