This time around in our car depreciation profile series, we’re looking at the ever faithful and popular Toyota Corolla. In this article, we’ll be discussing some of the stand-out features of the latest-model Corolla, plus of course getting into how it stacks up against the industry average in terms of depreciation (ie. what it may be worth in future!).
What’s car depreciation again?
Car depreciation is the rate at which your car loses its value over time, presented as a percentage. As an example, you purchase a brand new car for $10,000 and after one year, its value is $8,000; the depreciation in this case would be 20%.
In this Canstar article, they state that on average, cars depreciate by 19% in their first year and around 15% per year in the following two years (though this rate may fluctuate depending on a couple of different factors). Hence the old analogy of losing value when you drive straight out of the showroom!
A little bit about the new Toyota Corolla
The Toyota brand is widely synonymous with reliability and longevity in their vehicle builds, and the Corolla is certainly no exception. Taking out Australia’s Best Small Car 2020 under $35,000, you can imagine the model is going from strength to strength, too.
Boasting outstandingly economical fuel consumption numbers (especially the hybrids), several driver assist features, 7 airbags, reversing camera, an 8” colour touchscreen display with voice recognition, Apple Carplay and Android Auto across all models, it’s obvious why this hot hatch has been such a huge seller in the market.
How the Toyota Corolla fares depreciation-wise
We've provided a few examples to help illustrate how the Toyota Corolla may depreciate over time. Remember a few important caveats; the condition with which you bought it, the price you paid for it, the options it has and how you drove it. All these factors will dictate the ultimate price you're able to achieve on sale.
And now, it’s the time you’ve all been waiting for; finding out how the Corolla compares to the industry average in terms of depreciation. In order to do this, we’ll use the base model 2-litre, 4-cylinder Ascent Sport with 6-speed manual and look it up over on the RedBook website.
… and here’s what we got.
So, using the new price of $23,895 against the estimated trade-in prices ($19,400 - $21,800) we get a depreciation rate between 9% - 19% for a Corolla after its first year of ownership. And let’s be honest, it’s a Corolla, so does its exceptionally low depreciation really surprise you?
Ready to pull the trigger on a new Corolla? Be sure to check out what our friends over at carconnect can do for you! They’ll source some of the hottest prices in Australia for you, and can even arrange to have your current car sold at a great price too.
Want to make financing your new Toyota Corolla a breeze? Call us today
Applying for and securing car finance doesn’t have to involve endless paperwork, hoop-jumping and general headaches. At Stratton Finance, we work incredibly hard on our end to ensure your experience from start to finish is nothing short of relaxed and stress-free. And backed by more than 20 years of experience in the industry, you can bet we’ll be able to find the perfect car finance package that aligns with your needs.
So use our handy online car finance quote tool now and discover how little you could be paying to get behind the wheel of a brand new Toyota Corolla - we’re sure you’ll be impressed with what you see! Then it’s simply a matter of applying online (it takes less than 5 minutes) and we’ll be in touch to get a couple more details from you.
If you’re interested in refinancing given today's record low interest rates, please feel free to call our friendly team on 1300 787 288 or send us an online enquiry.
Note: for the owners of business vehicles, a vehicle's depreciation may be deducted during tax time (be sure to consult with your accountant on this, though).