What Cars Have the Best Resale Value in Canada?
Last week, Canadian Black Book (CBB), the largest publisher of wholesale used car prices in the country, unveiled its list of vehicles that have the best resale value.
Coming in at number one is the Jeep Wrangler, a SUV which reportedly holds 70% of its MSRP (manufacturer’s suggested retail price) after being on the road for four years. The Wrangler nabbed the top prize in CBB’s 10th Annual Best Retained Value Awards, and also took home the award for best resale price for a compact SUV, for the fifth year in a row, no less.
As the Globe & Mail reports, the auto brand that took home the most awards was Toyota, winning in seven categories, and with fifteen models making the Top 3. According to Vice President of Research and Editorial at CBB, Josh Bailey, “Toyota really has built a reputation for treating customers well. They build well in their factories and have good warranties.”
Following Toyota, Porsche did quite well, winning three categories, with Honda victorious in two, and Subaru one. Ironically, despite a year filled with recalls for Toyota, Bailey says people’s impression of the company has actually improved because of how well they dealt with the situation.
“It comes down to the reputation. People recognize Japanese brands as having long lives and there is a lag in the reputation [that is building for U.S. vehicles],” Bailey explains. “We are seeing long-term quality of domestic products drastically changing.”
Now, you may be asking yourself…
Why Does Buying a Car With a Good Resale Value Even Matter?
For several, several reasons. Most importantly, as Bailey states, because “depreciation is still the biggest cost of ownership. We all watch gas prices, but … people should stop and look at the future value. It may be a great deal month to month, but in the ownership period it may be more expensive.”
As we all know, the moment you drive off the lot in your new car it begins to depreciate in value. And while some people may buy a car and drive it until the very, very end, “most people want to eventually sell their car, so it is important to consider.”
It sure is.
Purchasing a car with good resale value is a significant factor when you’re shopping around for a new, or new to you, car, particularly if you’re looking to get some of your money back after a couple of years of driving it. While vehicles are known to be the furthest thing away from an investment, researching cars with better resale value is about the only way to at least ensure you’ll get some sort of return on your vehicle.
Then, for those of us with debt and/or poor credit, it’s important to remember to incorporate as many money-saving habits into your daily lifestyle as possible. Whether you’re buying new or used – though, for our customers with poor credit we recommend the latter as they’re less expensive, and you’d be paying less in interest as well – finding a car with a better resale value will greatly help you in the future. The money you get back when you decide to sell your car can go towards a down payment on your next vehicle, or you can put it towards your bills, debt, or hopefully even a savings account.
When you’re shopping around for a car and need to take out an auto loan, and chances are that you are – 80% of Canadians actually take out such a loan when buying a vehicle – remember there are several questions you should first ask yourself:
- Do I Have Good Credit? First things first. If you’re looking to get an auto loan, make sure to review your credit score so you understand what shape it’s in – ideally, you should speak to a professional. If you have poor credit, don’t stress, as our specialists at Auto Loan Solutions have the time and resources to get you pre-approved for a loan that will have you driving in no time. Furthermore, our specialists will work with you around the clock to ensure that you adopt better credit-building habits in order to strengthen your score.
- What Kind of Car Can I Afford? If you’re serious about taking out a car loan, you have to be serious about knowing what you can and cannot afford. Don’t let those risky new auto loan terms offered by major banks deter you, especially if you have bad credit. Don’t only focus on what your expenses will be like month-to-month, but OVERALL. Know how much your car will cost including the principal and the interest rates, and find out if you can afford to pay that alongside your other bills, mortgage payments, etc.
- What’s the Best Way to Get A Loan? Know that you have several options here, whether through a credit union, bank, or online lender. If you’ve found yourself saddled with poor credit, know that there are lenders like Auto Loan Solutions that can still potentially approve you for a loan. With over 5,000 cars and trucks in stock, our team of specialists can appropriate the most affordable loan to you on a vehicle that suits your financial needs, putting you on the path to a stronger credit score.
If you’ve done your due diligence and created a thorough budget plan that will allow you to pay off all your bills in a timely, responsible manner, including of course your new auto loan, then apply today for a loan with Auto Loan Solutions! Taking a loan will be the first step towards reestablishing your credit and will put you on the path to financial freedom.
If you’re looking for an illustrative view of cars available in Canada with the best resale value, click here.