When it comes time to get yourself a new vehicle, you may be able to use your current vehicle as a trade-in and put it towards the purchase of a new car. For this reason, it’s important to understand your vehicle’s trade-in value. The higher its value, the less of a financial burden of purchasing a new car. You may even have more negotiating power with your car dealer.
So, what cars have the highest trade-in value in Canada? And how can you determine what your vehicle’s trade-in value is before getting yourself a new car?
Key Points You Should Know
- Certain vehicle brands and models regularly maintain their trade-in value, including Toyotas, Hondas, and Teslas.
- A higher trade-in value can help you reduce the cost of a new vehicle purchase and give you more negotiating power.
- You can help maintain your car’s value by regularly maintaining it, keeping it clean, and keeping the mileage low.
Top 5 Cars With The Highest Trade-In Value
Here are five vehicles that offer high trade-in values, according to Kelley Blue Book:
| Car Type | Model | 5-Year Resale Value |
| Compact Car | Honda Civic | 53.8% |
| Mid-Size Car | Honda Accord | 52.7% |
| Midsize SUV | Hyundai Palisade | 52.6% |
| Minivan | Toyota Sienna | 48.4% |
| Electric Vehicle | Hyundai IONIQ 6 | 37.3% |
Honda
Honda continues to be among the more popular vehicle brands among car buyers, and for good reason. Hondas are known for their reliability, fuel efficiency, and affordability.
Since its inception, the Japanese carmaker has grown into one of the world’s largest and most popular automobile manufacturers. It boasts a wide range of vehicle models under its belt, including the Civic and Accord, which have become household names in the auto industry.
The brand’s reputation is built on excellence in engineering excellence, with an emphasis on safety, performance, and innovative technology. More recently, the car manufacturer’s commitment to environmental friendliness is shown with its hybrid and electric models.
Hyundai
Hyundai is a South Korean car manufacturer that has come to be known for its advanced technology, commitment to quality, innovative design, and affordability. Since its inception in 1967.
Hyundai has established itself as a world leader in the automotive industry and now produces a wide and diverse array of vehicles, including sedans, SUVs, and electric cars. Models like the Hyundai Sonata and Elantra continue to remain highly popular among car buyers thanks to their reliability, performance, and value.
Hyundai’s focus on safety and environmentally-friendly solutions is clear in their development of state-of-the-art features and environmentally conscious vehicles. The brand’s luxury division, Genesis, is also seeing growth in popularity and a strong reputation for its sleek design and premium features.
The Korean car manufacturer continues to attract a growing number of car buyers across the globe, providing drivers with both quality and affordability.
Toyota
Toyota cars, such as the Toyota Sienna, are ranked as one of the top cars with a high resale value. Toyota is among the more popular car brands across the globe. The celebrated Japanese car manufacturer is known for producing reliable, durable, and innovative vehicles, all with exceptional value.
Founded in 1937, Toyota has expanded its lineup of vehicles and is now considered among the most prominent car manufacturers in the world. Its extensive fleet of vehicles, including the ever-popular Corolla and Camry, are noted for their long-lasting quality and efficiency. In keeping up with today’s increasing focus on electric vehicle technology, Toyota has set the industry standard with its Prius, being among the first of its kind.
Car buyers appreciate Toyota’s commitment to reliability, endurance, and affordable pricing continues to make it one of the most sought-after car brands in the world. Its reputation continues to make it a preferred choice for drivers seeking dependability and innovative vehicles at a price point they can afford.
Why You Should Choose a High-Value Trade in Car
Cars depreciate in value very quickly, but depending on the car you get, some retain its value better than others. While a car with a high trade-in value may not provide any immediate benefits, it does come with significant long-term advantages, including the following:
Reduce The Cost Of A New Vehicle
When purchasing a new car, many people trade-in their old car to cut down on costs. The higher your car is worth, the more money you can end up saving. Moreover, you may not have to finance the entire amount of the car, which in turn will further reduce your costs.
