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Resale value is a crucial consideration when buying or selling a car, as it directly impacts the financial aspects of the transaction. If a new car depreciates faster than its competitors, it can lead to lower trade-in values and the potential for being underwater on a long-term loan. Opting for a vehicle with a strong resale value can result in significant savings over time. Our annual Best Resale Value Awards serve as a helpful guide in identifying cars with enduring long-term value.
The maintenance and driving habits of a car owner also play a role in determining resale value. Cars with a comprehensive service history and lower mileage typically depreciate more slowly. However, various other factors contribute to this equation.
The desirability of a new car significantly influences its depreciation rate. Vehicles with a reputation for reliability and quality tend to retain their value well due to sustained demand in the second-hand market.
Additionally, fuel-efficient cars with low tax rates often experience slower depreciation, given their cost-effectiveness in the long run.
In 2023, all cars, in general, are exhibiting improved value retention compared to 2019. This shift is attributed to reduced new car production during the pandemic, leading to a constrained supply of used cars. Before the pandemic, the average car would lose about 50 percent of its value over five years. Presently, the average 5-year depreciation rate is 38.8 percent, with electric vehicles facing the highest depreciation at around 50 percent of their value.
Best Brands in cars for Resale Value After 5 Years
Subaru:
Subaru consistently ranks among the top brands for resale car value. Models like the Subaru Outback and Subaru Forester are known for their reliability and rugged appeal. On average, Subaru vehicles have shown a resale car value retention of around 50% or higher after five years.
Honda:
Honda has a longstanding reputation for producing reliable and fuel-efficient vehicles. Honda models such as the Civic and Accord tend to hold their value well. On average, Honda vehicles often retain around 55% to 65% of their original value after five years.
Toyota:
Toyota is renowned for its durable and well-engineered cars, contributing to strong resale car values. Models like the Toyota Camry and Toyota RAV4 are consistently popular in the used car market. On average, Toyota vehicles tend to retain approximately 60% to 70% of their car value after five years.
Mazda:
Mazda has gained recognition for producing stylish and fun-to-drive vehicles that also offer good resale value. Models like the Mazda3 and Mazda CX-5 have contributed to Mazda’s positive standing in this regard. On average, Mazda vehicles often retain around 55% to 65% of their original value after five years.
Volkswagen:
Volkswagen has made strides in improving the resale car value of its vehicles. While historically not as high as some other brands, recent models like the Volkswagen Golf and Volkswagen Tiguan have shown improved retention. On average, Volkswagen vehicles may retain around 45% to 60% of their original value after five years.
It’s important to note that these percentages are general estimates and can vary based on specific models, regional market conditions, and individual vehicle history. Additionally, the automotive industry is dynamic, and resale car values can be influenced by factors such as market demand, fuel efficiency, and overall reliability.
2023 Best Resale Value: Top Cars
Jeep Wrangler 2 Door
Average 5-year depreciation: 92%
The Jeep Wrangler, an icon of timeless adventure and unmatched off-road capabilities, commands attention with an impressively low 5-year depreciation rate of 92%. Beyond its rugged allure, the Wrangler’s sustained popularity as a “lifestyle” vehicle, combined with minimal aesthetic changes, positions it as a robust investment. Many Wranglers retain a substantial portion of their value for up to seven to twelve years, reinforcing its enduring appeal.
Volkswagen Tiguan
Average 5-year depreciation: 85%
The Volkswagen Tiguan, a cornerstone in the crossover segment, showcases admirable resilience with an 85% retention of value over a 5-year span. While specific percentage data may not be available, market trends underscore its reputation as a dependable choice for those seeking lasting value in the midsize SUV category.
Lexus IS
Average 5-year depreciation: 75%
The Lexus IS, seamlessly blending luxury and performance, demonstrates solid resale car value with a 75% retention over a 5-year period. While specific percentage data is not provided, market insights confirm the IS’s enduring desirability, making it a wise investment for those valuing opulence and long-term value.
