So, you’re ready to buy a new car. There are more options than ever these days, but they all come down to two main categories:
- Buying a car from a private seller that you found online
- Buying a car from a car dealership
Which one should you choose? There are plenty of pros and cons to buying a car online and buying a car at a dealership, meaning the best choice depends on what’s important to you. Here’s a list of the pros and cons of buying a car at a dealership to help you decide whether or not this option could work for you and also high value cars you can buy and sell later for a high price.
Pros and Cons of Buying a Car From a Car Dealership
Pros of Buying a Car at a Car Dealership
- You can view a variety of cars in person, and you can test drive the ones you’re most interested in.
- You can get help with financing your car.
- You’ll have options to protect your purchase, such as warranties.
- If you buy a used car at the dealership, you might be protected by lemon laws, which protects you if your car turns out to be a piece of junk. Not every state has this law on the books, though, so make sure you review your state’s position on lemon laws before buying a used car.
- A dealership might offer you a vehicle history report on used cars you’re interested in, although those reports aren’t always a completely reliable method for learning if the car has been damaged in the past.
- Going to a dealership means you could look into leasing a car instead of buying one. You might also have the option to trade in your current car, helping you knock down the price of the new purchase or lease.
Cons of Buying a Car at a Car Dealership
- You could get stuck paying hidden car dealership fees.
- You might find yourself haggling with a professional salesperson.
- Not all, but some dealerships employ a “bait and switch” — that’s when you call to ask about a car, come in to look, and are told that it’s gone but there are other (often more expensive) models to look at instead.
- The process of buying a car at a dealership can be a long, often multi-day endeavor.
- Many warranties require you to get any work done on the car at the dealership’s service center, some of which tend to get negative reviews.
- If the dealership you go to doesn’t have the exact make and model you want, you could end up driving all around town to find it.
How to Make Sure You End Up With a Good Deal No Matter Where You Go
Trying to close a deal on a new car (or a new-to-you car) can be a lot of pressure. You have an urgent need to replace your car, and the seller needs to move theirs off the lot (or driveway, as the case may sometimes be). Don’t succumb to the pressure just to get the deal done.
This is a purchase you’re going to be living with for years to come. Your auto loan alone could tie you to a car for four to five or even six years. Keep a cool head to ensure the car you’re about to buy is both what you want and what you need. Then get all the details you can about its history if it’s used and do some research on the car’s value, so you’ll understand whether or not you’re getting a fair price.
And if you have to walk away because the deal is starting to seem like a bad one, do it. Sometimes it takes going to another dealership or seller to get the deal you need.
Cars With the Best Resale Value.
When you’re buying a car, you might not want to think about someday needing to sell it. However, you’ll eventually need an upgrade and, when you do, selling your car could net you a higher dollar amount for your next car than a trade-in might.
That’s why car shoppers shouldn’t just think about how to avoid buying a lemon, but also how to buy a car that will sell for a higher price than others. After all, if you plan on selling your car for a new model in a few years, you’re going to want to get as much value out of it as you can.
But how can you do that?
First, Understand How Car Resale Values Are Calculated
Kelley Blue Book has long been the name in understanding how much cars are worth, and Eric Ibara, Director of Residual Value Consulting at Kelley Blue Book, talks about how site calculates the resale value on a car.
According to Ibara, Kelley Blue Book looks at a car’s past to see how its value has held up over the years, then runs a regression model to determine what a new car now will likely sell for in the future. But that’s not the last step. Experienced automotive analysts then review the output of the model to determine if whatever adjustments the model made in the car’s future resale value holds up to what’s happening in the marketplace now.
And the trends they’re finding now can impact the value of your next car purchase. Ibara made note that trucks and SUVs have been topping the list of vehicles with the highest resale value. In fact, nine out of ten of their top ten are trucks or SUVs. In Ibara’s words, “People are just not purchasing cars the way they did even five years ago … as a result, the resale value of SUVs is stronger than cars.”
If you’re debating between a car and truck or SUV, this is something to consider if you know you’ll want to sell within a few years of buying your next vehicle.
That said, this list will take a look at the cars, trucks, SUVs, minivans, and everything in between so you can find out the top model for resale value in whatever class of vehicle is on your list. Here’s what the Kelley Blue Book rank as the top vehicles for resale value in 2018.
1. Subcompact Car: 2018 Honda Fit
For those who need to zip around town in a car that’s just right in size for what they need, the 2018 Honda Fit is an option to consider.
Kelley Blue Book gives this subcompact car a rating of 9.3 out of ten, though consumers on the site give it an 8.6. As for resale value, the site says it can sell at 47.7 percent of its value at three years and 31.6 percent at five.
2. Compact Car: 2018 Subaru Impreza
If you’re looking for a compact car to get you to and from work, kids practices, and everywhere in between, Kelley Blue Book rates the 2018 Subaru Impreza as the best compact cars for resale value.
