When I was a kid, I drove an old Nissan Pathfinder for almost four years. I bought it from a relative who was mechanically inclined and loved cars. He was shocked to learn that I barely changed the oil and just didn’t know how to take good care of it. I got quite a lecture about the need to take care of my vehicle, and how, as long as I took good care of it, any model of car would last me for years or decades.
I know that many people buy a car to reflect their status or to show off. People buy cars for all sorts of reasons, but for the most part, they tend to hold onto their cars for a while. Less than 2% of new car buyers sell their car within in the first year of ownership. In fact, most Americans keep the same car for about seven years, or longer.
In my opinion, that sounds extremely sensible. A car is a significant investment for anyone. Like for people with set budgets, families, and mortgages. It seems to be too much for anyone who can afford to switch-up their rides regularly too. The average American spends about $36,000 for a new car. Additionally, the average car loan is about $30,000.
In my opinion, you should buy a car based on your personal needs, finances, and lifestyle. It costs a lot of money to keep, maintain, and insure a car. There are many models of cars that are frequently resold within a year. Whether you are buying or selling a car, it’s a good idea to be aware of the car models that are resold sooner than others.
Mercedes-Benz & BMW
According to Cars.com, six of the eleven cars that are the most likely to be resold within a year were surprisingly mid-sized, European luxury sedans. The BMW 3 series, worth about $45,000, is about 8% likely to be resold within a year. A BMW 5 series, worth about $61,000, is 7% likely to be resold in a year.
The BMW X3, worth about $50,000, and the BMW 4 Series, worth $55,000, have a 3.9% potential for annual resale. Meanwhile, the Mercedes-Benz C-Class, worth about $49,000, has a 6.1% resale potential. The Mercedes-Benz E-Class, worth $65,000, is 3.9%.
Chrysler, Dodge, Nissan, & Subaru
The $15,000 Nissan Versa has a 3.2% annual resale potential. Its hatchback version, the $17,000 Versa Note, is about 4%. The $32,000 Subaru WRX is 3.3% and the $25,000 Chrysler 200 is about 3.8%. If you bought a Dodge Dart, worth about $20,000, you have a 3.9% likelihood of selling it within a year.
Reasons for Annual Resales
Buyer’s remorse in regard to the brand is a likely culprit for quick resale. Inability to keep up with the maintenance and repair costs inherent with owning a luxury car is as well. Most car buyers are also unaware that they are paying into the lucrative, “previously owned,” used car market infrastructure. Luxury brands, like Mercedes Benz and BMW, are resold within a year as relatively new vehicles to people who want to buy luxury cars at a lower price.
In those cases, the only ones who seemingly lose out are those paying full prices for the privilege of one-year ownership. One of the most obvious reasons is that some cars depreciate much faster in one year than other cars. The BMW 5 Series, for example, depreciates in worth by about 68% within a year of ownership.
Prioritize Need Over Want
When you buy a car, research the maintenance and insurance costs for the particular model. Consider how a car will serve your family, business, and personal needs. Unless you can light money on fire without wincing, it is just blindingly obvious that buying a car just to resell it within a year is an awful waste of time and money.
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