Cars are huge investments, which is why trading in your old car for a new one can be a big help financially. But, how do you choose a vehicle you know will keep its value when it’s time to trade it in?
What increases the value?
Durability is a major factor that contributes to the overall value of your trade-in value. Cars that have the reputation for staying together and running longer will be sold for more money. If your vehicle is durable then a buyer of used cars will be more likely to invest in that vehicle and dealerships will be more willing to give you good value for your trade in.
Another factor that can affect the value of your vehicle is the make of the car. Some automobile companies are not as financially stable as others, which can decrease the value your car will hold. If a company is doing poorly then people will not want to buy their vehicles, and the less interest in a vehicle, the lower the trade-in value at a dealership.
What makes are best?
Since the make of your car is important, it is important to know which vehicle makes have the lowest value depreciation. You can check the rankings of resale value on Kelley Blue Book. Here are some of the highest ranking vehicles on the market today:
- Subaru: Vehicles from Subaru were determined by Kelley Blue Book to have the best resale value for a non-luxury brand in 2016. This is due to a combination of useful features such as 4-wheel drive. Subarus also have the reputation for giving full satisfaction at a lower price.
- Lexus: For those looking for more high-end cars, Lexus is the way to go. Awarded with the best luxury brand resale value in 2016 (for the 5th year in a row), Lexus offers stylish cars from a brand focused on providing reliability, durability, and quality.
What types of cars are best?
While the make of your car is important, it is also true that certain types of vehicles hold their value better than others as well. The most valuable types of vehicles include:
- Trucks: When it comes to durability, trucks are some of the best vehicles. Because of their durability and popularity, trucks hold their value better than almost any other kind of vehicle. For example, prices for a used pickup truck less than nine years old have dropped only 1 to 2 percent, while the normal price drop for most vehicles is between 10 and 15 percent.
- Compacts: Compact vehicles were made to be efficient. Less space means less car to move which leads to a longer lasting engine. Durability is key to figuring out which cars will hold value, and compact cars tend to stick around for a long time. While you will see compact cars in large numbers on used lots, you will need to choose your make well. A compact car from a bad company will have very little trade in value, so choose your make wisely