Consumers Take a Bath on Rapidly Depreciating Trade-ins

The tsunami of pre-owned vehicles flooding dealer lots is great news for those seeking an affordable, low-wear used car, but the previous owners are taking a hit.

More than ever before, owners returning their vehicle for a trade-in are discovering their old car’s value sank faster than their ability to pay it off. New car buyers, take warning.

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No One Wants Your Worthless Small Car, and Its Retained Value Shows It
Is there a tiny pinpoint of light that can stir some meager hope in the heart of the compact and midsize passenger car segment? No, no there isn’t.Even as sticker prices for these vehicles rise and as manufacturers endow them with enough technological goodies to make your mom’s car from yesterday look like a chuckwagon, retained value is dropping as fast as the segments’ market share.Once a driving force, the segment has now become a red-headed stepchild at auction.
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Want Your Vehicle to Retain Its Value? Make Sure It's Big, or Bigger

If you’re looking to get the most money back when you drop your car onto the used market in five years, better get into something large and utilitarian.

Large and midsize trucks and SUVs grab the top five-year resale values in Edmund’s 2016 Retained Value Awards, with conventional and luxury midsize and large cars depreciating the most.

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Used Tesla Values Could Be a Bubble Waiting to Burst

The National Automobile Dealers Association new electric vehicle retention list released last week has a tasty little tidbit in its roundup of value retention rates.

Tesla’s Model S, which topped the 3-year value retention rate list for EVs in the new list, also sported a better value rate for most cars on a similar list released last year for all segments, including mid-size luxury cars. That includes BMW.

But the news may not be all good, all the time.

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Which Car Holds Its Value Best? Here Are The 2013 Resale Champs

We all know that the value of a car crashes the moment we drive it off the dealer lot. Some do more, some less. Edmunds compiled which brands and makes hold their value more than others.

On a brand level the most prudent cars are made by Acura (honorable mention to Lexus and Infiniti), and, for the more rugged types, by Jeep (honorable mention to Ram and Jeep.) However, people choose brands, but buy cars. So here are Edmunds’ “Best Retained Value Awards” by segment.

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Which Car Holds Its Value Best?

If you read, maybe even follow Steve Lang’s advice on car buying, then you know how important and hard it is to fight the dreaded depreciation of your car. The minute you drive it off the dealer’s lot, it has lost a good chunk of its value. Some cars hold their value well, others not so much. Here are the best.

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  • Rochester I'd rather have a slow-as-mud Plymouth Prowler than this thing. At least the Prowler looked cool.
  • Kcflyer Don't understand the appeal of this engine combo at all.
  • Dave M. This and the HHR were GM's "retro" failures. Not sure what they were smoking....
  • Kcflyer Sorry to see it go. The interior design and color options in particular are rare in the industry
  • Wolfwagen Here is my stable. not great not bad I try to do as much as possible. I work for an Aftermarket automotive parts company so I can get most parts at a discount.i try to do as much of my own work as possible. My wife hates that I spend time and money fixing the vehicles but she doesn't want car payments either so...2019 VW Atlas 50K (wife's) Only issues so far were Brakes and normal maintenance.A Bad Cat Converter which was covered and a replacement of the rear bank head gasket which was a manufacturing defect due to improper torquing at the factory. All under warranty2003 Saab 9-5 Arc Wagon (my DD) 116 K picked up used last year. Replaced Struts, brakes, hatch struts, motor mounts, D/S swaybar link, Timing belt, water pump and thermostat Power steering pump Fuel pump, Both Front window regular rollers, Heater core and cabin air filter. Oil and transmission changes. Love the car but Saab/GM packaging is a nightmare.2005 Cadillac Deville (former DD now Son # 1 DD) picked up used 5 years ago with only 47K now 83K Plugs, coils, P/s pump, Water pump, hoses, P/S lines (mechanic job) evap valve, brakes, Front brake calipers and rear brake calipers. Currently has oil pan gasket leak - looking to have a mechanic do that2009 Mini Cooper (Daughters dd)picked up 2 years ago 67K Brakes and thermostat house to clear check engine light2001 Mazda Tribue (Son#2 dd) 106K picked last summer after he severely damaged a 2004 Hyundai accent. Oil changes