Buying a car is always a fun and exciting time. Researching cars, going to visit a dealer, and taking cars out for a test drive are all fun parts of the car buying process. When you’re interested in purchasing a car, you may be focused on the purchase price of the vehicle. What you also should consider is the future value of your vehicle as part of the buying process. Buying a car, next to buying a house, is the second biggest investment decision for most people. Therefore, choosing a car that will hold its value over time is a wise decision. Here are the top car brands that hold their value the longest and why that should be an important factor to consider in your purchase decision.
Standard Car Winner: Toyota
Every year, Edmunds releases a comprehensive list of vehicles that retain their value the longest. The overall winner in the standard car category was Toyota – Toyota is known for offering a wide range of vehicles, from compact cars to large sport utility vehicles. They’re also known for being high-quality cars that require very little maintenance, which is why they retain a higher value over time.
There are a few factors that can determine the future value of a vehicle. First and foremost is how desirable a car is – the more desired a car is, the higher its value. Toyota is one of the most popular car brands in the world, so it’s easy to find someone looking to purchase a used Toyota.
Other factors that determine value are the car’s condition, any needed repairs, and the anticipated overall maintenance costs of the vehicle. Toyota won five top awards from Edmunds in multiple categories. So it’s clear that Toyota is an excellent standard brand to consider when high resale value is included as part of your next vehicle buying decision..
Luxury Car Winner: Porsche
Edmunds also conducted a thorough review of a wide range of luxury car brands and announced Porsche as the overall winner. Porsche is a world-class luxury vehicle that is a popular vehicle option here in Australia. Porsche is an excellent brand no matter what size of car you’re looking for – from small sports cars to large utility vehicles, Porsche has an option for everyone.
When conducting the study, Edmunds used price data, estimated depreciation, as well as overall reliability and maintenance costs for all of these vehicles to rank the top standard and luxury brands. Like Toyota, Porsche is an extremely popular and reliable vehicle brand, which is why they have the top value retention over time.
Understanding Depreciation
As soon as you drive a new vehicle away, it immediately loses its value as it’s no longer a ‘new vehicle.’ Understanding how the value of your car changes over time can help you make a smart buying decision. Depreciation is the value of your vehicle reducing over time. Toyota and Porsche typically have slower depreciation rates than other brands, meaning you can get more for your vehicle when you sell it or trade it in for a new one.
There are things that you can do to slow your car’s depreciation. Regularly taking your car in for scheduled servicing and properly maintaining your vehicle over time can help maximise your car’s value. There are other factors that you can’t control that impact depreciation, such as the brand’s popularity and reputation, how much servicing costs, and the market for used vehicles.
My Next Car Buying Advocacy
As you can see, there’s a lot that goes into purchasing a vehicle – there’s more to consider than just the purchase price of the vehicle. Since cars are a large investment, you should also consider which vehicles will have the most value when it comes time for you to sell your car. We are here to help with all of your car buying needs, so don’t hesitate to contact our team with any questions you have on purchasing the right vehicle for you.
