When you shop for a new car, it pays to keep your attention on one subject: potential resale value. The problem is, as soon as you sign for the loan and drive off the lot, the value immediately decreases. So, as you pay down the balance you’ll want a car that will retain its look and value to maximize the profit when you are finally ready to sell.
The Factors
No matter the make, model or trim level you prefer, if you want to purchase a car that offers reliable resale value, experts say you should look for five key factors. Taken together or separately, the five factors all contribute their own amount of heft to a car’s future sale price, even if its ten or more years old. You need not be a rocket scientist or auto mechanic to spot high resale potential. Simply search for the following five features that spell the acronym T-BEAM, (Transmission, Body, Engine, Accessories, Make):
- Transmission: All other things being equal, you’ll be able to sell your car more easily, and for a higher price, if the transmission is automatic. Manual-drive cars are getting rarer with the passing of each model year. In the language of resale-ese, rare usually translates as “harder to sell.” And that almost always means a lower price.
- Body: For decades, the best sellers among quality used cars have been hatchbacks, sedans and pickup trucks. For the sedans and hatches, resale values are highest for four-door models rather than two-door variants. Pickups are perennial fast-sellers in the used car world as well, as you’ll likely notice anytime your drive on the open road. Notice how many small pickup trucks are still running, and well-maintained, after several decades.
- Engine: This has to do with fuel economy because the smaller engine vehicles tend to always sell better than the larger ones. Whether gasoline or diesel versions, smaller engines are favored by the vast majority of used-car shoppers for all sorts of reasons. In addition to fuel economy, smaller-engine cars and trucks are cheaper to maintain and operate.
- Accessories: Experts on resale value say, “The fewer accessories, the better.” You might enjoy lots of fancy gizmos and gadgets on a car, but by and large, the used-car value of a simple machine is higher than a complex vehicle.
- Make: Japanese makes like Toyota, Honda and Subaru are always on the annual lists of best resale value. See the 2018 group of resale champs below for proof of this yearly truth.
The List
Based on the qualities and features mentioned above, you can probably predict some of the cars on the “best resale value” list. Many are popular makes, automatics, get awesome fuel economy, are four-door hatches or sedans, and come with few accessories. It’s really a tried-and-true formula for car buyers. Stick to simple, popular models that don’t guzzle fuel, and strong resale value will usually follow. These cars were best for maintaining value in 2018, listed with best resale value first, and it’s noteworthy that 10 of the top 15 are Japanese cars: Toyota, Honda and Subaru. Three are U.S. models from Chevrolet, and two are from Jeep.
