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.

Testimonials

“No hassle and easy…had check quickly and I was on my way to the bank.”-Oliver Cruz1star1star1star1star1star

“We found them to be not only fair but very knowledgeable. I will use this service again in the future.”-Judy B.1star1star1star1star1star


Read More Testimonials

Don't Trade It
We Will Buy It

Whether it's worth
$100 or $100,000

"We want your used car"

We Buy All Cars In NJ

701 Cooper Road, Suite #10,
Voorhees, New Jersey, 08043
p: (856) 834-5558
e: [email protected]

What Kind Of Paperwork Do You Need To Sell Your Vehicle?

What Kind Of Paperwork Do You Need To Sell Your Vehicle?

What Kind Of Paperwork Do You Need To Sell Your Vehicle? When you are ready or in the market to trade in your vehicle for a new set of wheels, you want to make sure you have all the necessary paperwork in order to ensure a smooth transaction.  Having the necessary...

How to Maintain Your Car’s Value

How to Maintain Your Car's Value Most people are only concerned with their used car value when it is time to trade it in or sell it. However, taking simple steps to care for your car on a regular basis will get you the maximum amount of money when it is time for a new...

Make New Year’s Resolutions for Your Car

Making New Year’s Resolutions is as much a holiday tradition as Santa Claus or getting soused on New Year’s Eve. The most common resolutions are predictable – lose weight, pay off debt, or get a better job. How do your car plans figure into your resolutions though?...

Are Holiday Car Sales Worth It?

Are Holiday Car Sales Really Worth it? Holiday car sales get a lot of hype. If you open up any newspaper or turn on the television, the advertisements are everywhere. The holidays are expensive enough though, so before you head out to the car lot, seriously consider...

How to Take Advantage of Holiday Car Deals

The Best Holiday to Buy a Car If you’re looking to save the maximum amount of money on a new or used car, the best time to buy is the week between Christmas and New Year. Car dealers are looking to move leftover models, and to meet their end-of-year sales goals. The...