7 Things That Affect Resale Value

If you’ve purchased a new car you are aware of the impact that driving it off the lot has on your resale value. Here are the things to be mindful of if you want to resell your car.

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, which is a big chunk of cash. That’s why many personal finance experts often recommend looking to the used market for a car but you should still be mindful of resale value.

Be aware of cars that depreciate more than others before you set out to buy. This article from Edmunds describes a good practice of buying a car in its second, third or fourth years, because in the first year a car can lose about $7,000 but over the next three years combined the car won't lose that much value, thus saving you a lot of money.

Here are seven things that can impact the resale value of a car:

1.Brand

In today’s market, brand matters not only because of reliability and design, but also because of perception. Toyota, Honda and Subaru have the highest brand residual values in the economy car arena. Land Rover, Audi and Lexus have the highest in the luxury, or "premium" category, according to ALG, a residual value forecasting company.

2. Mileage

The lower the mileage the better the car… sort of. There are lots of things that can make buying a low mileage car the wrong thing to do. 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.

Buying Tips

How To Tell If You Are Getting A Good Lease Deal On Your New Car
When is the Best Time to Sell Your Used Car?
What is a 0% Car Loan?
2017 Car Shopping Trend Report: How Prepared Are Consumers?
What are Dealer Fees & Which Ones are Negotiable?

Financing

What is a 0% Car Loan?
What a Fed Rate Increase Means for Your Auto Loan
How to Refinance Your Car Loan
How Much Down Payment Do You Need to Buy a Used Car?
3 Main Factors in Getting a Car Loan

Abigail Bassett

Digital media content producer/consultant & former CNN senior producer, now running CN'TRL : Cars, Tech, Real Estate & Luxury.