Know The Value Of Your Vehicle
Posted on August 14, 2020
Everyone knows cars depreciate over time but most of us don't give it much thought. People might say a certain model loses thousands of dollars when it's driven off a dealer lot, but is that actually true?
Anyone who owns a vehicle or is looking to buy one needs to understand this topic thoroughly, because car resale value is a serious issue. In the end, being aware of automobile depreciation and how it works is quite useful.
Book Value
There are several resources that show the value of different vehicles, such as Canadian Black Book. What you see is the average a car model is worth, based on age, trim level and mileage, without taking condition into consideration. This is what's called "book value."
Actual Value
Several factors negatively affect a vehicle's value. As you use your ride, it's no longer in the same condition as it was when it sat on the dealer's lot. There might be some dings from when a grocery cart accidentally ran into the door, chips in the paint from rocks on the road, or a little hole forming in the driver's seat upholstery.
Any damage or wear can really nibble away at the value of a vehicle. In fact, this is a big factor in determining the value of a car. Anyone shopping for a vehicle will want it to be in good condition, or as free from damage and wear as possible. Taking these factors into account is how the actual value of a vehicle is calculated, which is going to be a different number than the book value.
Other Factors
There are plenty of other factors which can help or hurt a vehicle's value. Older cars don't have all the latest technologies, designs and features everyone wants. Certain engines or options are more desirable, while some models have a history of depreciating less than others. Shifts in the market mean a vehicle once worth a certain amount of money can suddenly be worth considerably less.
The Costs
Vehicle depreciation is a fact of life. While everyone wants to invest their money in things that increase in value, vehicles usually don't. You do get another type of value out of your car, because it's your method for getting around.
Anyone can take measures to avoid a big surprise when it comes to how much a vehicle loses in value. Doing some homework is well worth the effort. While there might not be too much info for a new model, a person can look at its history to get a pretty good feel for any trends. Resources like Canadian Black Book are available and invaluable, so put them to good use.
Vehicles That Hold Their Value Well
Since not every car is equal in the marketplace, it's good to know which ones retain more of their value. Several have great track records of being solid investments, making them completely worth considering.
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Dodge Challenger: Few vehicle nameplates evoke this level of emotion. The Challenger looks great, performs incredibly well, and has a comfortable interior. These factors and more make the modern-day muscle car highly sought-after.
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GMC Canyon: People who need a tough truck but don't want to deal with handling a full-size model on a daily basis find this to be a great option. As a midsize pickup, the Canyon can fit in some fairly tight spots, but still has a bed large enough to take on some big jobs.
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GMC Sierra: This full-size pickup boasts excellent capability, an attractive design and plenty of onboard amenities. Buyers can get it in a number of cab and bed configurations, depending on their needs and preferences. Thanks to the limited numbers of the Sierra on the market, it's able to retain quite a bit of value.
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Jeep Wrangler: The Wrangler is constantly named as one of the best vehicles for retaining its value, including appearing in the top ten list for 2016 models on Kelley Blue Book's KBB.com. There's a lot to love about the Wrangler, including its rugged looks and amazing trail capabilities, the ability to enjoy an open-air experience and the ability to take on snow-packed roads without much worry. The vehicle also has a storied past, which only helps boost its overall image; this translates into better value retention.
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Ram 3500: This heavy-duty pickup is able to tackle all kinds of huge jobs, and looks good doing it. When it comes to the competition, the Ram 3500 can tow more weight, increasing its appeal further. Onboard conveniences such as the Uconnect infotainment centre make the truck a well-rounded offering.
Visit the Value Your Trade page on our website and find out what your current vehicle is worth in trade on a new Chrysler, Jeep, Dodge or Ram!