Financial experts believe that a car is one of the most expensive assets to own as its value depreciates over time. According to car experts, a new car loses up to 11% of its value immediately after driving it off the lot. This is bad news for car owners who may be looking to sell their cars.
While car depreciation is unavoidable, there are strategies available to help you control or manage the rate of depreciation. In fact, some car models manage depreciation so well that they are able to maintain a high car resale value.
Below, we’ll delve into the best resale value cars in America. We also look at how cars that keep their value manage to do so by exploring different strategies for controlling depreciation and preserving car resale value.
Factors That Affect Depreciation Rate
All cars are guaranteed to lose their value over time. Ramsey estimates that a new car can go down by as much as 60% in value in the first five years alone. However, not all vehicles will depreciate at the same rate.
Brands associated with some of the highest resale value cars have always had good reputations. Meanwhile, vehicles produced by less popular brands seemingly become considerably less valuable overnight. This may be due to demand, which plays a significant factor in most cars’ apparent loss in value.
Aside from the demand, the following factors also play a role in a car’s depreciation rate:
- Mileage: The higher the distance your car has traveled, the less it will be worth.
- Car Condition: Any damage to the car’s interior and exterior can make it appear unappealing to any prospective buyer. This is why damaged cars face a steeper loss in value than those still in pristine condition.
- Number of Previous Owners: The number of times a car is resold can significantly decrease its resale value in succeeding transactions.
- Car’s Service History: Your car’s service history serves as proof that the vehicle is well-maintained and offers reassurance for potential buyers. Having a full service history can raise the car resale value.
- Remaining Warranty: The amount of time left on the manufacturer’s warranty is directly proportional to its value, i.e., the more years left on the warranty, the more valuable it becomes for potential buyers.
- Popularity: More popular car models tend to depreciate more slowly than less popular ones.
- Available Features: More recent models are often perceived as more desirable because they possess better features and specifications than older ones, thus preserving their resale value.
- Size: Bigger cars typically cost more to run and maintain than smaller ones, which means they will also depreciate faster.
- Fuel Economy: Cars that consume less fuel per mile typically hold better resale values because they are more fuel-efficient and, thus, more affordable to run.
Depreciation Control Strategies To Maximize Car Resale Value
In economics, the depreciated cost is obtained when all the accumulated depreciation has been subtracted from the value of a fixed asset. In vehicle terms, your car’s resale value is obtained by subtracting depreciation from its purchase price. This means that maximizing car resale value can be achieved by controlling the rate of depreciation of your vehicle.
Here are a few ways to control your car’s rate of depreciation:
- Keep mileage down.
Tampering with the odometer is against the law, but there are many helpful ways to keep your mileage down. Some examples include planning your routes to avoid unnecessary travel and avoiding driving altogether by taking a walk or riding the bus once in a while.
- Subject your car to regular maintenance.
Regular upkeep helps keep your car remain in pristine condition. This includes checking coolant levels, inspecting air and tread levels in your tires, and changing oil and filters every three months or 10,000 miles, among many others. All of these will show up in your car’s service records, confirming your car’s excellent condition and giving buyers the confidence to purchase the vehicle.
- Avoid making modifications to your car.
Generally, installing aftermarket modifications to your car can significantly reduce its value. Aside from lowering your car’s value, the addition of custom spoilers, flared wheel arches, or wide wheels only appeals to a handful of potential buyers, thereby limiting the potential market.
- Choose popular colors.
The color of your car may be an excellent avenue for showcasing your creativity and individuality. However, choosing unusual colors and shades may not be the best decision, especially if you’re planning to sell your car. When selecting a color for your vehicle, you can preserve its resale value by selecting popular colors such as white, silver, and black.
- Find the right time to sell your car.
Timing plays a huge role in a car’s resale value. Many factors that impact a car’s value are time-constrained, such as market conditions and economic outlook. If you can’t find a decent value for your car today, maybe you can find a better time to sell it. It helps to do your research to find the perfect time.
- Consider the highest resale value cars when buying.
Some car makes and models fare better in the resale market than others because they do a better job of preserving their value. For instance, some trucks and SUVs are primarily considered the best resale value cars because they have the lowest depreciation rates after five years. Meanwhile, electric cars and luxury sedans lose their value more quickly. If you’re purchasing a vehicle with the intent of selling the car a few years down the road, do your research and consider cars that hold their value over time.
Best Resale Value Cars For 2022
As mentioned before, while all cars depreciate in value, some tend to decline more slowly than others. Some car manufacturers have even built a reputation for having excellent resale value on their vehicles, as evidenced by Kelley Blue Book’s Best Resale Value Awards for 2022.
This year, Ford tied Toyota with three entries each on the Top 10 Resale Values for Vehicles list. But Toyota wins again this year as the Best Resale Value: Brand for the sixth year in a row, with its sibling brand Lexus winning Best Resale Value: Luxury Brand for its third consecutive year.
The following are excellent examples of cars that keep their value according to KBB’s Top 10 List of Best Resale Value Vehicles:
- Toyota Tundra (70.2%)
- GMC Sierra (60.8%)
- Toyota Tacoma (60.6%)
- Ford Maverick (tie, 59.5%)
- Chevrolet Corvette (tie, 59.5%)
- Toyota 4Runner (58.6%)
- Tesla Model X (57.6%)
- Ford F-Series (57.3%)
- Ford Ranger (56.7%)
- Jeep Gladiator (56.1%)
Get The Most Value Out of Your Car
Your car’s depreciation significantly impacts its value when it’s time to sell your car. Some cars fare better than others in the resale market because they depreciate slower than others.
If there’s one key takeaway from all the information shared above, it’s that there are many other strategies that you can apply to help reduce your car’s depreciation rate and preserve its value, such as subjecting it to regular maintenance and avoiding extensive modifications.
Ultimately, when it’s time to sell your car, you need to find the right buyer to get the most value out of your transaction. At GivemetheVIN, we have built a reputation for seamless transactions with our customers simply because WE WANT TO BUY YOUR CAR. In fact, we help you get the most money by beating any offer you get at with a $100 guarantee if we don’t. Sell your car to the right buyer at GivemetheVIN. Contact us today!
