Should You Buy a Car Based on Its Perceived Resale Value?
Everyone has an opinion about cars, don’t they?
Your cousin says “Toyota or nothing.” Your colleague swears by German machines. Your bank says please, be serious. Then the salesperson smiles: “This one? Strong resale.” Lovely.
But you’re the one paying for fuel, tyres and traffic. So, do you buy for the next buyer, or for the life you actually live?
The words “high resale value” aren’t a cheat code. It’s one number in a bigger equation. And sometimes, the car that makes your mornings easy isn’t the one that makes your future buyer clap the loudest.
The charm of a “high resale”
Here’s why it’s tempting: you pay a bit more now, and you lose less later.
The catch, however, is that the perceived resale value changes with fashion, fuel prices, policy, and plain old supply and demand.
- That Toyota Axio you see everywhere? A flood of imports could land, and the price levels.
- A punchy turbo crossover looks hot today, until buyers hear the tyres cost more than a small fridge.
- Incentives on relatively new models imported can quietly pull the rug from under last year’s darlings.
For any used car in Nairobi or elsewhere around Kenya, trust—built on reliability, cost to run and sensible specs—beats any hype every time.
What actually drives resale?
- Supply & demand: Yeah, the old business terms. If importers bring in thousands of Toyota Sientas, for example, prices soften. If clean, low-mileage Mazda CX-5s are scarce, they hold stronger.
- Reliability & service costs: Honda Fit and Toyota Fielder have reputations for simple upkeep. Buyers pay for peace of mind.
- Running costs: Thirsty engines, pricey tyres (hello, 19-inch alloys), or high insurance can shrink your buyer pool.
- Spec choices: Neutral colours, automatic gearboxes, and mid-level trims sell faster than quirky colours or rare options.
- Timing: New model launch? Plate-change? Fuel price spike? All can nudge values—up or down.
Meanwhile, back in the real world, you still have to fuel it, service it, insure it, every month.
When you should buy for resale
If your horizon is short, liquidity beats sentiment.
- Under 3–4 years of ownership: Think Toyota Axio, Fielder, Vitz/Yaris, Honda Fit, Nissan Note—cars with deep used-buyer demand.
- Ride-hailing or business use: You want quick saleability and predictable costs. Fleet-friendly models (Toyota Sienta, Corolla Axio, Nissan Note, Honda Grace) are your friends.
- You relocate often: Easy to sell, easy to move on.
Short answer: if you’ll sell soon, pick mainstream specs and colours. Don’t get clever; get sellable.
When you should buy for fit (even if resale isn’t stellar)
If you’ll keep the car 6–10 years, comfort, capability, and Total Cost of Ownership (TCO), which is the total cost of both direct and indirect costs of owning that car, wins.
- Your roads and routes matter: Kiambu backroads? Higher ground clearance—Subaru Forester, Toyota RAV4, Nissan X-Trail—will save your spine and your bumper.
- Your people and cargo matter: Growing family? Think sliding doors (Toyota Sienta), big boots (Fielder), or proper leg room (RAV4, CR-V).
- Your sanity matters: Supportive seats, adaptive cruise, solid infotainment—daily wins add up.
Here, a car that fits your life can “pay you back” every day—even if the next buyer isn’t throwing roses.
Quick decision maths (TCO beats pub talk)
TCO (Total Cost of Ownership) ≈Purchase Price − Expected Resale + Fuel + Insurance + Maintenance + Tyres + Taxes/Fees + Interest
No spreadsheet? No problem. Rough numbers still beat vibes.
Example (3-year horizon):
- Car A (high resale): Buy ksh 1.5m → Sell ksh 1.1m → Depreciation ksh 400k.Running (fuel, insurance, servicing, tyres, fees): ~ksh 420k.TCO ≈ ksh 820k.
- Car B (better fit, lower resale): Buy ksh 1.35m → Sell ksh 850k → Depreciation ksh 500k.Running: ~ksh 300k (sips fuel, cheaper tyres).TCO ≈ ksh 800k.
PS: To hit your figures, you’d need very low mileage (≈4,000–6,000 km/year), third-party insurance (not comprehensive), and/or a hybrid/e-e-Power with excellent economy.
Remember, the “worst resale” car can still win overall if it’s cheaper to live with.
Mini-guides for the three audiences
1) First-time buyer (keep it simple, keep it safe)
- Sweet spot: Toyota Vitz/Yaris, Honda Fit, Nissan Note, Toyota Passo, Mazda Demio (if well maintained).
- What to prioritise: clean service history, sensible tyres, working safety features (ABS, airbags), good fuel economy.
- Avoid the traps: loud wraps, monster wheels, neglected imports.
Bottom line: buy clean and boring. Your wallet will thank you.
2) Ride-hailing & business (time is money)
- Workhorses to shortlist: Toyota Sienta (sliding doors, space), Corolla Axio/Fielder, Honda Fit/Grace, Nissan Note e-Power (if batteries are healthy).
- What pays back: fuel efficiency, cheap tyres, affordable parts, quick resale.
- What to skip: exotic trims, heavy mods, anything that scares insurers.
Bottom line: uptime and liquidation beat bragging rights.
3) Enthusiasts (joy matters, but be smart)
- Fun that still makes sense: Mazda 3, Subaru Forester/Outback, VW Golf (service history is everything).
- Protect your downside: keep it stock or reversible, document everything, stick to tasteful colours.
- Know yourself: if you’ll keep it 7+ years, buy for grin value.Bottom line: buy the car that gets you out of bed—then keep it immaculate.
How to protect resale value
- Pick popular specs: greys, silvers, whites; mid-trims with auto; common wheel sizes.
- Keep receipts: full-service history builds trust. A thick file sells cars.
- Mind condition: quarterly detailing, fix small issues fast.
- Tyre sanity: choose sizes you can replace cheaply and easily.
- Sell with strategy: list before major model refreshes, avoid peak holiday lulls, photograph in good light.
Tiny habits, big payback.
Bottom line
If you’ll sell soon, resale value deserves weight—stick to popular models and specs that move quickly. If you’ll keep the car, buy for fit and TCO; the right choice pays you back in quieter commutes, lower bills, and fewer headaches.
Pick the car that serves your life today and won’t be a pain to sell tomorrow. That’s the sweet spot. Don’t know where to start? Peach Cars is here to help you choose the right car for your needs!