When it comes to buying a car, a savvy buyer might consider how well their purchase will hold its value over time. The average new car can lose as much as 60% of its value within the first three years – so what makes a vehicle keep its value?
According to Google trend data, searches for “cars that hold value” have risen by 480% in the last month, so the motoring experts at Porsche Atlanta Northeast explain what makes a car hold its value, and reveals five of the best vehicles for value retention.
WHAT HELPS A VEHICLE HOLD ITS VALUE?
- Brand reputation. Brands known for reliability like Porsche, Toyota, and Jeep, produce vehicles that hold value well as they have a solid reputation for longevity, reliability, and minimal repairs.
- Exclusivity. Cars produced in limited numbers, or ones that are limited editions, are more likely to hold their value because they’re exclusive and harder to find.
- Cult following. Dedicated fans, like those of the Jeep Wrangler, means the vehicle remains desirable, and demand stays high, even when used.
- Low maintenance. Cars with low maintenance costs, and those that don’t require frequent repairs and expensive parts, are more appealing in the used market. Often, the cheaper they are to maintain, the better they hold their value.
- Fuel efficiency. Buyers are often looking for cars that are inexpensive to run, so fuel-efficient vehicles are particularly popular in the used market.
- Timeless design. Cars with a classic design are often the most desirable long-term as they won’t look ‘dated’. Iconic designs, like that of the Porsche 911, continue to appeal to buyers after years and years, helping to hold value.
WHAT VEHICLES HOLD THEIR VALUE THE BEST?
PORSCHE 911
The Porsche 911 is a classic sports car, with a timeless design that is instantly recognizable. Many cars undergo radical design changes as they move from generation to generation, but the 911 has remained true to its original silhouette, with the classic sloping rear end and rounded headlights being carefully evolved – not overhauled.
The strong brand legacy and the commitment to building high-quality, precision-engineered vehicles, and the limited production and high demand for certain models like the turbo and GT, contributes to value retention, making the 911 desirable for collectors and enthusiasts.
TOYOTA LAND CRUISER
The Toyota Land Cruiser is one of the most iconic and durable SUVs, which has gained a reputation that few vehicles can match. The combination of legendary durability, and limited production that keeps it in high demand with its global fanbase, make it one of the best vehicles in terms of holding value.
The durability of the Land Cruiser is one of the key factors that makes it so desirable. It’s built with high-quality materials and components that are able to withstand extreme conditions and endure tough environments, making it highly valued by those who needs a dependable vehicle that will last a long time.
JEEP WRANGLER
The Jeep brand is associated with adventure and exploration, and the Wrangler has a cult following of off-road enthusiasts. It was originally developed for military use, and its durability and versatility, along with its iconic and timeless design, make it a perfect choice for buyers who see it as a lifestyle, not just a vehicle.
The Wrangler is one of the most customizable vehicles on the market, with an extensive array of readily available parts for owners to modify nearly every aspect – from wheels and tires, to bumpers, lights, and interior accessories. This flexibility also adds to the value retention, as owners know they can easily repair and upgrade parts as needed.
TOYOTA TACOMA
The Toyota Tacoma is one of the most popular midsize pickup trucks in the world, with reputation for being reliable, low maintenance, and versatile, and has a strong resale value. The Tacoma is known for being able to withstand high mileage with minimal issues – often surpassing 200,000 miles.
Most vehicles lose a large portion of their value within the first three years, but Tacoma’s depreciate at a much slower rate, which translates into a higher resale price later down the line. Toyota’s reputation for building quality vehicles means that buyers can be confident that they’re making a good investment, that will last for years to come.
TESLA MODEL 3
The combination of advanced technology, low maintenance costs, high demand, and strong resale value, makes the Tesla Model 3 one of the best vehicles for value retention in today’s market. The compact, luxury sedan has become a groundbreaking car in the EV market, redefining what buyers expect from an electric car.
The Model 3’s success has created substantial demand in the used market, with many buyers hoping to purchase a Tesla, and lower their carbon footprint, without paying for a new one. The low cost of ownership, brand appeal, and low maintenance requirements make the Model 3 more affordable to own over time, and as the market continues to move towards electric vehicles, it stands out as a high-value option that holds that value well, with buyers having both environmental benefits, and long-term savings.