How Depreciation Affects Resale Value

Depreciation in vehicles is virtually unavoidable. Recognizing this, we wanted to provide you with the good, the bad, and the ugly when it comes to those vehicles that perform well in holding their value - and equally so, those that don't. Most auto research sites have to be careful in what they publish in order to not upset their dealer customers, and with such, they will just show you the good news. We, on the other hand, provide you the entire list, from best to worst, with more than 200 vehicle makes and models ranked semi-annually.

What Causes a Car to Depreciate?

Many factors can influence your car’s value—some you can control, and others are entirely out of your hands. Here are the main culprits behind car depreciation:

• Mileage: The more miles on the odometer, the less your car is worth. Keeping mileage low can help preserve its value. (We’ve got tips on that—stay tuned until the end of this article!)
• Fuel Economy: Cars with better gas mileage are always in demand, especially when fuel prices are high.
• Car Model: Popular models tend to hold their value better because, let’s face it, demand makes it easier to sell.
• Condition: Any damage—inside or out—will take a toll on resale value. Keeping your car in good shape is crucial.
• Car Reputation: Brands known for durability and reliability hold their value longer. Buyers want vehicles they can count on for years to come.

These factors aren’t the whole story (and yes, there’s a pun somewhere in “exhaustive” and “exhaust,” but we’ll leave that for now). Keep these in mind as you navigate the complex world of car depreciation!

How to Slow Down Your Car’s Depreciation

Listen, you can’t stop depreciation—it’s like gravity, always pulling your car’s value down. But here’s the deal: you can fight back and slow that sucker down. Here’s how:

1. Drive Less, Save More

   Mileage is king when it comes to car value. The less you drive, the more your car is worth when it’s time to sell. The average American drives over 11,000 miles a year—don’t be average.

   Combine trips, carpool with that coworker who overshares a little too much, or rent a car for long road trips. Every mile you don’t put on your car is money in your pocket.

2. Keep Your Car in Tip-Top Shape

   Here’s a fact: nobody wants to buy a car that looks like it just survived an apocalypse. Regular maintenance—oil changes, tire rotations, and even a good wash now and then—keeps your car running great and looking even better.

   Follow the schedule in your owner’s manual. Skip it, and you’re not just losing resale value—you’re losing respect. Respect for your car and yourself.

3. Go Used and Stay Smart

   Buying a brand-new car is like buying a shiny ice cube—it melts fast. Used cars, though? That’s where the smart money goes. Someone else takes the depreciation hit, and you get a reliable ride for less.

   Buy a gently used, reliable car with cash. No car loan. No monthly payments. Just you, your car, and the open road. Now that’s freedom.

There you have it—three surefire ways to make your car’s depreciation slow down so much it starts questioning its life choices.