When it’s time to shop for a new ride, don’t limit the search to the new side of the dealership, even if you plan to drive the car for a long time. The average new automobile will be worth only about 35 percent of the purchase price after five years. Therefore, it’s smart to avoid the depreciation hit by finding a great pre-owned car or truck that suits your needs. Do your homework though as some models hold their value better than others. Check out these options for some vehicles that retain their value and have a long useful life.
Trucks and SUVs
If you think you may be ready to trade in the car in a few years, depreciation should be a primary concern for you. In that case, consider a truck or a sport utility vehicle (SUV) instead of a car. Kelley Blue Book gives an annual award for Best Residual Value to vehicles that retain a higher percentage of their value after five years. For the 2018 model year, nine of the 10 models on the list are either trucks or SUVs. One example is the 2018 Toyota Tacoma full-size truck. It is expected to retain more than 60 percent of the original sales price by 2022.
KBB Best Overall Brand
For 2019, Toyota vehicles took home the top three spots in the Kelley Blue Book Best Resale Value Awards. The Tacoma, the Tundra and the 4Runner all demonstrate the ability to bring a solid price when you sell or trade them in. As if that’s not enough to inspire confidence, Toyota also took first prize in three of the vehicle categories evaluated. The 2019 Highlander won the category of 3-Row Mid-Size SUV/Crossover. The 2019 Toyota Tacoma emerged as the winner in Mid-Size Pickup Trucks, and the 2019 Tundra led the pack of Full-Size Pickup Trucks. With all these accolades, it’s obvious why Toyota is the Best Overall Brand in the survey for 2019.
Edmunds Choice for Best Retained Value
For 2018, Edmunds also published a list of vehicles to consider if you’re looking for something that holds its value over time. In the category of Trucks and Vans, Edmunds agreed with Kelley Blue Book and gave the highest honors to the 2018 Tacoma and Tundra. For Midsize SUVs, the 4Runner was the top pick. Honda also did well in the Edmunds study, taking home top awards for the CR-V in the Compact SUV category and the Civic in the Compact Car category. The Honda Accord won in the category of Midsize Car.
Keep Depreciation in Mind
The allure of a shiny new car is appealing, no doubt. Sometimes, new may be the best choice. However, a wise shopper keeps depreciation in mind no matter whether they’re buying new or preowned. With such extensive data available from reputable sources, there’s no excuse for not doing your homework where the long term value of your vehicle is concerned. When you’re ready to make your purchase, visit Rath Auto Fort Smith to find just what you’re looking for.
Image via Flickr by danielctw
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