Car Value Showdown: Which Type Holds Up Best?
Let’s face it: buying a car can be a gamble. You never know how much it’ll be worth a few years down the line. But some cars hold their value better than others.
Non-plug-in hybrids are the winners here. After three years, they still have about 71% of their original value. That’s a pretty good deal, considering they cost around $21,555 on average.
Gasoline-powered cars aren’t too far behind, keeping about 67% of their value. But diesel and electric cars? Not so much. Diesels hold onto 65%, while electrics plummet to just 50% of their original value.
These numbers come from a report by Ganvam, a car association. They looked at how different types of cars lose value over time. It’s no surprise that some cars do better than others, but the differences are pretty big.
What’s Behind the Numbers?
So, why do non-plug-in hybrids do so well? For one, they’re pretty popular. They made up 37% of all car sales in the first quarter of the year. People like them because they’re a good compromise between electric and gas-powered cars.
As for electric cars, their low resale value might be due to range anxiety and the fact that technology is changing so fast. Buyers might be worried that their brand-new electric car will be outdated in a few years.
On the other hand, older cars are doing pretty well. Ones that are over 10 years old are selling for an average of $14,500, which is up 4.7% from last year. It seems people are looking for affordable options, and older cars are filling that gap.
In the end, it’s all about what you’re looking for in a car. If you want something that’ll hold its value, a non-plug-in hybrid might be the way to go. But if you’re looking for something cheap and don’t mind taking a risk, an electric car might be the better choice.