top of page

Citroën news

Citroën C3: better residual value than the Peugeot 208

The Citroën C3 seen from above in a red black roof

The residual value of a car is becoming increasingly important as the majority of purchases are now made through rental (LOA or LDD) and monthly rentals are based on the residual value of the car at the end of the rental. The latest barometer published contains surprises such as the Citroën C3, which has a better residual value than its cousin the Peugeot 208.

The third generation C3 is undoubtedly a jewel that has been a constant success throughout its career, unlike its two predecessors, whose sales declined sharply from the third year of its launch. This C3, which embodies Citroën's new values (comfort, popularity), has repeatedly topped the sales charts in various European countries, which, in addition to its qualities, have appreciated the personalisation options that allow customers to choose a C3 that meets their expectations.

It seems that this wide range of personalisation options is one of the main keys to the C3's ability to maintain a better residual value than its cousin the Peugeot 208, although the opposite might be expected given Peugeot's good image among the French and in the media. However, contrary to expectations, the 208 loses more value than the C3 as the latter retains 80.5% of its value after two years while its lion cousin retains 74.9%, a significant difference of 5 points which can be explained by the personalisation offer which mechanically reduces the offer as the combinations are multiple unlike the 208 where it is only monotonous.

The residual value of a car is an important issue because it allows manufacturers whose cars are the least discounted to charge more affordable rents compared to brands where the discount is significant. In fact, the rental price includes the difference between the sale price and the residual value of the car at the end of the rental period; the higher the residual value, the lower the rental price. This explains why some manufacturers, especially German ones, change the design very slightly between generations of cars so that the residual value does not drop significantly, thus guaranteeing the customer a good resale value.

In conclusion, the C3's personalisation offer does not do everything to maintain the value of the car.

It does, however, help to limit supply in relation to demand, which inevitably leads to higher prices. The third generation C3 therefore maintains a good resale value, better than its 208 cousin, another sign of the excellent generation which is preparing to pass on the baton in the coming months.

8 views0 comments


bottom of page