What you need to know about the future value of your new carBy Kijiji Autos
Your car won’t always be new, but it will always have value. It’s up to you to make the most of it!
Buying a new car requires some planning and a substantial amount of money. But you must also remember that in addition to buying a means of transportation you’re acquiring an object of great value for which you could receive serious cash at the time of resale.
The resale value should be one of your considerations when you select a new vehicle. You have to understand that if you pay $20,000 at the time of purchase, there’s a good chance that when you want to buy a new model in four years you’ll receive about $9,000 from the resale of your used vehicle. That’s the average market value of a used car of this age in good general condition.
But it’s not a given — far from it — and calculating a vehicle’s resale value is not an exact science. Nonetheless, it must be taken into account when you buy the car, especially if you know you don’t want to keep it for a full decade.
The resale value of a used car is determined by several factors. One of them is depreciation, which is calculated by specialized firms. It’s a good indicator, but other considerations also influence the vehicle’s new price, including maintenance, mileage, cleanliness and the popularity of the model.
If you’re a member of an automobile association like CAA, the organization will be able to provide you with a projected value based purely on objective factors by using your Vehicle Identification Number (VIN), also known as the serial number. The VIN can be found on the windshield or inside the driver’s door. You’ll be provided with the price you can expect from a dealer, based strictly on the depreciation projections of the manufacturer.
In other words, it will give you some idea, but nothing specific.
There are also many reports available online that will give you an estimate of the value, depending on the model, year and version of your vehicle. You can also access tools created by national consumer advocacy organizations, such as the Automobile Protection Association (APA), which conduct their own assessments each year. But they’ll never give you a precise figure.
Browsing through the pages of sites such as Kijiji will help you too. By comparing your car to similar models from a few years ago, you’ll have an approximate idea of its price on the resale market, which can act as a guideline.
Why worry about resale value?
You may be thinking, why fret about resale value? I don’t plan to change cars right away, and it doesn’t affect me right now. But in fact, the price set for your vehicle in the used-car market can have an immediate impact.
Did you know, for example, that your insurer will set your premium according to resale value as well as risk factors? Also, if you opt only for replacement value, the amount you receive in the event of an accident is based on average resale values.
Another interesting fact: many insurance company analysts use sites such as Kijiji Autos to establish average vehicle values before making a payout because it helps them evaluate the real market.
Remember, knowledge is power. If you have your eye on a model, learn what you can about its future resale value before you sign the dotted line.
Easily find your next ride on Kijiji AutosSearch now
How to buy your next car online in Canada
As manufacturers and dealers recognize that the global pandemic is a long-term reality, the auto industry is rolling out more services to buy a car online in Canada. From the comfort of your own home, you can easily browse the latest models, apply for financing, make a purchase and get your brand...
10 popular SUVs and crossovers in Canada
There's no doubt that Canadians navigate a wide variety of weather and lifestyle conditions every day. This makes a fun, practical and comfortable SUV or crossover a solid vehicle choice, from coast to coast. Listed in no particular order, check out these 10 popular SUV and crossover models to...
The best features of 10 popular hatchbacks
If you are in the market for a hatchback, you'll want to check out this overview of these 10 models and the features that make them so popular. Kijiji Autos will help you confidently choose between the best hatchbacks, including used, sporty and hybrid models – whatever is a priority for you.
10 popular vans in Canada
Cargo vans and minivans can meet the needs of many drivers. There are plenty of models to choose from at various price points, which can make it difficult to pick the van that's right for you. Whether it's passenger capacity or cargo space you're after, Kijiji Autos is here to help with your search.
Top 10 popular pickup trucks in Canada
The pickup truck has always been a symbol of utility and strength, and lately, many models have become luxury family vehicles that leave nothing to be desired. In no particular order, these popular brands represent a range of available features, engine types and towing capacities. Check out the...
10 popular sedans in Canada
Sedans are versatile vehicles that meet a variety of driving needs. Are you looking for a sedan in your area? With so many different styles, sizes and price points to choose from, it can be difficult to pick a model from such a long list of award-winning vehicles. In no particular order, these...
What you should know about these 10 popular wagons
If you are looking to buy a wagon, explore Kijiji Autos list of these popular models, and the features that make them a great choice for your next car. This list is in no particular order and will help you easily choose between great wagons, whether you’re looking for luxury, affordable, small...
9 popular coupes in Canada
Sporty and sleek, the coupe is a popular two- or four-door car that puts the fun back into driving. Fuel-efficient and compact, this body style is designed for performance. Are you looking for a coupe for sale near you? In no particular order, here is a list of 9 popular coupes in Canada...
7 popular convertible cars in Canada
Convertibles are fun and adventurous cars that are perfect for cruising around when the weather is great. Are you looking to buy a convertible? From roadsters to off-roaders, convertibles (or cabriolets) are a great choice for those who love driving for its own sake. Can't decide which...
How to test drive your next car confidently
Need help getting the most out of your next test drive? Norman Hébert from Groupe Park Avenue is here to steer you right on the essential questions you need to ask and things to pay attention to when heading to the dealer to test out your next vehicle. Visit Kijiji Autos and start your car...