How to Choose a Vehicle That Will Hold Its Value

Justin S
Created by: Jul 29, 2026 | Modified by: Jul 29, 2026

Buying a car is one of the biggest purchases most people make, yet many shoppers typically do not take how well the vehicle will hold value over time under consideration. Most car buyers tend to focus almost entirely on the monthly payment. It is understandable dealerships advertise low financing rates and affordable payments far more often than they talk about depreciation. But what many buyers don't realize is that the amount a vehicle loses in value over time can easily cost more than the interest on the loan.

The good news is that depreciation isn't random. Certain vehicles consistently retain their value far better than others and understanding why can save you thousands of dollars when it's time to buy, sell or trade in your vehicle.

Depreciation Starts the Moment You Drive Away from the Dealer Lot

Every new vehicle loses value but not all vehicles, lose it at the same rate. Some models may retain well over half of their original value after a few years, while others can lose more than half of their value in just a few years.

The difference often comes down to one simple principle revolving around supply and demand. Vehicles that remain desirable in the used market naturally command higher resale prices.

One of the biggest mistakes buyers make is purchasing a vehicle based the solely on latest features, tech, attractive style and purchase incentives. The better question is whether the vehicle will be as appealing when it is time to sell it. Before buying a car, it is important to consider if buyers will still want that vehicle five years from now.

Spotting a vehicle with good reliability is not difficult; it just takes a bit of research. Vehicles that typically maintain strong resale value often share several characteristics:

•    A reputation for reliability – Many models from popular brands like Toyota, Honda, Mazda and Subaru have a stellar reputation for reliability. However, these Japanese brands are not the only car companies that can make reliable cars. While Japanese cars tend to lead the pack when it comes to reliability and lower maintenance costs, you can still find dependable models from most manufacturers if you research their individual long-term reliability and maintenance history.

•    Reasonable maintenance costs – Reasonable maintenance usually comes with a vehicle without complex systems requiring frequent repairs, calibration, programming and service. While it is easy to be enticed by the latest and greatest tech features, keep in mind those same features may drive up maintenance costs after the vehicle is out of warranty. 

•    Good fuel economy – Fuel prices are on the rise, so it is only natural to see used car buyers gravitating towards models with good Miles Per Gallon (MPG) ratings. Reliable hybrids from brands like Toyota are very desirable and tend to sell for a premium.   

•    Consumer demand – Consumer demands change with the times. While fuel-efficient vehicles may be more desirable during times when gas prices are higher, larger family SUVs and pickup trucks tend to do better when gas is cheaper. 

•    Parts broadly available – No matter how well the vehicle is built, it will eventually need to have certain parts replaced. Having access to readily available replacement parts can make a significant difference. It could mean having your vehicle back in a day or two instead of waiting weeks or even months for backordered parts while paying for a rental car and other unexpected travel expenses.

•    Proven drivetrains – Historically cars that use drivetrains known for their reliability and performance tend to be more desirable. Some engines like the Toyota derived 2JZ Inline 6 cylinder have become so legendary that many car enthusiasts buy cars with that specific engine just for the purpose of harnessing the engine to be used on another vehicle. 

Long-term dependability creates confidence, driving up prices

Nothing hurts a car’s resale value faster than a reputation for expensive repairs.

Before purchasing any vehicle, spend time researching owner experiences after the warranty expires. While there is no guarantee that everyone that purchases that specific make and model vehicle will experience the same type of faults and failures some issues may be more common amongst certain models. A vehicle that is known to develop transmission failures, engine problems, or electrical issues at 70,000 to 100,000 miles will usually see weaker resale value because the market desirability adjusts based on possible increased future ownership costs. 

Things to avoid when shopping for a new car

Don’t buy the first model year - Generally it is wise to avoid buying the first model year from almost any brand, even the ones known for making reliable vehicles like Toyota, Honda, Acura, Subaru, Lexus, Infiniti and Mazda. The issue with almost all new or redesigned models is the fact that the vehicles feature new engines, transmissions, electronics and software that do not have a proven record of performance. While many perform well, first-year models are statistically more likely to experience unexpected issues that manufacturers correct in later production years. Waiting one or two years after a major redesign allows manufacturers time to address early customer-reported problems. 

Don’t overpay for features with minimal market value - Another common mistake made by new car buyers is overpaying for features or options that do not add any value to the vehicle on the used car market. It's easy to be tempted by premium packages that add thousands of dollars to the purchase price. Expensive appearance packages, oversized wheels, premium audio systems, and cosmetic upgrades often add far less value on the used market than they cost when new.

However, there are some widely desired options such as advanced safety features, heated seats or four-wheel drive, especially in snowy climates that may improve resale value. Knowing which option is more likely to make the car more desirable to its future buyer is key. If you're buying with resale in mind, focus on features that appeal to the largest number of future buyers.

Choose Practical Colors - Color has a greater influence on resale than many people realize. Neutral colors such as: white, black, silver, gray tend to appeal to a wider audience and may help sell the vehicle a bit faster. 

Think Twice Before Customizing Your Vehicle - Many owners personalize their vehicles with lift kits, lowered suspensions, aftermarket wheels, performance exhaust systems, or engine modifications. While these upgrades may reflect personal taste, they rarely increase resale value. In fact, they often reduce it. Most used-car buyers prefer vehicles that remain close to factory condition because they provide greater confidence that the vehicle hasn't been abused or altered in ways that could affect reliability.

Perform Regular Maintenance - A well-maintained vehicle is almost always worth more than a neglected one. It helps with all maintenance records so you can show proof that vital services such as oil changes, transmission service, brake work, tire rotation, coolant system maintenance and major repairs were performed in a timely matter by a reputable shop or technician. 

Consider Other Ownership Costs

Holding value isn't only about what a vehicle sells for in the future. The cost of ownership includes fuel, insurance, maintenance, repairs, registration and depreciation. Sometimes a vehicle with a slightly lower resale value can still cost less to own overall because it's inexpensive to insure, easy to maintain, and delivers excellent fuel economy. The smartest purchase balances all of these factors rather than focusing on any single one.

The Bottom Line

The vehicles that hold their value best usually aren't the flashiest or the most heavily advertised. They earn their reputation over time through reliability, durability, and consistent demand in the used market. While no car is immune to depreciation, choosing a model with a proven track record, maintaining it carefully, and avoiding unnecessary modifications can significantly reduce the amount of value it loses over the years.