MG Cars Depreciate Fast

Resale Reality

Chinese automakers, while still relatively new to the U.S. market, have been increasing their presence globally. In places like Vietnam, models by MG, a Chinese brand under SAIC, are making waves for their affordability and technology. However, there’s a catch that potential buyers need to consider: depreciation.

Depreciation

The Downside

A recent study conducted in Vietnam analyzed the resale value of some popular MG models between 2022 and 2024. The MG HS SUV saw a significant decrease in value, shedding about 33% over two years. The MG 5 sedan lost around 27%, and the MG ZS SUV depreciated by approximately 24% during the same period. In stark contrast, Toyota vehicles fared much better, losing only 10-12% of their value. Other competitors like Hyundai and Kia also held up better than MG, with depreciation rates of 17% and 19%, respectively.

Driving Costs

This kind of depreciation might not seem alarming at first glance, but it’s a crucial factor when calculating the true cost of ownership. Chinese brands offer attractive initial prices and jam-packed with tech features. However, the accelerated depreciation coupled with potentially higher insurance premiums can eat away at these savings.

Driving Experience

Handling and Comfort

Driving an MG, such as the MG 5 or the MG HS, feels surprisingly good for vehicles in their class. They offer a smooth ride, and the interiors are well equipped and comfortable. Performance-wise, the MG models provide a balanced experience with decent power output that’s suitable for everyday driving. While they don’t compete directly with luxury brands, they offer a very competitive package compared to entry-level models from well-established brands.

Comparison

When compared to something like a Toyota Corolla or a Hyundai Elantra, the MG 5 holds its own in terms of features and interior quality. Yet, it’s in resale value and long-term dependability where traditional manufacturers shine brighter. The HS SUV’s ride quality feels akin to a Kia Sorento or a base model Honda CR-V, with good comfort and space, although the MG might not have the same brand legacy backing its reliability claims.

Market Impact

Shifting Trends

While the depreciation of these cars is a notable downside, it’s important to recognize that the landscape could shift. Innovative brands from China are proving to be formidable players in tech enhancements and eco-friendly solutions, influencing the market in ways that weren’t anticipated a few years back. With supply chain improvements and increasing market penetration, these brands might soon find their way into more garages across the globe.

For anyone considering a Chinese model, it’s key to weigh the initial savings against potential future value. As always in the automotive world, what you pay upfront isn’t always what you save in the long run.