5 Signs a New Car Will Have a High Resale Value, According to Experts
When you buy a new car, by the time you drive it home it’s lost value. In fact, according to Kelley Blue Book (KBB), most new cars lose 20% of their value in the first year. Ouch. And by year five, many cars have lost around 60% of their original value. Some do a lot better, of course — KBB predicts much better resale values for models such as the Ford Bronco, Toyota Prius, Subaru Crosstrek and others.
Check Out: 10 New Cars To Avoid Buying in 2024
Read More: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
So what are the key things to look for in a new car that will help it retain its value, even when it’s lost its appeal to you? Here are five things to check.
A Good Reputation for Reliability
Anyone who’s ever bought a used car knows that the biggest fear is buying a car with mechanical or electrical problems. So, brands and models with good reputations for reliability hold their values best.
“Vehicles from brands known for reliability and low maintenance costs, such as Lexus or Subaru, generally have higher resale values,” said Rob Dillan, founder of EVhype, an electric vehicle information site. Additionally, he said, models like Toyota Camry and Honda Accord are renowned for their durability and reliability and are always favorites on the secondhand market.
Explore More: 8 Hybrid Cars That Lose Their Value the Fastest
Fuel Efficiency
According to AAA, gas prices averaged $3.59 a gallon nationally — and over $5 in some states — as of late May. Fuel efficiency is on most used car buyers’ minds, and experts agree this fact likely won’t change.
“Cars that offer excellent gas mileage often hold their value better. As of 2023, vehicles with higher fuel efficiency ratings tend to depreciate slower than those with poor fuel economy,” said Dillan.
A Normal Exterior Color
We’ve all seen the bright pink or flashy gold custom paint job drive by. And while those might appeal to some, it’s a select few. So, if you want to maximize your resale value and potential pool of buyers, it’s best to stick to safe, popular colors.
“Neutral colors such as black, white and silver are traditionally favored in the resale market,” said Dillan. And while that’s probably true for attracting the most potential buyers, a 2022 study by used car search site iseecars.com found some surprising data. According to the study, yellow cars held their value best after three years, with a mere 13.5% depreciation, compared to the average of 22.5% for all colors. Yellow was followed by beige, orange and green. Go figure.
Modern Safety Features
Safety is a big deal for many used car buyers, especially those with families and young kids, said John Lin, co-founder of JB Motor Works in Philadelphia. “Vehicles with top marks for crash tests and safety tech stay sought-after,” he said.
Dillan agreed, adding that modern safety features and digital enhancements such as Advanced Driver Assistance Systems (ADAS), which use cameras, sensors and software to give drivers safety information, can also increase a vehicle’s resale value.
The Latest Tech
We live in a world with smartphones, streaming and AI, so is it any wonder that the modern used car buyer wants the latest tech in their cars too? So, even though the tech in your new car will not be state-of-the-art when you go to sell it, the best you can do is try to find the best tech when you purchase your new vehicle, said Gretchen Seidel, automotive expert at Seidel & Co.
“When [car manufacturers] keep up with technology, their vehicles hold resale value and will continue to attract buyers after a few years,” she said.
How To Help Ensure Your Car’s Resale Value
While changing the color or adding high-tech gadgets to your car might not be feasible, there are some things you can do to boost its resale value. Here are three tips from the experts.
Keep the mileage down: You bought a car to drive it, not park it, but experts agreed that the lower the mileage, the better off you’ll be on the resale market. “A vehicle with an average of 6,000 to 8,000 miles per year is deemed favorable in the resale market,” said Dillan.
Perform regular maintenance: Convincing buyers they are not buying your car problems is a big deal. For that, proof of regular maintenance is gold. “If you are maintaining the vehicle with service visits and regular detailing, keep those receipts,” said Seidel. “The more comprehensive the records, the higher the resale value, especially with a luxury vehicle where maintenance is normally more expensive.”
Keep it clean and covered: The elements are brutal on cars, so in addition to taking care of the engine and electronics, Lin said to keep up on the exterior maintenance. It doesn’t hurt to keep records of detailing and keep it in a garage or covered parking if you can.
More From GOBankingRates
In Less Than a Decade, You Won't Be Able To Afford Homes in These 20 Arizona ZIP Codes
These 10 Used Cars Will Last Longer Than an Average New Vehicle
Trying to Build Your Savings? Make Sure Your Account Does These 6 Things
This article originally appeared on GOBankingRates.com: 5 Signs a New Car Will Have a High Resale Value, According to Experts