Resale Value of ICE Vehicles Remains Strong, But Younger Buyers Prioritize Cost and Sustainability
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Despite the growing popularity of electric vehicles (EVs), the resale value of internal combustion engine (ICE) vehicles remains robust, notably in markets like Indonesia. However, a shift in priorities among younger consumers is impacting purchasing decisions, with operational costs and environmental efficiency becoming more important than resale value.
Strong Resale Values for ICE Vehicles
The stability of ICE vehicle resale values is supported by well-established secondary markets and the enduring reputation of Japanese automotive brands. According to Yannes, speaking to detikOto on August 30, 2025, ICE vehicles can retain 70-80 percent of their initial value after three years of ownership.
Factors Supporting High Resale Values
- Established Market: A mature secondary market provides consistent demand for used ICE vehicles.
- Brand Reputation: Brands like daihatsu, suzuki, toyota, and Honda are known for reliability and durability, maintaining their value over time.
- Continued Demand: While EV adoption is increasing, a notable portion of the market still prefers or requires ICE vehicles.
Shifting Consumer priorities
while resale value has traditionally been a key consideration for car buyers, younger consumers are increasingly focused on the total cost of ownership and the environmental impact of their vehicles. This means factors like fuel efficiency, maintenance costs, and emissions are playing a larger role in their purchasing decisions.
The Rise of Operational Cost and Environmental Concerns
Younger buyers are more likely to prioritize:
- Lower Running Costs: EVs and fuel-efficient ICE vehicles offer lower fuel and maintenance expenses.
- environmental Impact: Concerns about climate change and air pollution are driving demand for more enduring transportation options.
- Technological Features: Modern vehicles with advanced safety and infotainment systems are highly desirable.
Key Takeaways
- ICE vehicles continue to hold their value well, especially those from established Japanese brands.
- Younger car buyers are shifting their focus from resale value to operational costs and environmental sustainability.
- The automotive market is evolving, with both ICE and EV vehicles catering to different consumer priorities.
The automotive landscape is undergoing a significant transformation. While the strong resale values of ICE vehicles ensure their continued presence on the market, the evolving preferences of younger consumers signal a growing demand for more sustainable and cost-effective transportation solutions. The future will likely see a coexistence of both technologies, with manufacturers adapting to meet the diverse needs of a changing market.