The one vehicle type you won't lose money on right now

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Throughout 2024, the used car market favoured buyers, with prices down and listings up, but the worse news for most sellers in December is that just one type of vehicle held its value – the mighty ute.

While individual models from the passenger and SUV segments still command good money, overall retained values are continuing to trend downwards, with almost every vehicle type across every age category experiencing a drop in value in December.

Data from the December edition of the Automotive Insight Report (AIR) shows the only exceptions to that were utes aged from two to five years old.

RELATED: Which used cars hold their value the best?

The Ford Ranger remains Australia's best-selling used car, followed by the Toyota HiLux, and both are consistently in the top-five new cars as well.

In fact, three of the top 10 best-selling used vehicles were utes – the Ford Ranger, Toyota HiLux and Mitsubishi Triton.

Last month, retained values of light commercial vehicles was up for those from 2021 and 2018 and flat for ones registered in 2019.

Meanwhile, values for passenger vehicles aged from 2017–2022 were down by a maximum of 2 per cent (MY17), as were SUVs with the highest drop 1.5 per cent (MY21). 

Yet the cars with the best resale value on an individual rather than group basis of those aged two to four years old were all passenger cars or SUVs. 

For passenger cars, the number-one spot went to the Ford Mustang which kept 97 per cent of its value, Toyota Corolla (94 per cent) and Kia Picanto (93 per cent).

While for SUVs, nothing could touch the Suzuki Jimny sitting on 111 per cent, with the Toyota Corolla Cross not too far behind on 105 per cent, and Toyota LandCruiser on 100 per cent.

The Australian Automotive Dealers Association (AADA), which produces the report, told Drive retained values typically trend downwards each month as vehicles notch up more kilometres and age, but "depending on the number of vehicle sales and available variants in a given month, the weighted average RV may show either positive or negative changes month-on-month". 

November's results showed even utes were trending down, but they were up in December, which the AADA says could be an anomaly, we don't know yet – but others think there are good reasons that utes hold their money better than other types of vehicles.

According to family-owned and run dealer group Tynan Motors, any cars in the two- to four-year-old category tend to hold their value best because they typically benefit from needing fewer repairs and have lower mileage on them than older models, which makes them more appealing to buyers.

In contrast, older models, especially those released before a new generation comes out, tend to lose their value more quickly.

But overall, off-roaders – which most utes are – are often the types of cars with the best resale value.

According to Drive's team of experts, utes hold their value better because there is consistently high demand for them both for personal and commercial use.

Many prefer them for their practicality and versatility, being able to tow and go off-road, and for being highly customisable with accessories that can also enhance resale value.

Other factors that could be influencing high retention values for utes in the second-hand market are production delays and stock availability on the new-car side.

While the worst of the delays experienced during the COVID years are now behind us, manufacturers can still encounter problems in the production and delivery processes – including strikes at ports currently affecting Australia.

As of January 2024, Toyota Australia says the wait time for a new 4×4 or 4×2 HiLux is less than three months, which is what it would call a "normal timeframe".

According to Shop for Cars, how much you can get for a used ute car comes down to two basic things: mileage and condition.

Recent-model Ford Rangers with under 20,000km on the clock can sell for more than 90 per cent of their original value, it says, while a Toyota HiLux with the same kilometres driven would get around 85 per cent.

The post The one vehicle type you won’t lose money on right now appeared first on Drive.