When you are buying a car, it’s good to factor in the value of that vehicle when you might want to sell it or refinance the car loan. Buying a car that retains its value well can help you avoid getting “underwater” in a car loan – having negative equity in the car.
As we’ve talked about before, there are many ways to assess the value of your car, so we’re looking at two different lists of resale value. Our main list is the Kelley Blue Book’s annual Best Resale Value Awards, which looks at the ten 2022 cars projected to retain their value over the next five years. This is the list that is most valuable for making purchasing decisions now. However, we’re also going to reference a list by CarEdge.com, a vehicle broker website that maintains a robust depreciation calculator. Cars that appear on both lists are more likely to retain their value. Kelley Blue Book estimates that the average car is expected to retain only 40% of its value after 5 years, so that makes all of these cars significantly better than the average.
The Gladiator is Jeep’s pickup truck variant. With fun Jeep styling and numerous configuration options, this truck is guaranteed to be a winner on the used market for people who are looking for a 4X4 built for trails, but still practical for hauling stuff around town. Expected to retain 56.1% of its value.
The Ranger is Ford’s midsize pickup. While not as popular as the F-series, this is another pickup built for off-roading. A powerful engine with high horsepower and best-in-class gas torque also make this an appealing truck for resale, expected to retain 56.7% of its value.
The F-150 is the best-selling truck in the US, and it’s relatively affordable, starting at around $30,000. Extensive options let you customize the car for various purposes, from an on-site remote office to an off-road towing vehicle. Plus, it’s expected to retain a nice 57.3% of its value after five years, according to Kelley Blue Book. CarEdge is even more generous to the F-150, estimating it will retain a whopping 71.5% of its value after five years, earning it a rating of third on their list.
The Model X is listed as a “luxury electric vehicle.” It’s Tesla’s attempt at a crossover, and it’s a bit of a risky pick for Kelley Blue Book. First generation EVs have notoriously bad resale values, but with about 350 miles of range, the Tesla Model X won’t fall prey to the cycle of always-improving battery issues that plague, say, the Nissan Leaf. While the range isn’t the same as a gasoline car, it doesn’t take that many $100-fill ups to make people see the value of having an EV crossover. It’s expected to retain 57.6% of its value.
Toyota’s likeable, playful, and oh-so-dependable SUV, the Toyota 4Runner is a pretty common appearance on best-resale value lists. Even lists with entirely different methodologies tend to list it near the top. CarEdge is a little down on, it ranking it 43rd, even though Kelley estimates the resale value at 58.6%, compared to their 63.0%.
The name Corvette goes a long way toward helping this car achieve its remarkable resale value of 59.5%. It’s a powerful, agile sports car, but it still works as a reasonable everyday car because it has decent cargo space. Yeah, you won’t be hauling as much gear as in a pickup, and you don’t even have a “froot” like a Tesla, but you can still make reasonable trips to the grocery store when you need to.
The Maverick is Ford’s compact pickup option. It is super-affordable, starting at under $20,000 MSRP, though good luck finding one at that price. As with all Fords, you have a lot of options, and you can choose between getting an unheard-of 42 mpg with a hybrid pickup, or go with the 4,000 pound tow package. All this, and it retains up to 59.5% of its resale value after five years.
Toyota’s midsize pickup, the Tacoma is another perpetual favorite on the best resale value lists. Great reliability and fun offroad capabilities make this an attractive commodity on the resale market. Kelley estimates it will retain 61.7% of its value. CarEdge is gaga about the Tacoma, rating it #1 with an astounding 78.6% estimated resale value. A resale value like that would make it almost impossible to get negative equity if you’re making your car payments.
Kelley Blue Book estimates this heavy-duty pickup will retain an outstanding 63.0% of its value after five years. CarEdge largely agrees, putting the different Sierra models at 57.0% to 63.8% resale value after 5 years. This truck is built as a working vehicle, with heavy-duty drive shaft and rear axle for towing. The brakes and steering are also designed to handle towing heavy loads.
Tundra is Toyota’s full size pickup truck. It is built tough, but light, and it has a variety of options, including a hybrid powertrain. The redesigned model is expected to keep its value long-term with a remarkable 70.8% estimated resale value. CarEdge also rates this model well, giving it a 70.4% resale value after five years, with an overall rank of 7th.
These cars will give you excellent long-term value, which makes it easy to refinance an auto loan. However, there are many cars that don’t retain as much value, making it a challenge to get refinancing.
Don’t give up. Let one of iLending’s personal loan consultants help you find refinancing options that can work for you, even if you are underwater with your current car loan. We have access to lenders around the country who focus on different types of loans, including some that can help you get financing in that challenging situation. Our customers save an average of $145 a month. Read their inspiring savings stories to see how car loan refinancing could make a difference for you.
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