2024-01-27 13:01:44
Which car has best kept its value this year? In 2023 we returned to ask the classic question. Since the outbreak of the corona virus and the chip crisis, the used car market has moved to an unusual situation: suddenly there were quite a few models in demand whose value increased instead of decreasing as we are used to, due to a lack of new cars of the model, or price increases by the manufacturer.
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“In 2023, the market returned to normal, there are no cars that ended the year at a higher price than they were at the beginning, and only a few models lost less than 10%,” says Mi-Ron Levy, VP of the Levy Yitzhak Group, which lost its founder this year, Levy Yitzchak Z “To.
Examining 50 2021 models across all major market segments, the electrics start to star, with the Geely Geometric C, which lost just 6% of its value between January and December, and the Hyundai Ioniq 5, which lost just 5%. This was also the rate of loss of value of the Ioniq Hybrid. Kia Picanto, which regularly stars in the list of cars that retain value, lost only 4%. The Toyota Corolla hybrid lost only 3%.
But the surprise: the car that decreased in value the least was actually the gasoline family Skoda Octavia, which lost only 2% of its value. The Octavia is a successful family car, and it is likely that the lack of new cars at the importer helped increase the demand for used cars.
Levi Yitzhak price list (Photo: Levi Yitzhak Group)
“In luxury cars, the decline has returned to the levels we were familiar with, most models lost between 10% and 20% in one year,” Levy says. “Even in the last few months we see a halt, people feel that this is not the time to change a luxury car. I also hear from importers about people who ordered, paid and asked to keep the car in storage for the time being, until the national situation improves.”
Tal Bar-Lev, VP of Shlomo Auto Sales, the institutional body that sells the most used cars, says that “before the war, it was an excellent year in the second-hand market. There were no dramatic price drops. The market balanced out. And there were models that held a nice price. After the war the market stopped. In the first two weeks, we still delivered cars that were ordered at the Sukkot sales event, and then we felt the fall. The month ended with a decrease of 30%-40%. Then we saw a recovery: in November the drop was already only 20%, and in December we already met the work plan established before the war.”
How will the war affect the market in 2024?
Tal Bar-Lev: “The market will strengthen as time goes by. There are people who realized that there is a long war and they need a car – evacuees, reservists who serve in shifts, and those whose car was damaged in the war. We are starting to see supply difficulties with the importers due to the cancellation of ship lines for transporting vehicles from the east, in light of the Houthi attacks. It will begin to resemble the scenes from two years ago, when in the absence of a new vehicle inventory, people will purchase a used vehicle of the same model.”
Mi-Ron Levy: “If there is a full-scale war in the north, the economic crisis will worsen, and we will see people who in a different situation would buy a new car, buy a used one, which will increase the prices. The prices of the new ones will also have an effect: people enter the showrooms, see that family cars like the Corolla and Elantra cost almost NIS 170,000, and go looking for alternatives in the lots.”
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