you think about the costs of owning a car, what do you think of – the gas,
maintenance or maybe insurance? Actually,
depreciation is often one of the larger expenses of car ownership.
to U.S. News & World Report, new vehicles lose value at
an average decline of 15-25 percent each year during the first five years. And
whether new or used, all vehicles lose value over time. Since the rate of depreciation varies by vehicle
model, it’s a good idea to take resale value into consideration when shopping
for your new ride.
to the experts at Kelley Blue Book, picking a vehicle with
excellent resale value is very likely the most important thing you can do when
it comes to keeping costs down. Paying a
fair price for the car and securing a good loan rate can be undone by poor
resale value, because eventually you’re going to sell it or trade it in.
Cars that retain a higher
you’re car shopping this year, it appears that bigger vehicles are depreciating
better. Trucks and SUVs appear in nine of the top 10 spots on the Kelly Blue
Book 2017 Best Resale Value Awards. Per Kelley, while the
average new vehicle will be worth about 33 percent of its original sticker
price after 60 months, the top 10 vehicles on their list will return an average
of 50 percent to their owners at resale time.
Kelley authorities say that choosing a car with good resale value can often
save you more money in the long run than going for big rebates and other
New cars that may lose value
highlight the other end of the spectrum, Forbes magazine shared the results of a
study conducted by the used-vehicle website Carlypso.com. Among the top 10 vehicles expected to have
resale issues were the Nissan Leaf, Dodge Charger, Volkswagen Beetle, Mitsubishi
Lancer and Kia Optima.
A little research goes a long
you’re ready to shop for your next vehicle, it will pay to do some research on
resale value before making an investment. Whichever new (or used) car you
choose, Erie Insurance can ensure that investment is protected with a great auto policy at a great price. And we can help you take
care of the depreciation issue, too, with a coverage endorsement that provides
true replacement value if you have an accident.
It’s called New Auto
Security, and you can ask your agent to add it to your ERIE auto policy. If you’ve had your new car less than two
years and it gets totaled, ERIE will reimburse you the cost to replace it with
the newest model year. And if your new car is in an accident but it’s not a
total loss, ERIE will pay to repair the vehicle without a deduction for
If your vehicle is past its
second birthday, ERIE will pay the cost to replace it with another vehicle of
the same model that is two years newer. That means the coverage is good to have
no matter what the age of your vehicle.
Reaching out to a local Erie Insurance agent is a
good way to start your research. He or she can explain the coverage details and
get you a quote.
A vehicle is considered new
when it is less than two years old and is owned by the original purchaser.
Eligible vehicles must carry both comprehensive and collision coverage, and the
policy deductible will be applied at the time of a claim. Insurance products
are subject to terms, conditions and exclusions not described in this post. The
endorsement is sold on a per-vehicle basis, not per policy, and contains the
specific details of the coverages, terms, conditions and exclusions. Coverage
is not available in all states. Please refer to our disclaimer and talk to an ERIE
agent for policy details.