Which luxury sedan holds its value better: manual or automatic?

Which luxury sedan holds its value better: manual or automatic?

2019-02-22

Vehicle resale is one of the most important aspects to consider when buying a car. But one question has never been answered before: which car holds its value better? Manual or automatic?

In order to answer this question, True Price – the innovative start up that provides South African motorists with free vehicle evaluations – has embarked on a study into various industry segments. The findings will be released over the next couple of months. The company is however kicking off with the luxury sedan sector.

“We decided to start with this segment, because automatics are very popular amongst luxury sedan buyers. We wanted to establish if this was prudent – or not – when it comes to resale values. After all, it’s all very well to opt for the convenience of an automatic. But, what happens when you want to sell the car?” explains Darryl Jacobson, managing director of True Price.

For the purposes of this exercise, the True Price team selected two luxury sedans, the BMW 3 Series and Audi A4. It then extrapolated all the data on its system (which runs into tens of thousands of vehicle sales on auction). Finally it compared the price paid on auction (as a percentage of the original list price) for all vehicles with manual transmissions to those with automatics.

The results were fascinating. “In the case of the BMW 3 Series, the automatic achieved 40.8% of the original list price on auction whereas the manual achieved 33.7% - a difference of 7.1% in the favour of the automatic. With the Audi A4, the difference between the automatic and the manual was even greater. The automatics sold for 46.2% of the original list price whereas the manual achieved just 36.0%. This is tantamount to a difference of 10.2%!” Jacobson reveals.

Bearing this in mind, Jacobson recommends always purchasing a luxury sedan with an automatic transmission. “It makes sense – and cents too!” he concludes.


Original source: True Price

Recent News

Which bakkies have the best resale value?

Which bakkies have the best resale value?

2019-04-24

The resale value of any vehicle – bakkies included – is significant when shopping for wheels. With bakkies, in fact, it is of massive importance – because companies often operate pick-up fleets. A bakkie buyer can literally lose tens of thousands of rands when the time comes to sell. Now, for the first time, it is possible to name the top 10 bakkies in the land – when it comes to resale values.

Which SUVs have the best resale value?

Which SUVs have the best resale value?

2019-04-11

When shopping for any vehicle, it’s vital to consider resale value. This should be your single-most important buying criterion! The challenge, however, has always been to establish which vehicle fares best in this regard. Now, for the first time, the sports utility vehicles (SUVs) with the best resale value can be revealed!

Which cars have the best resale value?

Which cars have the best resale value?

2019-04-04

Do you want to buy a car with an outstanding resale value? You will be very surprised to see which cars perform best in the resale stakes in South Africa … The best car in the country – in terms of resale value – is the Renault Kwid! This has been revealed by Darryl Jacobson, managing director of True Price, who adds that many of the cars with terrific resale values may well come as a surprise.

Want a bargain buy? These 10 vehicles are your best bet

Want a bargain buy? These 10 vehicles are your best bet

2019-03-20

South Africans – contending with load shedding, rising fuel prices, higher inflation and a looming downgrade in the country's credit rating – are taking strain like never before. But Darryl Jacobson, managing director of True Price, says that there is a glimmer of hope on the horizon: it’s a buyer’s market for those South Africans who are shopping for cars and there are some superb deals up for grabs.