Which Used Cars Hold the Most Value?
The first two questions that pop into someone’s head when they’re considering selling their used car are “how much has my car depreciated?” and “how much money can I sell it for?”. The plain fact is that cars are not meant to be investments and usually don’t yield a great financial return when you factor in maintenance, repairs, interest on loans, and insurance payments. But that doesn’t mean you can’t understand the facts and myths about vehicle depreciation and use them to your advantage when selling your used car.
What Do I Need to Know About Car Depreciation?
Depreciation is the value a car loses over time, and it varies from car to car. Kelley Blue Book says that the average car loses 65% of its value within the first five years of ownership. Several factors determine depreciation, including the model’s popularity, perceived quality, supply, and whether or not the vehicle belongs to the current design generation.
The good news is research and consumer reports have shown that it’s financially smarter to buy used cars. When you buy a new car it loses on average 10% or more of its value the second it’s driven off the dealership lot. Couple that with the 7-12% yearly depreciation rate and within the first year of owning a new car it has depreciated a national average of 20%. If you happen to drive a lot, the loss of value will be even greater.
In an area like Voorhees, New Jersey, where the average resident is 27.3 years old, right now the used car market for both buying and selling is prime.
Where Can I Learn About Used Cars Pricing Guides?
Although a pricing guide is typically used by someone looking to buy a used car, it can come in handy as you attempt to sell your car as well. A pricing guide can give you a ballpark range for the price your specific car will sell for. To make things even easier for someone looking to sell their car, We Buy All Cars in NJ provides sellers with a free and accurate market value quote of what their car is worth by filling out the form on our sidebar. You can also call us at (856) 834-5558 and a representative can get all the necessary info over the phone to provide you with an accurate price quote as well.
What are the Differences in New and Used Car Values?
Traditionally, 2 and 3-year-old used cars are the best values for buyers because the price is lower than buying new and the car has already taken its biggest depreciation hit. But, it’s important to remember that factors like vehicle reliability, warranties and repairs, safety features, insurance, and interest rates also play big roles in the value of a used car.
- Reliability. As the craftsmanship of cars continues to elevate over time, used cars are lasting longer. A Consumer Reports survey shows that 5-year-old vehicles in present day have fewer problems than 5 year-old vehicles in 2007. Cars can reach up to 200,000 miles today without encountering any major overhaul.
- Safety. It’s true that newer cars have the latest bells and whistles, but the standard safety features have been present in cars for quite a few years now, such as antilock brakes, side airbags, and traction control.
- Warranties and Repairs. It goes without saying that newer cars require less maintenance and repair than an older car that is either out of warranty or getting very close to it. But again, even if an owner has to pay for more repairs and car parts, the occurrence is more infrequent than in the past and the savings is still greater than buying a brand-new vehicle.
- Interest Rates. Yes, loans for new cars have a lower interest rate, but what is not always known is that a normal used car loan that has a rate within one percentage point adds only about $7-$15 to your monthly payment.
- Insurance. This is pretty straightforward – you’ll pay less to insure a used vehicle than you would a new version of the same car.
Do Used Cars Hold Value?
Almost every used car and truck is more valuable today than they used to be. Polk Automotive Data Service showed that the average car on the road today is close to 11 years-old compared to 9 years-old 10 years ago. As fewer new cars are manufactured, the value of used cars is climbing and so is the popularity of older makes and models. Even pick-up trucks and minivans are being bought up at faster rates as the demand has risen 2.6% and 0.2% (respectively) over the past two years.
Which Used Cars Hold the Most Value?
Any age vehicle has value, and the following list of the most popular used cars over the past 10+ years compiled from Kelley Blue Book (KBB) and various consumer reports will prove it!
Overall ranking of used cars that have retained their value over time:
- Ford Escape. Retained value of 22.6%.
- Mazda Miata MX-5. Retained value of 23.3%.
- Subaru Forester. Retained value of 25.3%.
- Hyundai Elantra. Retained value of 26.6%.
- Nissan Altima. Retained value of 26.7%.
- Honda CR-V. Retained value of 30.7%.
- Toyota RAV 4. Retrained value of 35.4%
- Jeep Wrangler. Retained value of 36.7%.
- Toyota Corolla. Retained value of 39.5%.
- Toyota Tacoma. Retained value of 43.8%.
KBB’s Favorite Used Cars Under $8,000 include:
- 2005 Volvo S60
- 2007 Ford Escape
- 2005 Honda Pilot
- 2004 Toyota Prius
Kiplinger Special Report of 2015’s Best Used Cars based on value, safety, and performance include:
- 2013 Toyota Camry
- 2013 Chevrolet Tahoe
- 2011 Mercedes-Benz E-Class Sedan
- 2013 Kia Soul
- 2011 Lexus RX 350
- 2013 Cadillac CTS
- 2012 Audi Q5
- 2012 Honda Civic
- 2013 Hyundai Elantra GT
In today’s used car market, there’s good news for both buyers and sellers. It’s very easy to find a reliable car that suits your taste, personality, and budget. We Buy All Cars in NJ prides themselves on being able to pay the general public significantly more money than any dealer. Give us a call today at (856) 834-5558 to discuss any of your car needs with selling or buying a vehicle.