Whether you are shopping for a new car or looking at a pre-owned model, you do want to know that you are making the best possible choice. Depreciation refers to how much value a car loses over time. Those models with high depreciation will not get you as good a return when it is time to sell, and it affects how much you will pay on insurance. So, which cars make the best investment? Let’s check with the experts.
Toyota is A Good Bet
At CarCostCanada, the 2019 list of Slowest Depreciating Cars includes a long list of Toyota models. For the subcompact category, check out the Toyota Yaris. The Toyota Prius leads the compact car segment, with the Avalon, 4Runner, Tundra, and Sienna also making an appearance. Of course, you must always take into consideration how many miles are placed on the car when looking at its retained value.
Honda Steps Up to the Plate
Over at KBB.com, the Honda brand consistently appears in all their award lists for 2019 regarding resale value and overall reliability. The Honda Ridgeline combines the versatility of a pickup with the fun of an SUV, creating the perfect party vehicle. The Honda HR-V and Honda CH-R highlight the crossover/SUV segment, providing a boat load of room inside while delivering a capable commuter car.
Color Figures into the Calculation
You might love that neon green muscle car sitting on the used car lot, but it isn’t everybody’s cup of tea. When you are shopping for a new car and want to find one with the highest resale value, it is smart to opt for the more conservative shades. Once again, the most popular car colors for both the new and used car market remain black, white, and varying shades of silver. The bolder colors have a harder time finding a second home and may sell for less.
Trucks Can Last Even Longer
If you are thinking about durability, vehicles that are built on a truck chassis are more likely to be able to reach that elusive 200,000 mile (ca. 321,869 km) mark while retaining more of their resale value. The Jeep Wrangler is the smallest SUV that is still constructed on a more rugged frame. Other larger SUVs in this segment include the Ford Expedition and the Chevrolet Suburban.
Collector Cars Break the Mold
Of course, if you fall in love with the Bullitt Ford Mustang or the SuperBee Dodge Challenger, there is a better chance that your collector version of a streetcar will actually increase in value over an extended period. But you should never bet that your daily driver will become a future cult favorite.Once you find the right make and model for your next new-to-you car, it’ll be time to apply for a new car loan. While you looked for a reliable and versatile ride, your bank will consider its future resale value when offering you a higher or lower rate.