Avoid Negative Equity
If you ever get into an accident where you total your car, your insurance will pay you the current value of your car. If your car is worth less than what you owe your dealer, you’ll end up having to pay the difference. But with a higher-value vehicle, you can avoid winding up in ‘negative equity’ and having to cover the difference out-of-pocket.
Sell Your Car For More
When trading in your car, dealers will always offer you less than what your car is actually worth in order to make a profit. While it may be more convenient to trade in your car, you can opt to sell it instead. High-value trade-in cars are easier to sell and can help you control the amount you get for your car.
Learn more: Want To Sell Your Car? Here Is How To Do It
Increase Negotiating Power
A high trade-in value not only slashes your out-of-pocket costs when you buy a new car, but it also puts you in a better position in dealership negotiations. You’ll have more power to discuss lower rates, additional discounts, or upgraded features.
Factors That Impact Trade-In Value
Several factors influence the trade-in value of your car, including the following:
Brand
Certain brands have a better reputation than others, such as Honda and Toyota. Brands like these are known for their reliability and durability, which makes their models more attractive in the used vehicle market. As such, these vehicles tend to retain their value better than other brands.
Condition
A vehicle in good condition that’s been well maintained typically holds a higher trade-in value. Additionally, vehicles with a comprehensive and documented service history are especially attractive to buyers and dealerships.
Mileage
Lower mileage is one of the first things that buyers and dealerships look at when assessing the value of a vehicle. The lower the number of km’s on the odometer, the better.
Demand
Popular models with a strong demand typically have higher trade-in values. SUVs and fuel-efficient vehicles, for instance, have long been in high demand.
Age
Older models tend to have lower trade-in values, while newer vehicles typically have higher vehicles. That said, certain models are known to hold more value even when they’re older, especially the more popular and reliable brands.
How Can You Find The Trade-In Value Of Your Vehicle?
There are a few ways to determine your vehicle’s trade-in value:
- Online Tools: Use online valuation tools from sites such as Kelley Blue Book or Clutch.
- Dealership Estimates: Speak with your local dealerships to get an assessment of your vehicle’s current value.
- Listing Comparison: Check out current listings for vehicles similar to yours to get an idea of its current market value.
Learn more: What Is My Car’s Value In Canada? 5 Ways To Find It
How To Maximize Your Vehicle’s Trade-In Value
To ensure a high trade-in value, consider the following:
Keep Up With Regular Maintenance
Bring your vehicle in for regular maintenance checks with your mechanic to ensure it’s operating well and to identify any potential issues that require attention. Ensure you keep accurate service records to prove to future buyers that your car has been properly maintained.
Make Minor Repairs As Required
Fix any dents and scratches and replace worn out components, like wipers and floor mats, before taking your car to a dealership.
Keep It Clean
Maintaining a clean interior and exterior is essential. This involves regular washes, interior detailing, and avoiding smoking while in the car.
Research The Current Car Market
Use online tools like Kelley Blue Book and Clutch to help you estimate the value of your car before trading it in.
Financing Your New Vehicle
If you’re currently in the market for a new or used vehicle but you don’t know how you’re going to afford it, you need to consider all your financing options:
- Dealership In-House Financing: A convenient option would be to apply for auto financing directly with the dealership you’re buying your car from. It’s a one-stop-shop option, though you may have less flexibility in terms of interest rates and loan terms.
- Banks: Traditional financial institutions like banks and credit unions often offer competitive rates, especially for current clients and members with good credit. However, you have poor credit, you may have to look elsewhere.
- Online Lenders: If you have less-than-stellar credit, you may want to get auto financing from an online lender. These alternative lenders provide quick pre-approvals and allow you to shop for the best rates based on your credit profile.
Learn more: How To Finance A Used Car In Canada
Final Thoughts
Choosing a vehicle with a high trade-in value can significantly reduce the cost of a new vehicle. Models known for reliability, high resale value, and demand tend to offer the highest returns. By understanding these factors, as well as what you need to do to maintain your car’s value, you can maximize your vehicle’s future worth.
