Before You Buy

Choose a car with a historically low depreciation history.

Select a popular, highly regarded model, or a car from a prestigious automaker. Avoid less-well-known makes and offbeat models - or, based on recent trends, brands that may not be around in a few years!

Choose a car from an automaker that doesn’t frequently change bodystyles. If you are set on buying a vehicle that does have frequent style changes, make sure to buy soon after a change.

Select a smaller engine if a larger one is optional on the car you want. Because of increased fuel costs a smaller engine generally adds to a car’s retained value.

Select appropriate features and options for your geographic area. Cars in Southern California or Florida are expected to have air conditioning, for instance. Keep in mind that odd colors such as pink or bright orange generally don’t sell well anywhere.

Find out if the car you’re considering has a “sister” model, a similar car sold as a different brand or model. If possible, choose the one that holds its value better.

Consider buying a slightly used car rather than a brand-new one. Maybe you shouldn’t buy another car at all!

After You’ve Bought

Keep your car longer. Cars typically depreciate the most during the first three years; after five years, depreciation will be minimal or at least occur at a slower rate.

When it comes time to sell your car, don’t trade it in to a dealer. You’ll almost always get a higher price (and thus minimize depreciation) by selling it yourself to a private party.

Keep up the mechanical condition and appearance of your car and save all receipts for maintenance work that you’ve had done on it. Low mileage cream puffs, no matter what make or model, will always have plenty of buyers and will command the highest resale value. See “Maintenance Tips.”

Depreciation Comparison Graph: This graph illustrates how cars with a similar purchase price have vastly different depreciation rates and, therefore, substantially different resale values after five years. However, even though one car appears to be a better value than the other, you should not draw that conclusion until you have examined the remaining ownership cost areas.