December 6, 2022

Top 3 Car Brands for Residual Value

It’s impossible to avoid depreciation in vehicles, but some hold their value better than others. Many car buyers try to avoid depreciation by shopping for used cars, but if a car has a high residual value, you might have to pay a little more, even for a used model. Take a look at some of the car brands that hold their residual value the best.

What Is Residual Value and Why Is It Important?

Residual value is the value of a car at the end of a lease term. It is also the amount you can purchase a car for at the end of a lease deal. Why is residual value important? Your vehicle’s value matters most when it comes to trade-in time. The higher the residual value, the more you can get when you go to trade it in. Market values affect resale value because prices fluctuate with demand, so the residual value may also change with demand.

Subaru

Subaru models have a reputation for doing a little of everything, including holding their value. The lineup has models for every driver, including the Outback and Crosstrek for people looking for adventure and the Legacy and Impreza for the more practical consumer. Regardless of the model, you can count on a Subaru to keep 57% of its value for five years.

Subaru is also a top performer in terms of long-term value. When you also take into consideration the safety records and reputation for reliability, Subaru is a good choice whether you buy new or used.

Ford

Ford is one of the original automakers, and over the years, the company has perfected a lineup of vehicles that will retain their value. The F-150 pickup truck and the Mustang are two of the top models in terms of performance and holding their value.

The F-150 is not only one of the top-selling pickup trucks on the market; it will only depreciate about 24% after five years. When shopping for used cars, buying a used Ford F-150 that’s just two years old can save you money, but you’ll still get a truck with a high residual value, and you can still get a lot of the latest features and technology.

The iconic Ford Mustang also does a great job of holding its value. It will only depreciate about 24% over the first five years.

Jeep

Jeep vehicles are legends on and off the road, and the Wrangler holds its value more than any other SUV on the market. If you buy a new Wrangler, you can count on it keeping its value for many years, and shoppers looking for used cars are willing to pay for used models.

Other Jeep models in the lineup also have excellent residual value. From the luxurious Grand Cherokee to the compact Renegade, you can count on these to hang on to up to 58 percent of their residual value for five years or longer.

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