Whether you are looking to buy a car or sell one, it is important to know which cars do best on the used market. Finding used cars, especially the good ones, is kind of like finding gold at the end of a rainbow. So, knowing which cars to choose and where to find them is the most important thing when it comes to buying or selling used cars.

How Used Cars Hold Their Value

Whether you’re shopping for a new car that will get you the best trade-in value down the road or you’re looking for used cars with the best value-to-price ratio, it’s worth understanding how a car maintains its value over time.

While you can’t stop depreciation, used car value depreciates less than that of a new car. On average, a new car can lose 20-40% of its value in the first three years of ownership. The rate of depreciation drops off substantially after those first years.

How does a vehicle hold its value? There are a number of factors, including:

• Brand reputation: prestigious auto brands tend to maintain a higher resale value
• Reliability: some makes and models are known for reliability and lower five-year maintenance costs
• Upkeep:  it’s no secret that a vehicle that’s been meticulously maintained will garner more on the market.

With all that in mind, here is a list of five used cars that hold their value. 

#5. Toyota Corolla

That’s right. It’s Ol’ Faithful. The Toyota Corolla is one of the best-used cars in the world. The Corolla, while not incredibly flashy or fancy, holds its value exceptionally well. Many people who own Corollas have bought them used, and rarely do they regret doing so. If you are thinking of buying one of these used, rest assured it’s a great choice.

#4. Toyota Tacoma

Yes, another Toyota. What did you expect?! Toyota knows how to make vehicles that last forever, and this helps those cars hold their value. The Tacoma is a much sought-after truck. While it’s not that big, impressive, or fanciful, the Tacoma knows how to perform for the long haul. The Tacoma is one of Toyota’s best-selling trucks, and if you are thinking of buying one, you should stop thinking and start buying.

#3. Ford Mustang

The Ford Mustang is the number 3 pick on this list. While the Mustang is not known for lasting forever like the Toyota, this car is an American classic that keeps the muscle car spirit alive. Mustang is an American trademark, and the brand will be around for a long, long time. Everyone secretly wants a Mustang, and that is why their price holds so well.

#2. Jeep Wrangler

As one of the best Jeep cars ever made, the Wrangler holds its value exceptionally well. As the world’s premier offroading car company, Jeep vehicles hold their value well and are great cars to buy used. It’s true that maintenance for Jeep cars can often be tedious, but their value is as firm as the mountains they scale.

#1. Porsche 911

And last but not least, there is the Porsche 911. Don’t be surprised to see this car on the list, even at the number one spot. Porsche is a well-known brand, yes, but the 911 is a car that everyone wants and can identify anywhere. Not only is it well known, but it is fairly affordable as a new car, which makes it an even better option when used. Sporty, flashy, and fast, the Porsche 911 is an awesome used car option.

Selling or Buying Used Cars? It Pays to Do Your Homework

The market for used cars is shifting and changing so that used cars, which have been overpriced over the last couple of years, are starting to get cheaper. On the flip side, if you are thinking of selling your used car, get to it because the market is going to keep pushing prices down and down.

Whether you are a buyer or a seller, knowing which used cars hold their value best can be very advantageous.