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ThunderMage
Updated:05/06/2024
Understanding the value retention of used SUVs compared to new vehicles can provide valuable insights for potential buyers and sellers.
How Do Used SUVs Hold Their Value?
SUVs are among the most popular vehicle types in the market, making their resale value an important consideration.
Factors Affecting Resale Value
- Brand Reputation
- Vehicle Condition
- Mileage
- Market Demand
- Features and Upgrades
Value Retention Over Time
Used SUVs typically depreciate slower than many other vehicle types. On average, they retain around 60% of their value after three years, compared to 52% for sedans.
Depreciation Chart
| Vehicle Type | Value After 1 Year | Value After 3 Years | Value After 5 Years |
|---|---|---|---|
| New SUV | 80% | 60% | 50% |
| Used SUV | 70% | 60% | 50% |
| New Sedan | 78% | 56% | 46% |
| Used Sedan | 68% | 52% | 40% |
Mental Map of Value Retention
1. Purchase Price → 2. Depreciation Rate → 3. Mileage → 4. Market Demand → 5. Condition → 6. Resale Value
Advantages of Buying Used SUVs
- Lower Initial Cost
- Less Depreciation Hit
- More Options for Quality Brands
Conclusion
Used SUVs not only provide a cost-effective alternative to purchasing new vehicles but also hold their value exceptionally well, making them a smart investment.
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