Top SUVs That Hold Resale Value Best: Tata Punch, Hyundai Venue, Creta And More

A lot of factors come into effect when buying a new or used car. The important ones are body type, engine type, fuel type, transmission type and running and maintenance costs. Used car buyers prioritise factors such as the number of owners and vehicle mileage over those listed above. Resale value and rate of depreciation are two very important factors in the case of new and used cars. 

When it comes to body type, SUVs are trending and more aspirational than the two other mainstream body types, hatchbacks and sedans. Typically, used SUVs offer high resale value and depreciate at rates comparable to hatchbacks. 

What is Depreciation and Resale Value?

Depreciation is the percentage by which a car loses its monetary value over a period of time. Resale value is the monetary value a car can be sold at, after a specific time period. For example, the rate of depreciation of a used Hyundai i20 after three years of ownership, is 37% and its resale value is around ₹ 4.45 lakh. 

Most used cars suffer the steepest depreciation in their first three years and stabilise over the following years. However, most used SUVs retain their highest value during the first three years of ownership. Let's look at SUVs with the highest resale values. For clarity, we have segregated SUVs based on  used car prices, offering the best option at four different budgets - ₹ 5 lakh, ₹ 8 lakh, ₹ 12 lakh and ₹ 15 lakh.

Most Valuable SUVs Based on Resale Value and Depreciation

With data collected from CARS24 sales data and CARS24 Gears of Growth report, we can infer used SUVs with the highest resale value and slowest rate of depreciation. Here’s what we found out:

Best Used SUVs under ₹ 5 lakh: Tata Punch

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The micro SUV segment in India is relatively new, with the Tata Punch and Hyundai Exter currently being the most prominent players.While it is too early to tell, initial reports suggest the Punch holds its value better than the Exter. Its comparatively butch SUV styling and cabin space make the Punch a popular SUV.

A second hand Tata Punch loses 25.55% of its value in the first year which is better than most hatchbacks! The micro SUV holds its value well in the second, third and even fourth year. The Punch is quite a popular SUV with a lot of demand, a demand which extends to the used car market as well. 

Note: The used car prices shown are calculated for vehicles MY 2014 and above and with mileage under 1 lakh kilometres. 

Since the Tata Punch was launched in 2021, it is a newer model and hence has a higher resale value. That said, the Punch is popular for other reasons such as a butch SUV body style, high ground clearance, spacious cabin and high safety ratings. 

There are a lot of factors that explain the Tata Punch’s popularity. Here are the important ones:

• Affordability. A new Punch has a low asking price. 
• Premium SUV styling in a compact package.
• 5 star Global NCAP safety rating. 
• High ground clearance.
• Spacious cabin and large boot space.
• Available in petrol, CNG and even EV engine options. 
• Choice of manual and automatic transmissions.

Top Used SUVs under ₹ 8 lakh: Hyundai Venue

The compact SUV segment is currently the most popular SUV segment in India. The top three most popular SUVs in this segment are closely matched. In fact, the Hyundai Venue and EcoSport exhibit identical depreciation rates in the first two years while the Sonet, in fact, has even lower depreciation than the two in the first year but loses its value more in the next 5 years.

A used Hyundai Venue loses 26% of its value in the first year which is comparable to most hatchbacks. Thereon, it steadily loses its value in the next 4 years, showing a depreciation rate of 44.82% which is impressive. While the Hyundai brand helps the Venue, its resale value is owing to its reliability, build quality and competitive new and used car pricing. 

Note: The used car prices shown are calculated for vehicles MY 2014 and above and with mileage under 1 lakh kilometres. 

The Hyundai Venue has earned a reputation for its reliability, build quality and smooth and efficient petrol and diesel engine options. Also Hyundai’s reputation for building highly reliable and premium cars helps the Venue’s cause. 

There are many reasons for the Hyundai Venue’s high resale value. Here are the important ones:

• Up-market exterior and exterior design.
• Its compact size is just right, large enough for comfort and small enough for convenience. 
• Spacious cabin with good boot space. 
• It is loaded with new-age features and tech. 
• Good build quality and fit and finish levels. 
• The Cabin ages well with no rattles or squeaks. 
• Reliability backed by an extensive service network. 
• Choice of refined petrol and diesel engines. 

