It’s no secret that some vehicles hold their value better than others. Trucks tend to hold high resale value, and some brands have proven to hold their resale value extremely well. If you’re looking to purchase a car soon, and you’re wondering which vehicles hold their value the best, we’ve got a few suggestions.
Depreciation and Your Vehicle’s Value
The value of your used vehicle is heavily dependent on depreciation and supply. Deprecation is the loss of value over time, influenced by things like mileage, age, and desirability. Supply and demand matter, too. When there's more of the same model available on dealer lots, your vehicle may have a lower actual cash value. The time of year counts toward value as well. For example, trucks and SUVs are more in demand during the winter months in certain parts of the U.S.
On average, a brand new vehicle only holds about 30% to 40% of its original value after five years. Some hold more value for longer, keeping around 50% to 60% at five years. For example, the 2020 Toyota Tacoma is projected to hold 61% of its value after five years, according to Kelley Blue Book, a trusted vehicle valuation website.
Having a car that holds its value makes it easier on you if you need to sell it later on. If you’re the type of person that likes to upgrade your ride frequently, then investing in makes/models that hold value is a good idea.
What Makes and Models Hold Their Value?
Typically, trucks and SUVs tend to hold their value better than midsize/compact cars. Some brands that have high resale value typically include:
If you’re looking to purchase a vehicle that can stand against the test of time and hold itself against depreciation, here are some winners in terms of values for 2020 models according to Kelley Blue Book:
- 2020 Subaru Crosstrek
- 2020 Jeep Wrangler 4-Door
- 2020 Subaru Impreza
- 2020 Toyota Avalon
- 2020 Toyota Prius Prime
- 2020 Chevrolet Silverado HD
If purchasing a newer model isn’t something you’re interested in, here are some 2015 models that battled depreciation well according to Kelley Blue Book:
- 2015 Honda Fit
- 2015 Subaru Impreza
- 2015 Subaru Legacy
- 2015 Jeep Wrangler
- 2015 Toyota Camry Hybrid
- 2015 Toyota Tacoma
Seeing the trend of manufacturers and vehicles with some of the best resale value? The biggest downside to investing in a car that holds its value is that you may end up having to pay a little more.
Choosing a Vehicle With High Value
“You get what you pay for” can ring true for vehicle financing. If you want a car that holds value over time, then you may have to shell out a little more cash and opt for a higher monthly payment. In addition to that, you may have to do some legwork and research to find a good price for the vehicle you want. But long term, a reliable car can be worth the work.
If you have less than perfect credit, financing a car that holds up against deprecation is great for you as well. With a lower credit score, you may be assigned a higher than average interest rate which can raise your loan balance. By buying a car that holds its value, it can protect you from falling into negative equity which is when you owe more on the vehicle than what it’s worth. The more equity your car retains, the more it can help you when it comes time to trade-in for something else.
Start Shopping for Your Next Loan!
A dealership that can work with your credit score makes it easier to find a vehicle that fits your budget as well. Not every dealership can assist with credit issues, but we know where they are here at Auto Credit Express. We’ve cultivated a nationwide network of dealers that help bad credit borrowers find the financing they need. To get matched to a dealership in your local area that can help with unique credit situations, fill out our free auto loan request form.