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Toyota Has Highest Resale Value

Nov 20, 2013

For the third year in a row, Toyota has been named the brand with the highest residual value by Kelly Blue Book. A high resale value is beneficial to customers for several reasons. First, the car will be worth more than another car when the customer goes to trade it in for a newer car. This is the same as putting more money down, and reducing the monthly payment on the new car, which will help with that monthly budget. On a related note, if you want to trade-in or sell this car before the loan is paid off, you are more likely to be in a positive equity situation early in the loan than you would be with a car that does not hold value as well. Because a higher-resale value car does not depreciate as quickly as a lower-resale value, you have positive equity in the car faster. This reduces your risk of ending up underwater by giving you the option of trading the car back in, satisying the loan, and putting the differnce towards a new cdar (or in your pocket).

So far, we have only looked at the advantages of high-resale value cars when you purchase a car, but the same is also true with leasing. With a car lease, you pay to use a car, not to own a car. This is an important distinction, because part of the lease calculation is based on the car’s depreciation over the life of the lease contract. If all else is equal, a car with a higher resale value will have a lower monthly lease payment than a car with a lower resale value. This is true because the higher-resale value car does not depreciate as quickly, so you pay the leasing company less in depreciation.

So regardless of whether you are buying a car (cash or finance) or leasing a car, a high resale value works in your favor. And because Toyota has the highest resale values out there, you should stop by Irwin Toyota today to buy or lease a new Toyota, or buy a Toyota certified pre-owned Toyota!