Value-for-Money Mid-Size Used SUVs Under ₹12 Lakh: Hyundai Creta

Korean SUVs dominate the mid-size SUV segment in India with Tata Nexon coming a distinct third. The Kia Seltos offers a better resale value than the Hyundai Creta and Tata Nexon in the first, second, third and fifth year. The Hyundai Creta and Tata Nexon exhibit similar rates of depreciation, indicating the Indian SUV is more popular than you think it is. 

The Kia Seltos loses 25.91% of its value in the first year and shows an impressively slow rate of depreciation till the fifth year where it loses 44.92% of its value. Interestingly, a used Seltos has a higher rate of depreciation than the Creta and Nexon in the fourth year of ownership.    

The Hyundai Creta enjoys immense popularity, with three generations to choose from. The SUV is popular for its highly frugal diesel engines, reliability and overall space and build quality. The Creta’s reputation as an all rounder leads to long waiting periods and consequently, high demand in the used car market. 

Many reasons define the Hyundai Creta’s popularity. Here are some notable ones:

• Premium and sporty design.
• Luxurious and spacious cabin. 
• Ample boot space. 
• Comes packed with features and tech. 
• Has reliable and powerful petrol and diesel engines. 
• Large choice of petrol and automatic transmissions. 
• Is a practical and value for money SUV. 
• Reliability is backed by Hyundai’s vast service network. 

Mahindra XUV700: The Best Premium Used SUV Under ₹15 Lakh

One of the reasons for the Mahindra XUV700’s popularity is that it is a newer SUV. Even if we consider the depreciation data for the last 3 years, the XUV700 consistently outperforms the Safari and Harrier. The XUV700 is based on a modern platform, while the Tata uses an ageing OmegaArc platform for the Harrier and Safari, resulting in lack of modern features. However, the Safari’s lower depreciation compared to the Harrier points to the segment buyer’s preference for three-row-SUVs and brand value. For example, the Safari badge has more weight than the Harrier nameplate owing to its lineage. 

The Mahindra XUV700 loses 26% of its value in the first year, which is comparable to hatchbacks. It also holds its value better in the second and third year. The XUV700 is popular for its styling, luxurious cabin and space age features. The 3 row SUV has a long waiting list which makes a used XUV700 highly sought after as well. 

The Mahindra XUV700 has a higher average resale value for SUVs above ₹ 15 lakh. However, there are a lot of second hand XUV700 examples available from ₹ 9.9 lakh onwards. The XUV’s popularity means there is a long waiting list for the SUV, making it highly sought after in the used car market as well. 

Besides the long wait list, here are some important reasons behind the Mahindra XUV700’s high resale value:

• It is one of the best looking SUVs in India. 
• Its imposing dimensions give it a commanding presence. 
• The large cabin has lots of passenger and boot space. 
• It has a space age and luxurious cabin. 
• It has a large number of comfort, tech and safety features. 
• It gets powerful petrol and diesel engine options. 
• It has impressive ride and handling dynamics. 
• Competitive new car prices make it a fantastic value for money proposition.

Conclusion

Under ₹ 5 lakh, the Tata Punch offers the best value. For that price, you get newer, post 2020 models of the Punch besides which the micro SUV offers the best resale value thanks to its butch SUV looks, cabin space and high ground clearance. 

Among compact SUVs under ₹ 8 lakh, the Hyundai Venue offers the best depreciation compared to other options like the Kia Sonet and Ford EcoSport. Besides being a newer model, the Venue offers good resale value thanks to its attributes such as reliability, build quality and refined petrol and diesel engine options. 

For a budget of under ₹ 12 lakh, you can opt for mid-size SUVs. The Hyundai Creta is your best bet as it comes across as a value for money SUV thanks to its premium looks, feature packed cabin, ample space and frugal petrol and diesel engine. These attributes make it highly sought after in the new and used car segment which affords it a high resale value. 

With a budget above ₹ 15 lakh, you can go for three-row-SUVs like the Mahindra XUV700. This SUV is quite popular leading to high wait times and consequently, it commands a high resale value in the used car space. The XUV700 is one of the best looking SUVs in India and has a feature packed and luxurious cabin besides offering a choice of powerful petrol and diesel engines. 

While many factors affect resale value, and used SUV buyers prioritise styling, space and features over low running and maintenance costs, which ultimately define its rate of depreciation.