Ordinarily, new models of cars are more expensive than the already used ones. But certain factors are now making the second-hand one so expensive even more than the newer models.
The demand for Toyota cars has increased with a low supply in the manufacturing industry.
It gives more value to the used car market and makes second-hand cars expensive. Let’s dig into this further.
The reliability of a Toyota vehicle is top-notch, making the used brands so expensive. The increased rate of cars has led to a shortage of chips, reducing productivity. Hence spiking up the cost of used models. Toyota Tacoma is a case study because of the increased price of the old model over the newer ones.
Why Are Second-hand Toyotas so Expensive?
The law of demand and supply comes to play with why second-hand Toyotas are so costly. Second-hands are so expensive because the production of new models has gone down.
People no longer have the patience of waiting for a new Toyota auto. Therefore, the demand for second-hand is rising, making them expensive.
The increased demand for second-hand Toyota cars has led to increased purchasing prices. Not only that but the quality service associated with second-hand Toyota vehicles.
The cost of a used Toyota is exceptionally increased in the used cars trade due to its scarcity. Ordinarily, the prices of new cars should surpass that of old ones.
There is a twist in this regard because of the break in the manufacturing chain.
The covid 19 pandemic plays a part in the increased demand for second-hand cars and has led to increased used cars sales.
Toyota has a chain with other companies to get the raw materials for production. So the curfew imposed on movement broke the supply chain leaving the company handicapped.
This situation made the used cars market lucrative and so expensive.
Second-hand car dealers have taken advantage of this defect to sell pre-owned for buyers.
It has been a smooth business for them in the used car market, especially with the high demand for the product.
And the buyers seem to be comfortable with the high prices of the second-hand Toyotas.
We might still have to wait for the manufacturers of new Toyota cars for some months and maybe a year. They need time to recover and get fully back to production.
Also, the issue of scarce raw materials, especially chips, needs to be resolved.
Why is Toyota’s Resale so High?
There are four (4) reasons why Toyota’s resale value is so high, these include;
- Durable engines
- Dependability and availability of parts
- Lucrative first price and
- Long ownership period
Take a closer look at how these reasons play a part in the price hike for used Toyota.
#1. Durable Engines
Toyota is a brand of car that focuses on its engine’s strength and long-term service. Brands like BMW, Benz, Lamborghini, e.t.c have strong engines.
However, they can not last for long as they can spoil easily. The difference between Toyota and these other classical brands is that they focus on the engine power relative to its speed.
On the other hand, Toyota is more concerned about the longevity of the engine.
That is why the resale value of Toyota is very high even in the used car market compared to other brands of cars.
#2. Dependability and Availability of Parts
No matter the terrain you want to use your auto, Toyota is always fit for the task, making it dependable.
Toyota 4runners, Rav4s, Highlanders, e.t.c. are good in rocky landscapes. It offers good performance in all aspects, thereby increasing the resale value.
To top it all, parts of Toyota are easy to find, making them highly demanded in the automobile market.
#3. Lucrative First-Price
Toyota has a standard price that does not depreciate quickly. The initial cost is structured so that the value still stands in the used car market after some years.
When Toyota makes new vehicles, it only adds minor improvements, retaining the already used cars’ sales value.
So the difference in the resale is not much, and it sometimes depends on certain conditions.
#4. Long ownership periods
Not all car brands can be owned for an extended period and still retain their quality. Toyota is notable for its long service, which skyrockets the resale of used car prices.
Old Toyotas are made to serve on a long-term basis. It increases the demand and makes Toyota cars expensive.
Is a Used Toyota a Good Buy?
Yes, a used Toyota is a good buy. A used Toyota is reliable, has a good resale value, and offers an extended warranty.
A used Toyota tends to be as strong as a newly purchased one because it is already tested and certified to be fit even after five (5) years. Unlike other cars, Toyota offers the best deal, especially second-hand use.
A used Toyota is a good buy because of its:
- Good resale value
- Extended warranty
When it comes to the reliability of auto, Toyota ranks among the top brands of cars. A 2nd hand Toyota Tacoma 2016 model is rated 5 of 5 stars in dependability.
This rating is higher compared to newer autos. Thus making the 2nd hand Toyota worth the buy.
#2. Good Resale Value
Cars seem to lose value after some years on display in the market. It is an entirely different story for a Toyota whose resale value sometimes goes up in the 2nd hand car market.
Toyota is a good choice if you are the kind of person that does not use a car for long. Even if Toyota’s value decreases, it will still be within a suitable range when weighed with the service offered.
#3. Extended warranty
One crucial edge makes Toyota cars more expensive than other car brands. You can extend the warranty of your vehicle once the factory warranty expires.
With this, the second buyer can continue to enjoy the privileges enjoyed by the original buyer.
The best part of an extended warranty is the extra packages it offers that are not part of the factory warranty. It is an advantage to the used car market of Toyota and spikes up used cars sales.
Toyota has been a top automobile brand because of its exceptional services. However, the covid 19 pandemic broke the bond between the industry and the supplier of raw materials.
This situation affects the production of new cars, making Toyota cars’ used car prices expensive. Aside from that, used Toyota cars are reliable and offer exceptional services.