The estimated resale value of a car can be just as important as the price point when looking to buy a new car. Most people look to save on the price without taking into consideration the money they’ll earn later when they sell the car, which can be a big mistake as this can mean a loss of thousands of dollars in returns.
There are a couple of different angles to consider when trying to determine what kind of vehicle best holds its resale value. We’ll take a look at a couple of different categories to help you the next time you’re looking for a new car.
Best Resale Value Car Brands
When it comes to car brands, determining which brand best holds its resale value is easy. Toyota has won Kelley Blue Book’s Best Brand award in the resale value category for three years in a row. In 2019, they had 10 models either winning in their category or receiving a top three finish. On top of this feat, Toyota had the model with the best resale sale value of all cars in 2019 with the Toyota Tacoma. In addition, their Tundra model placed thirds and their 4Runner was fifth.
Toyota’s success in the resale market comes down to it’s reputation. The Japanese brand has been known for reliability since the 1970’s, so that reputation has had a lot of time to stick in people’s minds. What people think of the brand is important because that’s what drives resale markets: people’s thoughts and how much they’re willing to pay.
Don’t get us wrong though, Toyota has definitely earned their excellent reputation. They build high-quality vehicles that are very durable. Part of the reason for this reliability is that Toyota is slow to implement new features, meaning they have more time to test them and sort out any issues before the features are put on the market. Also, Toyota’s production facilities are local to the area the car is sold in, instead of every car being produced in Japan, the cars sold in the U.S. were made in the U.S., meaning that the car design can be customized to U.S. driving habits.
Type of Cars with the Best Resale Value
In addition to the best brand for resale value being obvious, the best type of vehicle for resale value is clear as well. Trucks, especially pick-up trucks, are always at the top of year-end lists. As we mentioned before, Toyota models Tacoma, Tundra, and 4Runner won 2019’s first, third, and fifth place for the best resale value award. Two of these models are pick-ups and the third is an SUV. The Tacoma had an expected resale value of 62.2% after 5 years, with the Tundra having a 56.9% expected return, and the 4Runner with 56.3%.
If we look at the rest of the top 5 finishers, we see that the Jeep Wrangler came in second, and the GMC Sierra came in first. In fact, no small cars were even in the top 10.
Why Trucks Hold Their Resale Value
Trucks hold their value for a number of reasons, but it all comes down to the utility of a truck. Trucks, especially pick-ups, are working vehicles that need to be able to stand up to large hauls and heavy loads without breaking down. The needs of the tradesmen that rely on trucks for work meant that trucks had to meet a certain standard, and that standard has continued as technology develops. Nowadays, people in the market for trucks are sticklers for reliability, so unreliable trucks just don’t get sold, meaning the ones that are out there are generally durable, making their lifespans long if they haven’t handled too much heavy-duty wear.
When we consider that brand recognition and dependability are some of the things that are most important to a vehicle’s resale value, it’s no wonder that Toyota trucks have consistently been the vehicles that hold their value the longest.
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