15 Vehicles With Best and Worst Resale Value

When purchasing a car, you know you are sinking a ton of money into a depreciating asset. This means that the car is going to be worth less tomorrow than what it was worth today. We’re smart and obviously want to waste as little money as we can as consumers, especially if it is as a percentage of a massive purchase like a car. 

The best way to maximize your resale value is to avoid buying cars that are within their first 5 years of life, because the depreciation is steeper here. Buy as old as you feel comfortable, to save your hard earned money. The older the better, in my opinion. Just make sure the car checks out mechanically and is a safe ride.

The other best way to ensure resale value is to buy a brand that holds its value well. Brands like Jeep, Subaru, Porsche, Toyota, Lexus and Honda all tend to have a higher resale value than their competitors. These vehicles hold their value better than most, but that’s not to say that they don’t depreciate as well. 

In contrast, brands like Volvo, Chrysler , Land Rover, and Acura tend to have a really low resale value making them money pits for car owners who frequently buy and sell their cars.  Some of these vehicles will depreciate in value up to 61% in the first five years. 

A Brief Lesson On Resale Value

Whether or not you are leasing, buying or financing your vehicle you want to know what the resale value is going to be and make a smart decision accordingly. Even when you are leasing a vehicle you end up paying for the depreciation of the car. In fact, when you lease a vehicle, a large portion of what you are paying for is the depreciation because you have the vehicle in its first few years of life. Keep in mind that this is where the depreciation is the steepest.

You’ll want to know the resale value on cars you are deciding on regardless of if you intend to:

• Lease
• Purchase outright
• Finance through

Resale value on a vehicle is simply how much it will be worth when you sell it. The resale value of a vehicle is determined by supply and demand, not how much you paid for the vehicle new. How much someone is willing to pay for your car in 5 or 10 years can really impact how much money you lose on your car purchase.

How To Get The Ultimate Resale Value For Your Car

If you want to lessen the depreciation slope, meaning lose as little money on your investment in a car as possible, buy used and buy older. Vehicles are getting well over 150,000 miles these days. Brands like Toyota, Honda and Lexus will run forever. The best way to lose the least amount of money over the years on a car is to buy a car that has almost completely depreciated anyways. 

I bought my Honda SUV with over 180,000 miles on it. It cost me less than $4,000 dollars to purchase the car. I’ve put about 20,000 miles on it and it is still worth around $3,5000 more than two years later. I’ve put a standard maintenance fund to use to keep the car running and had to make a few repairs that cost me around $500. I don’t have a car payment every month and when the time comes that my car actually breaks, I’m not that worried about it because I didn’t sink my life savings into a car!

The bottom line: buy used and maintain your resale  value

Factors That Effect Resale Value

However, basic economic principles play a huge factor in terms of resale value. If there are more cars on the market say of the body type minivan, and not a lot of people who are in the market for one, then you can expect most minivans to command a lower price. It is basic supply and demand. The more sought after something is the more people are willing to pay for that something.

• Supply and demand
• In some cases special edition vehicles will command a higher resale value for the right buyer

Cars with the Best Resale Value

The vehicles listed in the chart below are the cars that hold their value the best over a 5 year period. The Toyota Tacoma will be the top car on this list and is a great example of how much money you will end up retaining by making a smart purchase. If you go with the base model of the Tacoma truck, you would be spending $26,400. The car would still be worth $20391 in 5 years time.  

By contrast A Kia Cadenza has a starting price of $37,850. After 5 years, according to this data, the vehicle will be worth $16,396 in 5 years! Just 43% of what it was valued at 5 years prior. This really goes to show you that considering resale value when buying a car will make a big difference for your future finances.   

The 15 Vehicles With The Worst Resale Value

These statistics were valued from a span of data taken over a 5 year period. A Kia Cadenza has a starting price of $37,850. After 5 years, according to this data, the vehicle will be worth $16,396 in 5 years! Just 43% of what it was valued at 5 years prior. This really goes to show you that considering resale value when buying a car will make a big difference for your future finances.   Here are the vehicles with the worst resale value. Some of these vehicles are hybrids or electric cars which are incredibly expensive to fix or replace crucial parts like the battery. Others are just vehicles that people don’t tend to want to buy used.

Brands Ranked Resale Value

Buying a brand that will hold its value is important too. Brands like Toyota, Honda, and Subaru produce cars with a cult like following. That’s why a Honda SUV from 2004 with close to 2,000 miles on it is still worth almost $4,000. These brands tend to be the most reliable which is why they hold their value so well.

Luxury Cars with the Best Resale Value

If you are in the market for a luxury car, you’re going to be spending more, which makes it even more crucial to make a smart decision when it comes to resale value. Brands like Porsche, Lexus, Audi and Cadillac tend to have the best resale value, but some models are better than others! Check out this list of luxury vehicles to see what holds its value and what won’t.

Luxury Brands with the Best Resale Value

Buying a brand with high resale value is important when protecting how much liability you put on yourself when purchasing a car. Remember that cars are not assets! They are depreciating assets that do no hold their value. Making a smart decision can help mitigate the money you lose when you buy a vehicle.

All data was provided by our friends at CarEdge.com

Buying Used To Keep Depreciation Low? Make Sure You Get A Warranty To Help With Your Repairs

Car repairs can be absurdly expensive, and you can expect those unexpected repairs before too long no matter what vehicle you drive. 

If you have to replace the transmission in your car  it could cost you more than $5,000 

Depending on your vehicle it could cost you up to $10,000 to replace the engine block.

If that seems absurd to you, luckily you aren’t alone.

A vehicle service contract from Protect My Car can help cover the cost of these excessive repairs. In fact, you could pay as little as $100 dollars for that $5,000 transmission replacement.

Yes, you heard that right.

For less that the cost of a cup of coffee each day, you can get coverage for:

• Steering
• Suspension
• Engine
• Transmission
• A/C and Heating
• Navigation and Electronics
• …and so much more.

When you walk into the repair shop with a coverage plan from PMC, you can rest assured that you will never pay for these repairs listed here. You pay a $100 deductible, just like insurance and we pay the rest.

Does that sound like a fair deal to you?

If it does, just fill out the form below for a free quote, and see how great it can be to never have to pay for car repairs ever again.