It’s no secret that some vehicles hold their value better than others. Trucks tend to have a high resale value, and some brands have proven to hold their resale value extremely well. If you are planning to buy a car soon and are wondering which vehicles best hold their value, we have a few suggestions.

Depreciation and value of your vehicle

The value of your used vehicle is highly dependent on depreciation and procurement. Depreciation is the loss in value over time, influenced by things like mileage, age, and desirability. Supply and demand matter too. When there is more of the same model available on dealer lots, your vehicle may have a lower actual cash value. The time of year also counts for the value. For example, trucks and SUVs are more in demand during the winter months in some areas of the United States

On average, a new vehicle only holds about 30-40% of its original value after five years. Some hold more value for longer, retaining around 50-60% in five years. For example, the 2020 Toyota Tacoma is expected to hold 61% of its value after five years, according to Kelley Blue Book, a trusted vehicle review website.

Having a car that retains its value makes it easier for you if you need to sell it later. If you are the type of person who enjoys improving your vehicle frequently, then investing in brands / models that have value is a good idea.

Which brands and which models have their value?

In general, trucks and SUVs tend to hold their value better than midsize / compact cars. Some brands that have a high resale value typically include:

  • Subaru
  • Toyota
  • Honda
  • Jeep
  • Chevrolet

If you’re looking to buy a vehicle that can withstand the test of time and depreciation, here are some value winners for 2020 models according to Kelley Blue Book:

  • 2020 Subaru Crosstrek
  • 2020 Jeep Wrangler 4-Door
  • Subaru Impreza 2020
  • Toyota Avalon 2020
  • Toyota Prius Prime 2020
  • 2020 Chevrolet Silverado HD

If you’re not interested in buying a newer model, here are a few 2015 models that have held up well to depreciation according to Kelley Blue Book:

  • Honda Fit 2015
  • 2015 Subaru Impreza
  • 2015 Subaru Legacy
  • Jeep Wrangler 2015
  • 2015 Toyota Camry Hybrid
  • 2015 Toyota Tacoma

Do you see the trend of manufacturers and vehicles with some of the best resale values? The biggest downside to investing in a car that retains its value is that you might end up paying a bit more.

Choose a vehicle with high added value

“You get what you pay for” can ring true for vehicle financing. If you want a car that holds value over time, you may need to fork out a bit more money and go for a higher monthly payment. On top of that, you may need to do some legwork and research to find a good price for the vehicle you want. But in the long run, a reliable car can be worth the work.

If your credit is far from perfect, financing a car that is resistant to depreciation is also great for you. With a lower credit score, you may be given an above average interest rate, which can increase your loan balance. By buying a car that retains its value, it can prevent you from falling into negative equity that is, when you owe more on the vehicle than it is worth. The more equity your car has, the more it can help you when it comes to trading it in for something else.

Start shopping for your next loan!

Having a dealership that can work with your credit score makes it easier to find a vehicle that is also right for your budget. Not all dealerships can help with credit issues, but we know where they are here at Auto Express Credit. We have developed a nationwide network of dealerships that help loan borrowers find the financing they need. To be matched with a dealer in your area who can help you with unique credit situations, complete our free form auto loan application form.


Source link