With the stock market entering a rough period, many people don’t realize that the used cars in their driveway might be worth a lot more than they think. Trade-in values for many used cars are at an all-time high with nearly a third of dealerships paying over 20% more for cars than they used to. Many dealers are eager to stock quality inventory and are willing to make more lucrative offers for popular and well-maintained vehicles.
Tesla Model 3
The Tesla Model 3 is one of the most popular used cars on the market with dealer trade-ins up 12% from March to April this year. It may not be the cheapest electric car available, nor is it the best-performing, but it does offer a winning combination of excellent range, a comfortable ride, and solid performance. In 2021, the used 2018 Tesla Model 3 Long Range started at around $30,000, which is a good discount from new. That price is likely to be higher in 2022.
Toyota RAV4 Prime
Another vehicle up 12% in value from March to April this year is the Toyota RAV4 Prime. The RAV4 is already one of Toyota’s most popular vehicles, so it’s not a surprise that the plug-in hybrid Prime has gained a solid fanbase. The RAV4 Prime offers a good all-electric range, is quick to accelerate, and comes with standard AWD. The RAV4 Prime can travel up to 600 miles on a full tank of gas, which is an incredible amount for a roomy and family-friendly SUV.
Tesla Model Y
The Tesla Model Y is another electric car that has increased in value, having gone up 9% in the last few months. The Model Y has an expected depreciation rate of 49% after five years and a five-year resale value of just under $30,000. Currently, wait times on new Tesla models are around nine months, which means that many buyers looking for Teslas are now looking at used cars. It’s no surprise then that both dealerships and private party buyers are paying more for used Tesla models than before.
It’s not only electric and electric-hybrid vehicles that are going up in value, however. The Kia Optima is also up 12% in the last few months. Kia joins Tesla as the two automakers with the strongest overall increase in value to the tune of 7% on average. The Kia Optima is a stylish sedan with a Great predicted reliability score, according to J.D. Power. Average maintenance costs per year on the Optima are also less than the average for midsize cars.
Another Toyota on the list of used cars increasing in value is the Corolla. The Toyota Corolla has gone up 9% in value in the last few months. Whether used or new, the Corolla is Toyota’s longest-running and most popular nameplate. The Corolla also ranks first out of 36 other compact cars with a 4.5 out of 5.0 reliability rating. Major issues with the Corolla are uncommon and its annual repair cost is far less than the average for its class.
With many used cars increasing in value, now is a good time to unload a vehicle you don’t use much. If you have your eye on a new car in stock, then you can maximize your trade-in payout to save money on the final cost.
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