As our own Matthew Guy has marvelously demonstrated recently, it’s widely known a new-car purchase’s best value can often be found in the base-level trim. Rarely is a vehicle improved in proportion to the cost of additional options. Nor is the money spent on additional options or higher trim levels recovered in resale as secondhand customers are reluctant to pay more money for bells and whistles because, quite often, they’re obsolete by the time the car sells the second time around.
If we take these truths to an obvious conclusion, it can be said that the higher the trim level, the worse the resale value — and in my years of experience working for Autotrader, I can tell you that’s true. Many of the low-end pricing tools used by dealers to determine used car values often don’t even take trim into account.
Is it any wonder then that General Motors’ and Ford’s top trim levels have wretched resale values?
No, I’m not talking about “LTZ” or “Titanium.” I’m talking about Cadillac and Lincoln.