According to Kelley Blue Book, this car has a resale value of 51.3 percent of its value at three years — and 34.3 percent of its value at five years. The site also gives it a rating of 8.7 out of ten, and consumers on the site rate it at an 8.8 out of ten.
3. Mid-size Car: 2018 Honda Accord
As for mid-size cars, a familiar name pops up on the list. Kelley Blue Book rates this car top for resale value in its class, boasting a 50 percent resale value at three years and 34.5 percent at five.
The site also gives the 2018 Honda Accord a 9.6 out of ten, while consumers on the site give it a 9.4.
4. Full-size Car: 2018 Toyota Avalon
What if you need a little more room in your day-to-day car? Consider the 2018 Toyota Avalon. Kelley Blue Book shows that this full-size car has a 44 percent resale value at three years and 34 percent at five years.
As for ratings, Kelley Blue Book gives it a score of 8.1 out of ten, while consumer reviews on the site give it a score of 8.4.
5. Sporty Compact Car: 2018 Subaru WRX
Not to be left out of the conversation, those who want a little more sport in their daily transport can look to the 2018 Subaru WRX for a car that has high ratings and resale value.
Kelley Blue Book states a resale value of 57.8 percent on the 2018 Subaru WRX at three years — and 46.2 percent at five. Consumer reviews on the site rate this car an even 9 out of ten.
6. Hybrid: 2018 Toyota Avalon Hybrid
Hybrid lovers looking for an option that will give them flexibility both now and later might want to check out the 2018 Toyota Avalon Hybrid.
At three years, this car can sell for 42.3 percent of its value, according to Kelley Blue Book. Sell at five years and you might get 33 percent of its value. This car also has a Kelley Blue Book rating of 8.1 out of ten, while consumers on the site give it an 8.5.
7. Electric Vehicle: 2018 Chevrolet Bolt EV
Want to give up gas for good? Kelley Blue Book rates the 2018 Chevrolet Bolt EV at the top of its class for resale value.
The site says this car can sell at three years for 26.5 percent of its value and 15.5 percent at five years. Ratings are high as well, with Kelley Blue Book giving the 2018 Chevrolet Bolt EV a 9.5 out of ten — and consumers on the site giving it a near-perfect 9.8 out of ten.
8. Subcompact SUV/Crossover: 2018 Honda HR-V
What about crossovers? Kelley Blue Book gives the 2018 Honda HR-V the award for the top resale value of a subcompact SUV or crossover.
According to the site, the 2018 Honda HR-V has a resale value of 52.3 percent at three years and 36.3 percent at five. As for ratings, Kelley Blue Book gives it a 9.3 out of ten and consumers on the site give it an 8.8.
9. Compact SUV/Crossover: 2018 Jeep Wrangler
One of the most recognizable names in outdoorsy cars, the 2018 Jeep Wrangler gets top marks from Kelley Blue Book for its resale value.
The site says that the 2018 Jeep Wrangler has a resale value of 60.3 percent at three years and 50 percent at five, while the consumer reviews on the site score the crossover an 8.7 out of ten.
10. Mid-size SUV/Crossover: 2018 Jeep Wrangler Unlimited
Jeep shows up again for crossovers, with the 2018 Jeep Wrangler Unlimited getting the top score for resale value of a mid-size SUV or crossover.
According to Kelley Blue Book, the 2018 Jeep Wrangler Unlimited has an incredible resale value of 70.1 percent at three years, and a still above-average resale value of 58.1 percent at five years. Consumers on the site give the crossover a score of 8.7, just like the more compact 2018 Jeep Wrangler.
11. Full-Size SUV/Crossover: 2018 Chevrolet Tahoe
Those who need a crossover with a little more heft can look to the 2018 Chevrolet Tahoe for top resale value.
Kelley Blue Book states that this full-size SUV/crossover has a resale value of 55.3 percent at three years and 41.3 percent at five years. Consumers on the site give the 2018 Chevrolet Tahoe an 8.2 out of ten, while the experts on Kelley Blue Book rate it at 9.2.
12. Mid-size Pickup Truck: 2018 Toyota Tacoma
Pickup truck lovers, here’s an option for you. Kelley Blue Book awards the 2018 Toyota Tacoma best mid-size pickup truck for resale value, with its resale value at three years being 69.6 percent. At five years, the truck has a resale value of 61.1 percent.
The site also rates the 2018 Toyota Tacoma at 8.8 out of ten, with consumers on the site giving it a 7.5.
13. Full-size Pickup Truck: 2018 Chevrolet Silverado HD
Those who need to do a little more heavy lifting day-to-day aren’t left without options, as the 2018 Chevrolet Silverado HD comes in as Kelley Blue Book’s top pickup truck for resale value.
The site boasts a whopping 61.8 percent resale value for the truck after three years and a still high 56.4 percent after five.