Every new car loses value the second you drive it off the lot, and the drop comes fast. Carfax data shows new vehicles lose about 10% of their value in the first month alone. On a $50,000 purchase, that’s $5,000 gone before you’ve even hit your first real road trip.
Depreciation hits every car, but not equally. If you want a ride that keeps more of its price tag, American-made models are a smart place to start. Three stand out for holding their value better than many foreign competitors.
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Ford F150
The F-150 keeps its value for a few reasons: parts are easy to find, plenty of people need a truck for work and owners tend to stick with the brand. Contractors and tradespeople rely on the F-150 to get the job done, which keeps a steady stream of buyers in the used market. That demand props up resale prices.
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“It’s hard to find a more iconic American-made vehicle than the F150, a full-sized truck that screams tough independence,” said Melanie Musson, auto industry expert with AutoInsurance.org.
“The F-150 is built to last and, as a result, holds its value. In addition to its merit-based value retention, the F150 holds its value because it’s popular and there’s a strong used-truck market.”
Ford Mustang
The Ford Mustang is the epitome of American legacy. For decades, the Mustang has been a symbol of nostalgia and American heritage, keeping demand high compared with foreign models. Because the Mustang is American-made, parts are widely available. The V8 engine design can also reduce maintenance costs, making it an attractive car for collectors and daily driving.
“Most sports cars depreciate faster than the average car, but the Mustang depreciates more slowly than average,” said Musson. “The Mustang is one of the more affordable sports cars to begin with, and its good reputation makes it highly popular in the used market, which pushes up the used value and helps it hold its value.”
Jeep Wrangler
The Jeep Wrangler outperforms comparable foreign models in resale value. Estimates indicate that the Wrangler retains 70% or more of its value after the first five years. Jeep also has a more loyal customer base than other traditional car manufacturers, which helps preserve the Wrangler’s resale value and market demand.
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“The Wrangler isn’t known for tremendous reliability, yet it retains its value better than other cars made with off-road capabilities,” said Musson. “The Wrangler is wildly popular and, when properly maintained, retains over half its original value after five years.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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Source: autos.yahoo.com
