There are many things to consider when purchasing a new vehicle and one of them is understanding the importance of resale value. At Morris Group Automotive Dealerships, we want you to have the knowledge of depreciation and what it means for the value of your vehicle so you feel empowered when starting your vehicle shopping journey.
What is Depreciation & Resale Value?
Depreciation is the process by which an asset, in this case your vehicle loses value. Resale Value is the amount your vehicle is expected to sell for at some point in the future.
One of the largest, and often most overlooked costs associated with vehicle ownership is the cost of depreciation. The most important part of purchasing a vehicle is knowing its projected depreciation three, four and five years down the road. When selling a vehicle, owners are sometimes upset to learn just how much their vehicle has depreciated during their ownership period. According to Canadian automotive experts, an average new vehicle only retains 35 percent of its original value after five years.
When you purchase a vehicle that has a good resale value, you are able to maximize the amount you get back at trade-in.
PRO TIP: A vehicle with a good resale value retains at least 40-50% of its original retail price after 5 years.
To help offset the cost of depreciation, one of your goals should be to purchase a vehicle with the highest resale values. Below are the top vehicles in Canada with the best resale values:
The next time you shop for a new vehicle, consider the long-term and look at how much value your vehicle is really giving you.
Looking to trade-in your vehicle?
At Morris Group Automotive Dealerships we have created an industry leading Sell Your Vehicle Program. Because of our broad customer base and extensive dealership network, we are able to pay more for your vehicle.
Contact the Morris Group Automotive Dealership nearest you, we are here to help.