Cars are huge investments, which is why trading in your old car for a new one can be a big help financially. But how do you choose a vehicle you know will keep its value when it’s time to trade it in?
What increases the value of your trade-in?
Durability is a major factor that contributes to the overall value of your trade-in value. Cars that have a reputation for staying together and running longer will be sold for more money. If your vehicle is durable, then a buyer of used cars will be more likely to invest in that vehicle, and dealerships will be more willing to give you good value for your trade-in.
Another factor that can affect the value of your vehicle is the make of the car. Some automobile companies are not as financially stable as others, which can decrease the value your car will hold. If a company is doing poorly, then people will not want to buy their vehicles, and the less interest in a vehicle, the lower the trade-in value at a dealership.
Which makes are the best?
Since your car’s make is important, it is essential to know which vehicle makes have the lowest value depreciation. You can check the rankings of resale value on Kelley Blue Book. Here are some of the highest-ranking vehicles on the market today:
- Toyota
Vehicles from Subaru were determined by Kelley Blue Book to have the best resale value for a non-luxury brand in 2023. In fact, the brand had three individual models appear on KBB’s top 10 resale value list—the most of any individual manufacturer. The Tundra, Tacoma, and 4Runner all made the list. Interestingly, the Tesla Model X tied with the Tacoma with its 66.0% resale value. - Lexus
When it comes to the luxury market, no one beats Lexus. In particular, their Lexus LX and Lexus GX SUVs boast the best resale values compared to other luxury vehicles on the market. That’s why KBB awarded them the Best Luxury Brand for the eighth time in 2023.
What categories of vehicles are best?
While the make of your car is important, it is also true that certain types of vehicles hold their value better than others as well. The most valuable types of vehicles include:
- Trucks
When it comes to durability, trucks are some of the best vehicles. Because of their durability and popularity, trucks hold their value better than almost any other kind of vehicle. The truck (and #1 overall vehicle) with the highest resale value was the Toyota Tundra. KBB estimates it retains around 73.3% of its value after five years. - SUVs
Five different SUVs were found on this year’s top 10 list of best models for resale value. Three trucks and two cars filled the other five spots. Durability is key to figuring out which models will hold value, and SUVs tend to stick around for a long time. These types of vehicles are also helped out by changes in market demand. Buyers are increasingly favoring SUVs, notably smaller compact versions. That high demand, in turn, drives up the resale value. The highest-ranking SUV was the Tesla Model X. KBB estimates that it retains around 66% of its value even after five years.
