Why Do Hondas Have The Best Resale Value?
Most enthusiasts will tell you that Honda vehicles have a great reputation for retaining more of their original value than most other brands. And for many car shoppers, protecting their investment with a high resale value is a big part of the final decision on which vehicle to ultimately purchase.
You've probably heard that your new car starts depreciating as soon as you drive it off the lot. While that might be a bit of an exaggeration, according to Edmunds.com, the average new car loses nearly 20% of it's initial value within the first year of ownership and more than 60% after five years.
1. Low Depreciation Value
However, certain vehicles like the Honda Civic and Accord hold onto their resale value and only depreciate by an average of 35%. If you're the kind of driver who trades their vehicle in every few years for the latest model, this can be an easy way to get the most car for your money, which also means less money out of pocket on the next model. And if you're the kind of driver who only purchases used vehicles or plans to hold on to their car for a long time, this information can tell you quite a bit about a brand's reputation for durability and safety.
2. Brand Reputation
Brand reputation is arguably the biggest factors in resale value. While many luxury and exotic cars quickly lose value due to high maintenance costs and frequent repairs as they age, Honda cars have a reputation for reliability and high build quality. There are numerous examples of high-mileage Honda engines found all over the country, many with nothing more in maintenance than simple oil and filter changes. Even the interiors of Honda cars which can take abuse from daily driving hold up very well compared to the competition.
3. Low Cost Repairs & Maintenance
The low cost of maintenance and repairs also contributes heavily to the high residual value for Honda vehicles. It's no secret that Honda vehicles are common on many roads across the country, but this has the benefit of making replacement parts easy to find and relatively inexpensive. And with many Honda models built right here in the United States, you won't have to order parts from overseas to repair your car if something ever breaks.
4. Good Fuel Economy
Fuel economy ratings, unlike in years past with cheap gas prices, are also becoming an ever-increasing part of how a vehicle holds its resale value. In today's modern world of high costs at the pump, miles per gallon are more important than ever to a prospective buyer. This is especially true for small cars like the Civic and family vehicles like the Accord and Odyssey minivan. For decades, Honda has made fuel efficiency a top priority in their development on new vehicles. Ever since the first generation of the Civic in the 1970s was equipped with a CVCC engine, Honda vehicles have developed a reputation and a highly cost-effective way to get around.
Drivers all around the country for decades have known that there's no better car for your money than Honda when you want to get a lot without paying a lot.