When leasing a light vehicle, people first consider the amount of the monthly payment and related expenses. But, in the words of the manager of Citadele Leasing, when choosing a car it is also to pay attention to which models remain more
valuable with the current of time. :format(webp)/nginx/o/2020/12/21/13541972t1he96f.jpg)
Skoda Octavia is on the list of the most popular new models of cars for 2024 year. Illustrative Photo: Ingars Tenis, TVNET
When leasing a light car, people first consider the size of the monthly payment and related costs. But, in the words of the leader of Citadele Leasing, when choosing a car
it is also to attend to which models are best at retaining their value with the current of time.
When determining the residual value of the vehicle leasing companies consider different indicators, such as the predicted mileage, the condition and age of the vehicle, and the market situation.
“Within the first year after purchase, new vehicles usually lose about 20% of their first primary value, and after five years their value is in average 40% of the primary price”, said the head of the Estonian branch Citadele Leasing Rainer Moppel. Some some brands of cars keep the value better than others.
Based on historical prices for used cars Citadele Leasing is the Citadele Leasing company .has developed an algorithmic model to predict the residual value of vehicles. This model analyzes the technical characteristics and the degree of wear of used vehicles and provides a prediction of the residual value for each model. “The data in the database is updated every month, and at the date the forecast model contains over 11 million units of data. “This amount of information allows to make substantiated conclusions and forecasts,” Moppel said.
According to his said, Citadele Leasing is using this unique for all the Baltic region model, to more accurately assess the value of cars in its portfolio and to possibly offer customers cars with a higher residual value. “This helps make monthly payments more affordable,” Moppel added.
According to Citadele Leasing data, the best to keep the value of these hybrid crossovers, like Toyota RAV4, Toyota CH-R, Toyota Corolla Cross, Kia Sportage, Volkswagen Tiguan and Škoda Kodiaq. According to Moppel, with an average annual mileage of 20 20 000 kilometers in five years these vehicles retain 45-50% of their residual value.
“When purchasing real estate often the value of its return on investment is evaluated, while when purchasing a car people are more attentive to the related expenses, which is supposedly also an important argument. But when choosing a car, in addition to the costs of financing and the costs of insurance, the depreciation of the brand and how it retains value with the current of time. This will allow them to make an informed decision and if needed to make it easier and more profitable to sell the car, ” statedhead of Citadele Leasing.
Although, according to AMTEL statistics for 2024 year, sales of diesel vehicles in last year increased more than total by 55.9% – their share of total volume of sales is only 17%. At the same time the share ofhybridvehiclesintotalvolumeofsalesisalready50%.
“Thisshowsthatcar buyersprefermodels that aresimultaneouslyeconomical,environmentally friendlyandgoodattheirprice,” saidMoppel.- Thesignificantgrowthinsalesofdieselcarsisprobablyrelatedtotheintroductionoftheavtonalog,whichwillbehigherformodelswithdieselenginesthanwithhybrids.”
According toAMTELdata for2024year, themostpopularnewmodelswereSkodaOctavia,SkodaKodiaqandToyotaCorolla.
According toSkodaKodiaqandToyotaCorolla.
