Your questions answered: Will petrol cars depreciate faster in the future?

There’s no reason to fear that the conventional petrol-engined car you buy today will depreciate faster than the same brand and specification of car you purchased three years ago.

RedBook has found that retained values of Toyota hybrids are now holding up at least as well as conventional Toyotas of comparable specification, but that wasn’t always the way.

What’s clear is that depreciation has not worsened for the conventional car as hybrids have improved.

That’s also likely to be the case with the alternative-energy vehicles – plug-in hybrids and battery-electric vehicles – reaching the market in growing numbers.

But until they achieve something like price parity with conventional cars, resale values for EVs and PHEVs will suffer.

With changes to the world of automotive, does that mean buyers should be concerned about purchasing conventional cars in the meantime? We don’t think so…

Question: I am worried about purchasing a petrol car and its value in the future, say in three more years. Would I be better purchasing with an agreed value after three years for peace of mind? – Craig A

Answer: The reality is that Australians will be driving combustion-engined vehicles for quite some time. Organic EV penetration is very low in Australia at less than two per cent of sales. It would take a significant push from government in the way of legislation and/or incentives for that to change in the next decade and, even if the financial impediments are removed, many Australians remain unconvinced by EVs, quoting range and recharge times as barriers to purchase, along with cost.

Redbook.com.au is suggesting that future values on diesels (non-SUV or ute) are starting to trend downwards but petrol hybrids are the reverse. EVs still do not have strong resale. Of course, all of this will change – but not overnight.

The sweet spot in the next decade or more could well be plug-in hybrids but, again, most currently have a real-world EV range of less than 30km. It’s not all doom and gloom as you’ll see a real acceleration of electrified hybrid plug-in models from many manufacturers plus a swag of new battery-electric EVs over the next two years or so. For the time being, though, conventional vehicles – on retained-value schemes or otherwise – will be the norm.

Question: l am looking at upgrading my 2015 Ford Territory Titanium to a 2018 Volkswagen Touareg to raise the tow capacity from 2700 to 3500kg. I am concerned about the diesel lag and long-term damage to the direct-injection system with Australia’s crappy diesel. – Shane

Answer: Actually, the standard of diesel fuel is far better than unleaded in Australia, with a far lower sulphur content. The Volkswagen Touareg definitely has the torque for the job and the engine has minimal turbo lag. If you’re towing a big load, especially over long distances, diesel is still the best choice.

Question: Recently l parked my Mitsubishi Triton for 14 days in a private long-term car park and prior to our arrival the company washed and prepared my vehicle for pick-up. The car was started and moved to the wash bay and then to a holding yard, but upon our arrival the vehicle failed to start. A motor mechanic was called and a diagnostic done, the result being key transponder failure. The spare key was tried with a similar result. The car was left overnight with the mechanic and in the morning it started. We were notified that everything was okay but on arrival to collect my vehicle it failed again. Have you heard of or experienced anything similar? The Triton has 103,500km, is approximately three years old, and the battery was replaced a few months ago. – Dennis W

Answer: The problem likely started with the replacement of the battery. From my experience and advice from my mechanic, it’s probably best to get a Mitsubishi dealership to disconnect the battery and reset the whole system. It might cost a little but should get to the heart of the problem.

Question: I have heard some comments about Toyota reliability. Is this reliability also inherent in Lexus cars? Also, we are in the market for a new car and our mechanic has suggested we avoid cars with CVT. Can you comment on this? – Jonathan M

Answer: Toyota has a near-bulletproof reputation for quality. Apart from recent complaints about misbehaving satellite navigation systems and dusting problems in some turbo-diesel models, that reputation is holding. The same applies to Lexus. On your transmission question, there is nothing inherently unreliable about CVTs, but a lot of people find they give slow response and generate a lot more noise than an old-school auto.

Question: I want to do some tag-along tours for gold prospecting in WA. I would like a four-cylinder four-wheel drive, because of fuel costs, that can handle miles of gravel road with extreme corrugations, tracks that may be muddy or have water across them, tracks that may have water washed-out sections of the road, tracks that may have sharp stones or sticks. I do not want to do extreme off-road four-wheel drive activities and I don’t care about luxury accessories like heated seats. – Sue L

Answer: A Subaru Forester should be fine for your needs and will be comfortable for long-distance driving to the goldfields. Forget all the stuff about LandCruisers and Patrols, because the reality of most country roads is that a Forester with appropriate tyres (more aggressive off-road-biased rubber) is all that you need. If you want something to compare, then look at the Suzuki Grand Vitara. It’s a bit more rugged in the styling and might be a little more capable off-road if things get really rough.

Question: My recently widowed daughter in her early 40s is looking at buying a Skoda Kamiq Limited Edition. Your opinion or any alternatives would be greatly appreciated. She has a six-year-old son and would keep the car probably 10 years. – Bert R

Answer: That’s a great choice of vehicle. Consider negotiating a service plan as part of the purchase cost. The Skoda Kamiq gets The Tick from me.

Question: Please let me know the smallest mobile home that exists. Ageing single pensioners like me need to drive – to visit siblings and children – but sleep in the mobile home. It will be my only car and must fit in a normal garage with a roller door. I currently drive a Suzuki Alto and its height is perfect, although slightly longer would be OK. Where can I see one, if it exists? – John F

Answer: The Suzuki Alto is absolutely tiny so any travelling van will be bigger, but the smallest – and a surprisingly good one – is the Volkswagen Caddy Camper. Not many are sold in Australia, and a new model is a little down the road, but I’m sure you can find some used ones.

Question: I need to buy a used car and know absolutely nothing about cars. I’m looking for a small SUV with seven seats. The back two seats will only be used occasionally to transport extra kids. I don’t need any fancy gadgets, just a good, reliable, safe car, and I want to spend around $20,000. – Malka K

Answer:

Question: My wife and I are in our early 60s and are looking for an SUV to buy. We live in Mildura (Vic) but won’t be doing long journeys – maybe four visits a year to Melbourne. We have about $25,000 to spend. She is thinking of a Ford Escape but is there anything else you could recommend? We don’t want a four-wheel drive. Is it best to buy a brand-new one or a used one? – Roy M

Answer: Near-new is usually best but your budget will limit your choice. Something like the Kia Sportage or Hyundai Tucson is highly recommended but you may get a better deal on the Escape as the Ford is a less popular (but still decent) choice.

Question: I have a 2016 Ford Territory and want to know when parts etc will become hard to find. I have emailed Ford but got no answers. I have no idea what else to get in place of the Territory; it is my third one and suits me perfectly. – Mary C

Answer: Parts for your Ford Territory should be no drama at least until 2026, as car-makers generally commit to supporting their models for 10 years. And it should be longer than that because, although production of the Territory ended in 2016, it was a popular model, shares many mechanical parts with the Falcon and sold in decent volume.

Got a question but don’t know where to find the information you need? Email us at editor@carsales.com.au

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