With the economy going through some rough spots, Japanese used cars have become a great investment. There are many people who wonder about the value of certain vehicles. Most people know that a new car will lose a lot of value when it is driven off the lot. With this in mind, instead of buying new cars, consumers are shopping more for used cars. Most of the value of a used car has already depleted, depending on the age. With used Japanese cars, they've become popular because of the superior gas mileage they offer, and more importantly, their long term value.
The first question that will arise when you are considering a Japanese used car is what the long term value is. It's a valid consideration. According to a 2002 study conducted by JD Power & Associates, the five manufacturers that held the highest rankings in long term value were all Japanese brands.
Ideally, if you are trying to figure out what the long term value of a Japanese used car is going to be, you should take a peak at the statistical information that is done for Japanese cars. Additionally, take a stroll through some classified ads where people are selling their Japanese used cars. Kelley Blue Book is another tool that you can use. The Kelley Blue Book value is a huge determining factor for the value of a used car.
You should keep in mind that there are many types of cars that will increase in value, like antiques, but there are many different models within Japanese-made cars that will also decrease more than other models. For example, one model Honda may decrease in value over another model, and at a much faster rate. Dealers can be helpful, but in the long run you need to do your own homework. In most cases, dealers are somewhat biased by the fact that they want to make a sale.
In addition to the age of the vehicle, the long term value of a Japanese car can also be affected by maintenance. Proper maintenance on any vehicle is necessary in order to ensure that it stays running properly, and this is something that needs to be done regularly. The little stuff, like tune-ups and oil changes aren't really a big factor; it is more about how often the particular Japanese used car will need major work. How durable is the vehicle? If there are particular models that are known to cause ongoing troubles and require a lot of investment in keeping them drivable, the long term value of the Japanese used car is going to be affected.
In most situations, the long term value of a Japanese used car is much higher when compared to domestics, like Ford and Chevy. While some people believe that the domestic manufacturers are less costly to maintain, and much easier to take care of, ultimately the Japanese used cars are the ones that hold their value for the longest periods of time. You may think that purchasing an American made vehicle is a wise choice in the long run, and you might be right, but you have to consider what you are paying for the vehicle, new or used, versus what value it will have 5 or 10 years down the line.
Related Questions and Answers
Do American Cars Have a Lower Used Car Resale Value than Japanese Cars?
Factors that influence a used car resale value are many and will often not really depend on the country of origin. There are those cars that are perceived to be longer lasting and are a good investment, even ten years after manufacture. Japanese cars have the advantage of being considered to have longevity over their American counterparts. People who are looking for used cars will want to buy a car that will continue to offer good service, even at an advanced car age. American cars are a great buy as new cars, but the Japanese cars do much better on the used car market and will fetch a better price. So the answer is yes, American cars do have a lower used car resale value than Japanese cars.
Do New Japanese Cars Depreciate Quicker than Other Cars?
There are several factors that determine the rate of new car depreciation in any part of the world. There is the mileage, initial cost, maintenance history, year of manufacture, color, as well as the brand name to consider. While all the others are vital considerations, the brand name of a car will be significant as an emotional aspect. Japanese cars do depreciate faster than other cars, but this is mainly due to perception more than anything else. When people consider buying something, they will pay more for something they consider worthy, though in reality this may not always be true worth. New Japanese cars suffer poor perception and thus have lower resale values as compared to other cars translating to a higher rate of depreciation.