Toyota Prius
Average 5-year depreciation: 78%
The Toyota Prius, a pioneer in the hybrid segment, not only excels in fuel efficiency but also stands out for its robust 78% retention of value over a 5-year period. Market insights highlight the Prius’s reputation for reliability and cost-effectiveness, positioning it as a sought-after choice in the environmentally conscious automotive landscape.
Toyota Tacoma
Average 5-year depreciation: 67.05%
The Toyota Tacoma, a stalwart in the pickup truck segment, distinguishes itself with an impressive 67.05% retention of value over five years. While specific percentage data is not provided, market trends underscore the Tacoma’s reputation for durability and off-road prowess, solidifying its position as a reliable choice for truck enthusiasts.
Subaru BRZ
Average 5-year depreciation: 75%
Subaru’s sporty offering, the BRZ, captures attention with a resilient 75% retention of value over a 5-year period. Specific percentage data may not be available, but market trends emphasize the BRZ’s appeal, establishing it as a noteworthy contender in the performance car category.
Porsche 911
Average 5-year depreciation: 86.97%
The iconic Porsche 911 secures its place among the best for resale car value with an average 5-year depreciation of 86.97%. Backed by market data highlighting its timeless allure and enduring desirability in the high-performance automotive segment, the 911 maintains its consistent reputation as a sports car icon.
Honda Accord
Average 5-year depreciation: 88%
The Honda Accord, renowned for its reliability and practicality, showcases a commendable 88% retention of value over a 5-year period. Market insights affirm its enduring popularity, making it a well-rounded and lasting choice for sedan enthusiasts.
Factors That Affect Your Car’s Resale Value
The resale value of a car is influenced by various factors, with mileage and overall condition being key determinants. Here are some factors that can affect your car’s resale value:
Mileage and Condition:
Mileage: The number of miles a car has been driven is a crucial factor. Generally, lower mileage is associated with a higher resale value, as it indicates less wear and tear on the vehicle.
Overall Condition: The physical state of the car, including the exterior and interior, significantly impacts its resale value. Regular maintenance and timely repairs can help maintain a vehicle in good condition.
Interior Condition:
The state of the interior, including the cleanliness, condition of seats, dashboard, and functionality of features like air conditioning and entertainment systems, can influence a potential buyer’s perception and, consequently, the resale value.
Location:
The geographical location where a car is primarily used and stored can affect its resale value. For instance, cars from regions with harsh climates or high levels of road salt may experience more wear and corrosion, impacting their value.
Market Demand:
The popularity and demand for a specific make and model in the used car market can influence its resale value. Cars with a strong reputation for reliability and positive reviews tend to have higher demand, supporting better resale prices.
Upgrades and Modifications:
While personalizing a car with upgrades or modifications may enhance its appeal for some buyers, it’s essential to recognize that these changes might not resonate with everyone. Certain modifications may even negatively impact the resale value.
Vehicle History Reports:
The inclusion of a clean vehicle history report is crucial for establishing trust with potential buyers. Reports that indicate accidents, title issues, or other concerns can significantly impact the perceived value of the car.
Sell Used Cars with YourCarIntoCash for the Highest Resale Value!
when it comes to maximizing the resale value of your car, the choice of the right vehicle plays a crucial role. The 2023 automotive landscape highlights several models that stand out for their impressive 5-year depreciation rates, making them solid investments for the long term.
For those seeking the epitome of rugged adventure, the Jeep Wrangler 2 Door leads the pack with an extraordinary 92% retention of value over five years. The Volkswagen Tiguan, Lexus IS, Toyota Prius, Toyota Tacoma, Subaru BRZ, Porsche 911, and Honda Accord also exhibit remarkable resilience in retaining their worth, making them compelling choices in their respective categories.
If you’re looking to sell your car and capitalize on its highest resale value, consider exploring your options with YourCarIntoCash. Leveraging the strengths of these standout models can translate to a rewarding resale experience, ensuring that you not only enjoy the thrill of driving but also make a wise and enduring investment. Choose wisely, and let YourCarIntoCash guide you towards unlocking the full potential of your vehicle’s resale value.
