Gasoline car beats hybrids in maintaining value

Which car preserved its value the best this year? In 2023, we went back to asking the classic question. Since the outbreak of the coronavirus and the chip crisis, the used car market has experienced an exceptional situation: suddenly there were several sought-after models whose value rose instead of dropping as we were accustomed to, due to a shortage of new cars from the model, or manufacturer price increases.

"In 2023, the market returned to normal, there are no cars that ended the year at a higher price than they were at the beginning, and only a few models lost less than 10%," says Mei-ron Levi, Deputy CEO of the Levi Yitzhak group, which lost its founder this year, Levi Yitzhak.

In an examination of 50 models from 2021 in all major market segments, electric cars are starting to shine, with the Geely Geometry C which only lost 6% of its value between January and December, and the Hyundai Ioniq 5 which only lost 5%. This was also the rate of value loss for the hybrid Ioniq. The Kia Picanto, which consistently appears on the list of cars that maintain value, only lost 4%. The Toyota Corolla hybrid only lost 3%.

However, the surprise was that the car that depreciated the least in value was actually the family Benzine Skoda Octavia, which lost only 2% of its value. The Octavia is a successful family car, and it is likely that a shortage of new cars at the importer contributed to increased demand for used cars.

"In the luxury market, prices have returned to familiar levels, with most models losing between 10% and 20% in one year," says Levi. "Even in recent months, we see a pause, people feel that it is not the time to replace a luxury car. I also hear from importers about people who ordered, paid, and asked to leave the car in storage temporarily until the national situation improves."

Tal Bar Lev, CEO of Shlomo Car Sales, the company that sells the most used cars in the market, says, "Until the war, it was an excellent year in the second-hand market. There was no dramatic drop in prices. The market was balanced. And there were models that held their value nicely. After the war, the market stopped. In the first two weeks, we still sold cars that were ordered pre-sale, and then we felt the decline. The month ended with a drop of 30-40%. After that, we saw a recovery: in November, the decline was only 20%, and by December, we were already following the work plan set before the war."

Guy Barbon, CEO of Autodeal, a company specializing in privately owned second-hand cars, says, "In 2023, we encountered demands for mini and super mini cars as a solution for an additional car, for electric vehicles of all types of propulsion, and for mid-range budget cars in the range of 40 to NIS 100,000 in all market segments. Alongside this, the luxury market has experienced a decrease in demands after a period of relative prosperity, with signs of recovery in early 2024 but has not yet returned to its normal levels."

How will the war affect the market in 2024?

Tal Bar-Lev: "The market will strengthen as time goes by. There are people who understand that there is a long war and they need cars, off-road vehicles, military personnel serving on duty, and those whose cars were damaged in the war. We are starting to see supply difficulties with importers due to the cancellation of shipping lines from the East for car transport, in light of the Khouti attacks. It will start to resemble the scenes from two years ago, where in the absence of new car stock, people will purchase a used car of the same model."

Guy Barbon: "The war will reinforce the trend that began last year, of a challenging economic environment with rising interest rates in particular and consumer sentiment affected by the situation. In the past couple of months, we have identified a trend of increased searches for used cars, a trend that in our best estimation will continue to strengthen in the coming year, especially given the fact that in such an economic environment, customers are turning more to purchasing a second-hand car that requires less financial effort than buying a new car."

Mei-ron Levi: "If there is a full-scale war in the north, the economic crisis will worsen, and people who were in a different situation would have bought a new car, buy used cars, which will raise prices. Even the prices of news cars will be affected: people enter showrooms, see that popular models like Corolla and Elantra cost almost NIS 170,000, and go look for alternatives in the field."

Model | December Price | 23' Drop RateSmall Cars:Chevrolet Spark | 68,000 | 16%-Toyota Yaris Hybrid | 76,000 | 15%-Seat Ibiza | 79,000 | 12%-Mazda 2 | 82,000 | 10%-Honda Jazz | 100,000 | 9%-Hyundai i10 Supreme | 66,000 | 7%-Kia Picanto | 69,000 | 4%-

Family Cars:Honda Civic | 101,000 | 15%-Volkswagen Golf | 120,000 | 6%-Hyundai Ioniq Hybrid | 118,000 | 5%-Toyota Corolla Hybrid | 124,000 | 3%-Skoda Octavia 1.5 | 125,000 | 2%-

Crossovers:Hyundai Tucson 1.6 Turbo | 135,000 | 15%-Hyundai Kona Petrol | 94,000 | 15%-Hyundai Kona Hybrid | 107,000 | 12%-Mazda CX5 | around 130,000 | 12%-Subaru Crosstrek 2 liter | 120,000 | 11%-Peugeot 3008 1.6 Turbo | 126,000 | 11%-Kia Sportage 1.6 Turbo | 118,000 | 11%-Nissan Qashqai | 136,000 | 10%-Seat Ateca | 115,000 | 9%-Kia Niro Hybrid | 118,000 | 9%-

7-Seater SUVsMitsubishi Outlander | 136,000 | 16%-Nissan X-Trail Diesel | 142,000 | 13%-Chevrolet Traverse | 222,000 | 13%-Skoda Kodiaq 1.5 | 155,000 | 11%-Nissan X-Trail Petrol | 141,000 | 8%-

Off-Road Vehicles

Ford Explorer | 241,000 | 21% -SsangYong Rexton | 156,000 | 17% -Toyota Land Cruiser | 231,000 | 16% - 

Electric CarsTesla Model 3 Standard | 141,000 | 28% -Audi E-Tron | 376,000 | 17% -Hyundai Kona EV | Approximately 110,000 | 12% -MG ZS EV | Approximately 114,000 | 10% -BMW iX3 | Approximately 327,000 | 10% -Mercedes EQC | Approximately 442,000 | 10% -Fiat 500e | 112,000 | 9% -Geely Geometry C | Approximately 121,000 | 6% -Hyundai Ioniq Prestige | 165,000 | 5% - 

Luxury CarsPorsche Macan (Gasoline) | 324,000 | 22% - Mercedes GLA250 | Approximately 242,000 | 21% -Volvo XC40 | Approximately 184,000 | 19% -Cadillac XT4 | Approximately 181,000 | 18% -BMW X1 | Approximately 186,000 | 16% -Audi Q3 | Approximately 180,000 | 16% -Lexus UX250 Hybrid | 148,000 | 16% - 

All prices for 2021 models before discounts, according to Levi Yitzhak's price list.