If you’ve ever purchased a new car you are probably well aware of the impact that driving it off the lot has on your resale value. A new car could lose as much as 19% the moment it leaves the parking lot—that’s a big chunk of cash coming right off the top. That’s why many personal finance experts often recommend looking to the used market for a car but, did you know, you should still be mindful of resale value?
Here are seven things that can impact the resale value of a car:
Yes, in today’s market—brand matters. It matters for a number of reasons—from reliability to design—but mostly brand matters because of perception. According to ALG, a residual value forecasting company, brands like Toyota, Honda, Hyundai, Subaru and Mazda have the highest brand residual values in the economy arena. While brands like Infiniti, Audi, Lexus and Acura also have the highest in the luxury category.
The lower the mileage the better the car…sort of…There are a lot of things that can make a low mileage car a terrible buy, too. For more on this check out our story on whether it’s better to buy an older car with less miles or a newer car with more miles.