Big Bucks Auto™ eNEWSLETTER |
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Monthly Automotive Articles
September 2008
Cars with Good Resale Value – Resale Value Series Part 3
By Buddy Evans, President of Big Bucks Auto™
Car Resale Values Matter Whether You’re in the Market to Buy a New Car or Sell Your Current Ride
After all, cars with good resale value generally make for much smarter buys new, because you’ll get more of your money back when you go to sell your car someday. So whether you’re buying or selling your car, you should be interested in car resale values and the forces that drive them.
So Why Do Some Cars Have Higher Resale Values Than Others?
1. For the most part, car resale values are a product of consumer perceptions
First and foremost, car brands and models that are synonymous with quality and reliability often have very good resale values. Brands that come to mind in this category are Toyota and Honda, among others. These cars are generally perceived to be very reliable, and this helps fuel their strong resale values. Since consumers are willing to pay a bit more for this reliability on the used car market, these cars often have good resale values.
2. Another factor contributing to good car resale values in today’s market is fuel economy
Now, more than ever, astronomically high gas prices are having major impacts on used car resale values. Consumers are looking for cars with good – if not great - fuel economy. Large SUVs and trucks, vehicles which often get less-than-stellar fuel economy, have generally poor resale values as a result.
3. While SUV’s and large trucks are selling poorly due to high gas prices, smaller cars which are perceived to be ‘good on gas’, are exhibiting very high resale values
Again, smaller cars, from makers like Honda, Toyota, Mazda and others come to mind, as they generally get very good gas mileage; a feature consumers are willing to pay a bit more for in today’s market.
4. Still, some exceptions in car resale values exist!
Cars from Hyundai and Kia, although generally perceived to get excellent gas mileage as well, still do not have very high resale values. This could be due to the fact that negative consumer perception of other factors, like construction quality, and overall reliability, outweigh the positive impacts that good fuel economy has on these cars and thus the resale value of these cars is lower.
5. Other consumer perceptions, like perceptions of high-class luxury, also have big impacts on car resale values
Luxury European automobiles and super-luxury cars in particular, have very high resale values. Cars like Porsches, BMWs, and others often demonstrate high resale values as a result. Consumers view these cars as being high quality, high-class, and this is reflected in strong demand on the used market, keeping resale values high. These cars often also have high ratings in safety and durability, further contributing to their good resale values.
6. But wait; there are exceptions to the ‘luxury’ rule as well!
Some luxury cars do not have high resale values, although they may still be of generally high quality. Jaguar and Saab cars often fit into the luxury category, but this is not reflected in their resale values, which are notoriously, lower than many other luxury car brands.
All in all, consumer perceptions and overall public opinion of a car brand and model, in combination with economic factors, like high gas prices, all have major impacts on car resale values.
Are you wondering if your car has a good resale value?
Why not find out! At Big Bucks Auto™, you can get a free appraisal to sell your car today, with no obligation. We are a highly reputable used car buyer; the largest used car buyer in the New York Metro / Tri-State area. With Big Bucks Auto™, you’ll be able to get fast cash for your car, without the hassles of selling privately. So come on in to Big Bucks Auto™ today, and get a free no obligation quote on your used car!
Learn more about why choose us to buy your car and call us today at 1-888-44-BUCKS or 1-888-44-8257
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