9 Rides Worth Re-Selling & What They Can Do For You
Cars, much like people, aren’t built the same. Of course, some folks would argue with such a statement since designers are jumping from car brand to the next, thus endowing others with their designs. However, no one can argue that all cars depreciate, and more importantly, there’s no dispute that some cars retain their value longer than others. Have you ever wondered which cars fit into this category? This post will answer your questions, and may surprise you or confirm your suspicions.
Aging Like Fine Wine
Car depreciation is inevitable. However, that doesn’t mean all hope is lost when you plan on selling your vehicle. The important thing is choosing the right car from the beginning, one that not only meets your performance needs, but also, your intentions for reselling. Also surprising, are the vehicles that don’t fall fast along the slope of car depreciation. The Canadian Black Book (CBB) designates a resale value (percentage of original price) for vehicles that are four-years old (and beyond), while the Automotive Lease Guide (ALG) does the same for current, mainstream models.
The Toyota Family
The Toyota brand has established itself as one of the most valuable car brands due to their resale value. In fact, there are a several Toyota vehicles that are known for their slow rate of depreciation.
- Toyota Prius – Often seen as a yuppie-mobile, this full hybrid, mid-sized hatchback (was a compact sedan up until 2003), has earned its stripes as a vehicle of high resale value (57 per cent CBB).
- Toyota Avalon – The Avalon isn’t a top-seller for Toyota, but it is one of their most valued vehicles. At a 44 per cent CBB and 39.6 per cent ALG score, the Avalon is a great choice for those who want to steer clear from rapidly depreciating cars.
- Toyota Tundra – You’d think a pickup truck named Tundra would sell like crazy in Canada. However, Toyota doesn’t push it that much. Yet still, it’s 53 per cent CBB and 39.5 per cent ALG score makes it a great vehicle to resell down the road.
Other honorable mentions in the Toyota brand, include the Toyota Sequoia, Toyota FJ Cruiser and the Toyota Tacoma.
The Luxury & Premium Sport Brands
It’s probably of no surprise to see at least a few luxury vehicles in here. Although some individuals suggest that these cars are mere status symbols, few can deny their intrinsic value. And for those who choose to buy such vehicles, they will be in for a treat when it comes to reselling.
- BMW 1-Series – The 1-Series isn’t considered BMW’s strong brand for no reason. Along with Mini Cooper, BMW’s sub-brand, the 1-Series retains some of the highest resale values in Canada at a score of 54 per cent CBB.
- Lexus GS – This full-size premium model is a star seller, despite sitting in the same group as BMW’s 5-Series and Mercedes-Benz E-Class. As for resale value, the Lexus GS stands at 50 per cent CBB and 47.4 per cent.
- Porsche Boxster – The Porsche Boxster is not only great to own, but also, nice to sell. It’s 60 per cent CBB score makes it ideal for resale, not to mention, it is an easy sell thanks to its devoted fan base.
Vans, Minivans & SUVs
- Honda Odyssey – Unlike the Dodge Caravan, a top-seller in Canada, the Honda Odyssey is a minivan that has low fleet sales. However, this very fact is part of the reason why it retains a low depreciation score of 48 per cent CBB and 40.5 per cent ALG.
- Mercedes-Benz Sprinter – You may not be too familiar with Mercedes-Benz full-size van, the Sprinter, but it’s quite the catch for those who want low ownership costs. Additionally, its 63 per cent CBB score makes it ideal for reselling.
- Subaru Outback – In the mid-size SUV arena, there is the Subaru Outback. A versatile and economical vehicle, the Outback maintains a score of 55 per cent CBB, making it a smart choice for those looking to own and eventually sell an SUV.
Does it Matter Whether You Know Car Values or Not?
In short, knowing which vehicles suffer car depreciation the fastest or slowest is important information. With that said, it matters more to certain people instead of others, but nonetheless, helpful for all.
People Who Need to Know Car Value
- Those Who Plan to Resell Their Cars – The most obvious group of people who should care about care depreciation are those who plan to sell their cars after they’ve finished paying for it. Inevitably, they’ll lose some value and therefore, can’t sell their vehicle for its original price. However, they can mitigate some loss by choosing a car that retains it’s value, longer.
- People Who Intend to Refinance – For individuals looking to refinance, car value is important to know as well. For example, people who need subprime car loans will pay significantly more than their prime rate counterparts. It’s a fair assumption they would at least like to sell their car for a decent amount as a quasi-compensation for what they’ve already spent. Therefore, knowing which vehicles depreciate fast or slow can help them choose the right car from the beginning.
- Deciding Your Car’s Fate – Deciding what to do with a car when its life cycle comes to an end isn’t always easy. Should you hand it off to the kids? Is it better off in the junkyard? Could you try to trade it in or sell it? There are so many options to consider, and the best way to know is by considering the car value.
Gems on Wheels
Oh how sweet it would be if cars were like antiques or fine art. Although there are some collectible cars worth hundreds of thousands, the reality for most, is a gradual drop in value. What buyers have control of, however, is how much their vehicle’s worth declines – by choosing an automobile that retains high car value in the first place. If you want to find such options, consult a rating site such as Canadian Black Book, or a credit advisor who can clue you in on the best finds. Quickly and surely, you’ll find a car that can spend a few extra years away from the scrapyard!
Are you in need of a loan for a car that’s suitable for your credit profile? Get in touch with us so our credit advisors can help you find the right match!