Smart Car Buyers Focus On This!

While reliability and comfort are crucial factors, there's also another aspect that you want to consider, as it could be financially helpful (or a nightmare!)

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Four Wheel Trends Automotive Newsletter
Issue #142

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Today, we discuss the one aspect you should consider when buying a new car. It could help you a lot in the long run. 

Can you guess what it is?

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In The Know

Smart Car Buyers Focus On This!

It's not just a nicety; it can become your safety net, and it's something that not many consider. I must confess that I was one of them.

However, now, I'm more focused on learning about it. We're talking about resale value and why it's becoming increasingly important, given that car prices are setting new records. 

(Although July was a steady month, as you can read here.)

Your car's price could now become a dealbreaker. So, which automakers and models offer the best resale value? While there are some surprises, there are also some expected answers. 

To many, it may be no surprise that Toyota once again ranks first in resale value, at least according to CarEdge. The Japanese automaker ranks first, with an average value retention rate of 63.60% over five years. 

You can check out the rest of the top ten here. 

Toyota (and Lexus) retain their value thanks to their reliability and quality. However, that's not to say that all Toyota models perform equally. 

The company averages 63.6%. However, the B4Zx has a retention of "only" 53.5% over five years. We say "only" because this value is higher than the average of nine other brands. 

Here's the list of most Toyota models in America, along with their depreciation rates. 

BTW, the Tacoma is not only cool. It holds an impressive 73.7%, making it a solid purchase. 

We shouldn't be surprised by Toyota. However, upon analyzing the list, we found some surprises. Can you guess the second-place brand?

It's Ram, and no, we didn't expect it! According to this analysis, the reason why Ram holds so much value is that they are, after all, work trucks.

In fact, if the study had only considered the heavy-duty versions, the value would've been much higher. 

This demonstrates that the more practical the vehicle, the lower its depreciation will be. The top five are evidence of this: Toyota, Ram, Honda, Mazda, and Subaru. 

Another aspect that we found very interesting is that brands only tell one side of the story. While some brands have an excellent average, their specific models might not behave the same way

This list showcases the ten vehicles with the least depreciation for 2025. The first one is no surprise, but there are many Chevy models. 

If we analyze the list of models, rather than car brands, we encounter some interesting results. Here's the entire list from iSeeCars, but there are some noticeable appearances, such as Porsche leading the way. 

Ultimately, sports cars, trucks, and hybrids hold their value well. EVs don't, and that's not a shocker (pun intended).

This should not come as a surprise, as sports cars are rarer and more desirable to affluent buyers, trucks are highly coveted for their practicality, and hybrids are becoming increasingly popular with each passing day.

Last week, we discussed how the hybrid is becoming extremely popular. 

However, that's not the most surprising trait. Here's something you might not expect: color influences depreciation. 

A study from iSeeCars reveals that yellow cars depreciate by only 24% over three years—much less than the average 31%. Orange and green also perform well.

Here's more on how the colors affect the car's resale value. 

In short: go bold! 

So, with all that said, who are the biggest losers?

Besides EVs, there's one surprise. While trucks are popular, some models can depreciate significantly.

This list includes the top five worst depreciating trucks, and the models are surprising. 

The Honda Ridgeline might lose up to 42.4% of its value, yet Honda ranks high in resale value. Long-term value isn't guaranteed—even for rugged rigs —but it highlights the importance of studying depreciation further. 

Is it something you consider? Let us know!