What Is Resale Value?

Resale value is the amount your car is worth when you decide to sell it, either to a private buyer or a dealership. A car with a high resale value retains a significant portion of its original price, making it a smart investment for buyers who plan to upgrade in the future.

Why Resale Value Matters

Here’s why resale value should be a key factor when choosing a car:

1. Lower Ownership Costs: A car with strong resale value reduces your overall financial loss over time.
2. Easier Selling Process: High-demand models sell faster and at better prices.
3. Financing Benefits: Cars with high resale value may have better lease or trade-in offers.

Factors That Influence Resale Value

Several factors determine how much value a car retains over time:

• Brand Reputation: Reliable brands like Toyota, Honda, and Subaru tend to hold value better.
• Depreciation Rates: Some cars lose value faster than others.
• Maintenance Costs: Cars with low repair and service costs are more desirable.
• Fuel Economy: High-MPG vehicles are appealing to cost-conscious buyers.
• Features and Technology: Advanced safety systems and infotainment boost value.

Step 1: Research Depreciation Rates

Depreciation is the biggest factor affecting resale value. On average:

• Cars lose 15–25% of their value each year.
• Most vehicles lose up to 50% of their value within the first 3–5 years.

Tip: Research depreciation trends for the model you’re considering. Websites like Kelley Blue Book and Edmunds offer depreciation calculators.

Step 2: Check Brand and Model Reputation

Certain brands consistently rank high for resale value due to their reliability and quality.

Top Brands with Strong Resale Value:

• Toyota: Known for dependability and low maintenance costs.
• Honda: Respected for fuel efficiency and long-term reliability.
• Subaru: Popular for AWD models and high resale demand.
• Ford and Chevrolet (Trucks): Trucks like the Ford F-150 and Chevy Silverado retain value well due to high demand.

Step 3: Assess Vehicle Features and Trends

Modern technology and features can increase resale value if they align with market trends.

Features That Retain Value:

• Advanced safety systems (e.g., lane-keeping assist, adaptive cruise control).
• Fuel efficiency (e.g., hybrid or electric options).
• Popular tech like Apple CarPlay and Android Auto.

Step 4: Evaluate Ownership Costs

High maintenance costs can hurt resale value. Look for models with:

• Affordable repair parts.
• Reliable engines and transmissions.
• Long warranty periods (e.g., Hyundai or Kia’s 10-year/100,000-mile warranties).

Step 5: Use Online Tools to Check Resale Value

The following websites provide accurate resale value estimates:

• Kelley Blue Book (KBB): Offers trade-in and private sale values.
• Edmunds: Includes depreciation calculators and pricing tools.
• Carfax: Helps estimate resale value based on vehicle history.
• Autotrader: Offers pricing insights for used cars based on market trends.

Tip: Use multiple tools for a more accurate comparison.

Step 6: Consider Mileage and Condition

The fewer miles on a car, the higher its resale value. Regular maintenance also plays a key role.

• Low Mileage: Cars with under 12,000 miles per year retain more value.
• Condition: Avoid dents, scratches, and interior damage to preserve resale appeal.
• Service Records: Keeping a documented service history shows potential buyers the car was well cared for.

Step 7: Look at Market Demand

Supply and demand significantly impact resale value.

• High-Demand Models: Popular models like the Toyota Corolla or Honda CR-V tend to retain value.
• Regional Demand: Trucks are highly valued in rural areas, while compact cars may be in higher demand in urban regions.

How to Choose a Car with Strong Resale Value

1. Research Top Brands: Start with brands known for reliability.
2. Consider Certified Pre-Owned (CPO): CPO cars often include extended warranties and have undergone inspections, boosting their value.
3. Avoid Over-Customization: Unique colors or aftermarket upgrades may reduce resale appeal.

Resale Value Trends by Car Type

• Sedans: Reliable and fuel-efficient sedans like the Toyota Camry hold value well.
• SUVs: Compact SUVs like the Honda CR-V are highly desirable in today’s market.
• Trucks: Full-size trucks, such as the Ford F-150, have excellent resale value due to utility and demand.
• Hybrids/Electric Cars: Models like the Toyota Prius maintain strong resale value due to their fuel savings.

Impact of Fuel Economy on Resale Value

Fuel efficiency is a key selling point. With rising gas prices, cars offering 30+ MPG or hybrid options tend to hold value better.

Certified Pre-Owned Cars and Resale Value

CPO vehicles often retain value longer because:

• They include extended warranties.
• Buyers perceive them as more reliable than non-certified used cars.

Tips for Improving Your Car’s Resale Value

1. Keep It Clean: Regularly wash and detail your car to maintain its appearance.
2. Service On Time: Stick to the manufacturer’s maintenance schedule.
3. Avoid Major Damage: Repair dents, scratches, and windshield cracks promptly.
4. Save All Records: Keep documentation of services, repairs, and inspections.