The 10 best cars for resale value in Australia

Used car valuation experts have crunched the numbers and revealed the cars that will save you big dollars down the track. SEE FULL LIST.

Used car prices have soared in the past couple of years but the market is tipped to return to more normal conditions over the coming months.

When that happens, there are ways to minimise your losses when buying a new car. Car valuing bible Redbook has crunched the data on thousands of cars to come up with the 10 nameplates predicted to retain the most value over the first three years and 45,000km of ownership.

The general manager of Redbook.com.au, Ross Booth, says the top performers all have that special X factor.

“They’re either 4x4s, EV technology, sports car or an affordable luxury car,” he says.

Hard core off-roaders designed to adventure and tow dominate the list, but an electric vehicle makes the cut.

1 TOYOTA LANDCRUISER (resale 80-83 per cent)

The new Toyota LandCruiser has a long waiting list.

It only launched late last year but already waiting times have blown out to a year or more for the 300 Series LandCruiser.

Buyers appear unfazed by the switch from V8 power to V6.

“Supply is quite short at the moment and we anticipate it will be for some time and demand … has gone through the roof,” Booth says.

And the reason for that demand?

“The perception of Toyota reliability is one of the key driving factors that keeps residual values strong.”

2 RAM 1500 (78 to 81 per cent)

Demand for big American pick-up trucks is growing fast.

Big American pick-up trucks are turning into big business in Australia and the RAM has one of the best names in the business, according to Booth.

That’s partly because it was the first of the big three – the others being Ford and Chevrolet – to ride the current pick-up wave.

A lack of supply and an appetite for heavy lifting help cement resale values.

“It’s a purposeful vehicle … it’s a very, very good tow vehicle.”

3 TESLA MODEL 3 (78 to 81 per cent)

Electric cars are in hot demand and are holding their value very well.

The Model 3 accounts for about two-thirds of the EV market in Australia.

That’s largely because it’s one of the more affordable of the “desirable” EVs (as opposed to the less exciting cheaper ones).

But Booth says the biggest driver of strong used prices is the Tesla brand.

“It’s actually not a vehicle, it’s a statement in technology … in the used market it’s the number one EV.”

4 JEEP GRAND CHEROKEE (76 to 79 per cent)

The big family SUV holds its value nicely.

The new generation brought price increases and the end of a diesel in the Grand Cherokee. But extra seats, more tech and an improved driving experience make the Grand Cherokee desirable.

Booth puts it down to two years of lockdowns and peoples’ desire to explore.

“It’s that Covid factor of ‘I want to go away, I want a fair dinkum four-wheel drive’,” he says.

The Grand Cherokee has historically “had its quality perception issues” but a fresh design has increased its appeal.

5 LAND ROVER DEFENDER (76 to 79 per cent)

The new Defender is a big step up over the previous version.

Nothing shouts adventure like a Land Rover Defender.

And while many may rue the demise of the previous model – with DNA harking back to the original Land Rover of 1948 – they have been drawn to the new model’s striking retro design and its ability to tackle tough terrain.

“It’s a purposeful vehicle that does what people want it to,” says Booth.

Long waiting times for new versions make used examples tempting.

6 KIA STINGER (75 to 78 per cent)

Aussies still need their hit of rear-wheel drive sedans.

Post-Falcon and Commodore Australians still have quite an appetite for a muscular sedan that combines family duties with performance.

“The demand from the Australian public around rear-wheel drive performance sedans is very strong,” says Booth.

The twin-turbo V6 is a big part of its appeal but Booth says buyers are also attracted to its solid value.

7 ISUZU MU-X (75 to 78 per cent)

Isuzu has a reputation for reliability.

It’s not as sexy or innovative as other off-roaders on this list but the MU-X is a solid all-rounder benefiting from our post-Covid desire to explore Australia.

“It’s providing value at a good price compared with others in the market,” says Booth.

8 SUBARU WRX (73 to 77 per cent)

The Subaru WRX has a big fan club. Picture: Thomas Wielecki

Since 1994 the WRX has built a reputation as the go-to pocket rocket and Booth expects the popularity to continue.

“It’s a new generation sports car … if you do want a … sedan sports car, the WRX is it.”

Booth also points to the general strength of the Subaru brand in the used car market.

9 JAGUAR E-PACE (73 to 76 per cent)

The Jaguar E-Pace isn’t a big seller, but is popular with used car buyers.

The E-Pace is relatively unknown compared with its German rivals, but that can help in the used car market.

“It is a luxury car from a mega luxury brand … which does carry forward,” he says.

Jaguar SUVs typically hold their value more than the brand’s sedans.

The striking design and relative value for money also play a role.

10 JEEP WRANGLER (73 to 76 per cent)

Aussies are big fans of tough 4WDs.

Wrangler’s success is style-driven.

The cool retro looks – with more than just a nod to the original Willys Jeep of the 1940s – make it a vehicle “that people aspire to”, Booth says.

It backs that up with impressive off-road ability.

Live axles front and rear may not help its on-road credentials, but they make it immensely capable off-road, even if many owners will never leave the bitumen.

Originally published as The 10 best cars for resale value in Australia