Now that the demand for used vehicles is historically high, you may be thinking about selling your car or trading it in for a newer one. Perhaps working from home allows you to downsize the number of vehicles you own or high gas prices are forcing you to trade in your truck for a more fuel-efficient compact car.

Regardless of your unique circumstances, it’s important to know not all vehicles are equal when it comes to their resale value. Knowing how much you could potentially earn by parting ways with your car will help you decide if you’re ready to trade it in.

What Is Depreciation?

When you purchase a brand-new vehicle, one thing you must always consider is depreciation. Vehicle depreciation refers to the difference in how much your car was worth when you first bought it and how much it’s worth when you sell it or trade it in. On average, a brand-new vehicle depreciates by 20 percent after the first year of ownership. It’s not uncommon for new cars to lose over 50 percent of their original value within the first five years of their life.

Do All Vehicles Depreciate?

Yes, all new vehicles, regardless of the make and model, depreciate at a rapid rate. However, certain makes and models retain more value than others. If you own a pickup truck or a Jeep, it’s likely your vehicle won’t depreciate as rapidly as a luxury sedan or an electric vehicle (the latter two usually depreciate the most in value over the first five years).

Best Resale Value Vehicles

As of 2022, there are several vehicles projected to maintain their value better than other cars. Whether you’re looking for a compact car, an SUV or a truck, pay special attention to the following makes and models that preserve the most value in their first five years of life.

Cars

When it comes to cars, the least likely to depreciate are Hondas. Specifically, the 2022 Honda Civic and the 2022 Honda Accord, which are estimated to retain 49.8 percent and 42.5 percent of their value respectively over the first five years. Not too far behind is the 2022 Lexus IS with a resale value of 39 percent.

SUVs

The 2022 Toyota 4Runner is the top 2022 SUV in terms of resale value, which currently stands at a whopping 58.6 percent. Not too far behind are the 2022 Subaru Crosstrek (52.3 percent) and the 2022 Kia Telluride (51.9 percent).

Trucks

Are you a truck enthusiast looking to sell your current vehicle for a newer model? Vehicle shoppers looking for a brand-new truck with abundant resale value should consider the following makes and models:

• 2022 Toyota Tundra (70.8 percent)
• 2022 GMC Sierra HD (63 percent)
• 2022 Toyota Tacoma (61.7 percent)
• 2022 Ford Maverick (59.5 percent)

How to Minimize Your Vehicle’s Depreciation

Although vehicle depreciation is inevitable, there are several things you can do to save your car from taking a deep dive in terms of resale value. If you’re looking to purchase a new car, research the resale value of the makes and models you’re most interested in. If possible, choose a vehicle with good resale value to avoid getting hit with a whole lot of unnecessary depreciation.

Another thing you can do is keep your vehicle in good condition. This means taking care of it inside and out. Invest in regular oil changes and other maintenance checkups. Keep your car clean and smoke free. Avoid any unnecessary modifications, such as neon lights or ride height adjustments.

Lastly, try to get the most out of your new vehicle before selling it. Since vehicles typically lose most of their value within the first five years, it makes sense to drive your car way past the five-year mark. Chances are once you’re ready for another car, your current vehicle will be paid off and you’ll have enough money saved for a generous down payment on your next ride. And, if you sell a paid off vehicle, you can put all the proceeds of that sale towards your next vehicle.

Looking to Sell Your Car in Virginia or Maryland? We Make the Process Fast and Simple

Are you in Washington D.C. or Baltimore and are looking to sell your used vehicle or trade it for a new one? At Direct Car Buying, we guarantee an easy and seamless experience. Give us a shot by requesting a non-binding but firm offer on your pre-owned car, SUV or truck.

We also have a rich inventory of pre-owned vehicles, all of which have passed rigorous vehicle inspections.

To learn more, call us today at 877-927-6093.