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Strategies for Smart Car BuyersSM
Consider Your Options
Some Options Depreciate Faster Than Others
By Philip Reed, Senior Consumer Advice Editor
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This monthly column presents crucial, stand-alone car-buying strategies to help you avoid dealership tricks and traps and get the best price on your next car.
Informed car buyers know how important it is to choose a vehicle that holds its resale value. But many consumers don't realize that the new-car options you choose will depreciate at different rates.
In fact, some options lose nearly all their value while other options retain as much as half their worth after three years. Depreciation aside, choosing the right options can make your vehicle more enjoyable for you and more attractive to the next buyer.
One industry insider said that buying a car with the "big three options" — power sunroof, leather interior and CD player — will ensure a quick sale or high trade in value.
Sadly, safety equipment usually scores low on the resale value of options. In other cases, options that introduce new technology are expensive when new and don't always add extra value when being resold.
One rule of thumb is that visible options and comfort features hold their value well. In some cases, used-car shoppers are not even aware of all the options that are included with the purchase of their car. For example, antilock braking systems are invisible and thus do not add to the asking price of a used car.
Choosing options can be confusing because they are often bundled together as "packages." These packages save the buyer money by offering more options at a discounted price. Additionally, they group options together in a logical fashion under certain descriptive titles such as "Performance Package" or "Comfort Package" or even "Luxury Package." When it's time to resell the car, these packages will usually provide a nice return.
Edmunds.com data analysts compiled the following list of packages and options that are particularly popular and add to the resale value of the car:
- Rear DVD entertainment systems
- Sun/moonroofs
- Leather seats
- Sport packages
- Performance packages
- Upgraded engines
- Adjustable air suspension
- Navigation systems
When shopping, give some thought to how well the options will stand the test of time. Safety is, of course, extremely important. But don't expect it to add much to the resale of your car. Thankfully, safety items are not especially expensive for the potential benefits they offer. However, shopping for new cars with certain safety features, such as side curtain airbags, can make the car harder to find. Contact more dealerships, via the Internet, to locate the car you want.
When considering options, make sure you are realistic about your total cost. Many cars have a low base price, but quickly become expensive when you have them optioned to your taste. Use Edmunds.com's True Market Value "Price With Options" feature which will add all the options to the base price and the shipping and the destination fee.
For this, and other buying and leasing strategies, pick up a copy of STRATEGIES FOR SMART CAR BUYERS, by the editors at Edmunds.com.
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