When buying a car, many people consider the big picture: what make and model not only appeals to them and fits within their budget but will also retain value so that it can be sold in a couple of years to finance their next purchase. Thus whether you’re buying a new or pre-owned car there are plenty of good opportunities on the market for buyers to find a vehicle based on good resale value.
Americans buy about 17 million new and 40 million used cars each year. The growing Certified Pre-Owned trend has given people new confidence in purchasing used cars as these are mechanic-certified vehicles are newer and have relatively low mileage along with offering some reassurance of warranties against mechanical failure. These vehicles represent over 20 percent of used car sales.
What Car Has The Best Resale Value: 8 Factors to Consider
Personal taste and preference is just one aspect of a vehicle purchase decision. Ways to determine whether a car has good resale value include:
- The manufacturer’s reputation and track record;
- A low depreciation rate (purchase price vs. sale price a few years later);
- The vehicle’s mileage;
- The vehicle’s condition, including wear and tear, dents and glass damage;
- Consistency and completeness of maintenance and repair records;
- The quantity of similar models on the market (whether it’s a common model or rare);
- Age of the vehicle, and
- Information derived from VIN decoding
If you’re considering buying a used vehicle, always have it checked by a mechanic you trust. That person will run a VIN check to find out about accidents and major repairs, how many owners it had, what climate it was kept in, and what manufacturer recalls may still be active. A knowledgable mechanic will know the flaws common to that vehicle manufacturer and will look at the condition of parts that commonly wear out such as belts, tires, catalytic converters, and exhaust systems.
Everything about a vehicle affects resale value, from exterior color (common ones like blue, silver, black, and white are more favorable than lime green, rocket red, or cabbie yellow) to optional features. Two vehicles of the same make, model, and year, both in great condition, will have different resale values if one has air conditioning and leather seats and the other one does not, but that is not to say that “extras” always increase value, because too much personalization or modification may detract from resale value. Kelly Blue Book named the following as the vehicles with the highest resale value in a recent year:
- Subaru and Porsche brand vehicles in general;
- Toyota Tacoma, Tundra, Avalon, Prius Prime, and Highlander;
- GMC Yukon, and
- Lexus luxury sedans.
After five years, the following vehicles retained 50 percent or more of their value, according to the car website Jalopnik:
- Porsche Macan;
- Honda Ridgeline;
- Toyota Tacoma;
- Ford F-series;
- GMC Sierra;
- Chevy Silverado;
- Toyota 4Runner;
- Jeep Wrangler, and
- Chevy Colorado.
Most Popular Car Models By State
Different parts of the country favor specific makes and models of cars, with the Heartland and the Midwest predisposed to American car makers’ roomy models like Dodges, Fords, Chryslers, and Jeeps. Coastal urbanites are more likely to gravitate toward compact versions of SUVs, sportscars, electric vehicles, hybrids, and foreign makers such as BMW, Honda, Tesla, Toyota, and Hyundai. Resale therefore depends somewhat on the demand in the area where the vehicle is located, although high-demand vehicles sold to wholesalers like Carmax may be shipped to alternative points of sale if desired.
The dichotomy in America is clear: Ford F-series pickup trucks represent the best-selling vehicle in the country, followed by the Toyota Camry, which is the world’s most popular sedan. If you buy a new version of your state’s most popular vehicle it’s likely you’ll be rewarded with good resale value because the vehicle is in demand there – but it will have to be in pristine condition because there will be a lot of competition due to the high number of those models available. By states, most popular vehicles include:
- The Ford F-150 is the most popular vehicle in South Carolina, Missouri, Minnesota, Tennessee, Texas, Utah, Georgia, Kentucky, Louisiana, and New Mexico;
- The Chevy Silverado 1500 is the best selling vehicle in Maine, Delaware, Wisconsin, New Hampshire, and Indiana;
- Honda sedans like the Civic and Accord are the most popular cars in California, North Carolina, and Ohio;
- Floridians are fond of Toyota Corollas while New Yorkers buy the most Nissan Rogues;
- Subaru Outback is most popular in Colorado, Washington, and Oregon, and
- Vermont, Nevada, Rhode Island, and Massachusetts buy the most Toyota Rav-4s.
Tips on the Best Certified Preowned Cars
Certified preowned vehicles may be a better risk than those that aren’t certified, but expect to pay more for one. Before you buy, do some homework to find out if there are non-certified vehicles of a similar vintage and condition available that may cost significantly less. If you’re searching for the best deal in a certified preowned vehicle, it’s important to understand the difference between those vehicles that are certified by the car dealership and those certified by the manufacturer. Manufacturer’s warranties on components like the drivetrain are generally only available through dealerships, allowing the owner more options for getting warranty work done. Look up the manufacturer’s requirements for certification and make sure the vehicle you’re considering matches them, including with specific replacement parts. Vehicles that are modified or that have been repaired with off-brand parts may not qualify or may not be covered under a certified preowned program regardless of their presence on the car when you purchased it. Other conditions may also void a certification, such as having been totaled (do a VIN check for the vehicle history report).
