We all know that cars are not investments. As a matter of fact, they are probably the worst financial investments we can ever make given the dollar amount associated with buying a new car. That said, we all need to get around, so we have to live with depreciation. There are ways however to ensure that our vehicle keeps its value over time.
Here are a few tips to do just that, and it starts when we are buying our new vehicle.
Equipment and color
Resale value is all about how popular a car is for others. If you buy a vehicle that other people will buy, then you will get better resale value. So with that in mind, avoid flashy colors, and putting too much or too little equipment in a vehicle. Opt for the middle-of-the-line version or trim, and silver, black or white, the most popular colors, are the ones you should be aiming for.
Rebates and promotions
We all like to save money when buying a new car. However, know that what you save at the beginning will probably be lost when it comes time to resale your vehicle. If an automaker is offering tons of rebates, it’s probably because they have trouble selling their new inventory. You probably will not have better luck when you try to sell your vehicle.
Make sure you buy a vehicle that is known to be reliable. If a vehicle has a poor reliability record, then it will not do as well on the pre-owned market. Check as many studies as you can, and maybe have a look at what is being said on various owner websites.
Thank you to Erin Park Toyota for their help with this article.