How To Determine Your Car’s Resale Value

images-65.jpgIf you’re considering buying a new vehicle this year you need to consider the worth of the car in a few years, when you’re ready to trade it in for another car.  Consider these four factors that determine the resale value of a vehicle.

Supply and demand is a big factor.  Vehicles that have a high volume of production, such as Chevrolet and Ford pickup trucks don’t hold a high resale value because they are so numerous.

Next, brand image is key.  For instance, Toyota, Porsche, and Honda have great images, which is the reason they end up on the high end of the table every year.  Regardless of whether the vehicle deserves it or not, brand name is a huge factor in the resale price of a car.

If there is a high incentive for spending on a new car, the residual value will be lower on a recent model.  Just remember, there is a reason for high incentives.

Also investigate the number of units of a certain model that were sold to rental and commercial fleets.  If there was a great number sold, the resale value will be less.

Look at these factors when buying a new car.  A vehicle is only a good deal if it is worth something when it comes time to trade it in.  In addition, it is also a good idea to purchase an auto warranty and auto road service to protect yourself.

Posted on Thursday, September 3rd, 2009 at 6:48 pm In Road Service  

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