MSRP
MSRP stands for the manufacturer's suggested retail price and is the price that the manufacturer thinks dealers should sell it for. However, individual dealerships can charge customers more or less for the vehicle as they see fit.
Find Out The Future Price
Before spending a lot of money on that new car, you must consider its future value for resale. Car markets fluctuate widely, so it's critical to know the projected price of your vehicle in the future if you think you might want to sell it later.
Residual value is also an important component to consider when leasing a car and it significantly impacts lease price - check out our lease calculator too.
Our residual value calculator uses millions of historical data points based on algorithmic market calculations to give you an idea of its future value so you can decide the best time to trade it in or sell it.
When you make a purchase or investment, there is no guarantee of future gains or losses. However, by using our vehicle residual value calculator, you will have the same information that car dealers and financial institutions use to determine lease prices and when offering you a "holding price" deal.
GoodCar works closely with reputable data vendors to provide you with a future value as a percentage (%) of the initial cost or the monetary ($) equivalent. Car markets change drastically based on many factors, and car prices may go up or way down.
We update our data bi-monthly and adjust future values based on the current selling price, production, volume, and potential demand and supply along with other economic factors.
Residual Values and Why They Matter
Residual value is helpful when you compare buying different vehicles. You can make an informed decision about which car retains its value better. That value also indicates the quality of the product itself and how well it holds up over time. Finding out the residual value before buying may help you determine how often you will be in the repair shop or not.
You can use our calculator to determine a future resale value and plan to sell or trade your vehicle in at just the right time to maximize your investment. For example, if you plan on leasing a car that has a low residual value at the end of the lease, that can help you decide if it makes sense to buy the car or not as part of the lease termination.
Whenever you check the value of your vehicle, you can instantly calculate your equity. If you owe any money on the car, you can project future equity as you pay it off.
Cars With the Highest and Lowest Residual Values
Car values change rapidly as markets evolve. However, some brands regularly top the lists of the vehicles with the highest and lowest residual values. Some examples are:
TOP 5 - Best Cars for Resale Value After 1 Year
1. 2023 PORSCHE TAYCAN CROSS TURISMO
2. 2022 CHEVROLET TRUCKS SILVERADO 2500HD 2WD
3. 2023 PORSCHE TAYCAN
4. 2023 PORSCHE TAYCAN SPORT TURISMO
5. 2023 AUDI S7
TOP 5 - Worst Cars for Resale Value After 1 Year
1. 2018 SMART FORTWO ELECTRIC
2. 2018 FIAT 500E
3. 2019 FIAT 500E
4. 2019 SMART EQ FORTWO
5. 2018 BMW I3
TOP 5 - Best Cars for Resale Value After 3 Years
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1. 2023 TOYOTA TUNDRA 4WD
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2. 2022 TOYOTA TUNDRA 4WD
3. 2022 FORD TRUCKS F-150 LIGHTNING
4. 2023 TOYOTA TUNDRA 2WD
5. 2023 TOYOTA TACOMA 4WD
TOP 5 - Worst Cars for Resale Value After 3 Years
1. 2018 BMW 7 SERIES
2. 2018 VOLKSWAGEN E-GOLF
3. 2019 SMART EQ FORTWO
4. 2018 FIAT 500E
5. 2018 SMART FORTWO ELECTRIC
TOP 5 - Best Cars for Resale Value After 5 Years
1. 2023 TOYOTA TACOMA 4WD
2. 2023 FORD TRUCKS BRONCO
3. 2023 TOYOTA TUNDRA 4WD
4. 2023 TOYOTA TACOMA 2WD
5. 2022 FORD TRUCKS BRONCO
TOP 5 - Worst Cars for Resale Value After 5 Years
1. 2019 LINCOLN MKT AWD
2. 2019 VOLKSWAGEN E-GOLF
3. 2018 FORD TRUCKS FLEX 2WD
4. 2018 BMW 2 SERIES
5. 2019 MASERATI QUATTROPORTE
Evaluating a Vehicle
When establishing an estimated value for your vehicle, you must understand some key components.
New Car Value
Some items that factor into a new car's value are:
Destination Charge
The destination charge is a fee the manufacturer charges the dealer to transport the car to the dealership. Dealers pass this fee along to the buyer. Dealerships may lump transportation, gas, delivery, and other costs into this one category.
Gas Guzzler Tax
For vehicles that do not meet current federal fuel-efficiency standards, buyers must pay an additional tax called the gas guzzler tax. It applies to some SUVs, trucks, and minivans.
Invoice
The dealer invoice is the amount the dealership paid for the vehicle before they marked it up to sell to you. Knowing how much the dealer paid helps you work a better deal because you can determine how much profit they are trying to make and negotiate from there.
OEM Rebates and Incentives
Manufacturers offer discounts to consumers and dealers to increase new car sales. Common OEM programs include cash rebates, marketing support, low-interest financing, and special lease prices.
Trade-In Value
Trade-in value is how much a dealer is willing to give you for your used car when buying a new one. Some things that dealers don't want you to know about trade-in deals are:
- You will get the best deal if you can pay in cash.
- Don't pay more than $500 over dealer invoice.
- If you don't like the deal they offer, get up and be ready to leave, then give them one more chance to accept your final offer. They may just take you up on it.
- Bring your own financing. Often you can get a better deal going through your own lender, which might offer their own rewards programs or special interest rates.
- Beware of any hidden "add-ons" the dealer claims you must have.
- Don't tell the dealer about your trade-in until the last minute, or they will factor that into the price of the new car.
- Trade-in value shouldn't cut into the equity you have in your car. Always use GoodCar first to see the actual value of your used car before visiting the dealer and don’t take less than it is worth.
Mileage, the condition of your car, and location history can also affect your trade-in value. Always do your homework first before making any lease deals at the showroom.
Weekly Auction or
Wholesale Value
When you trade-in your old vehicle to purchase a new one, the dealer will give you the wholesale or auction value. These figures are how much the dealer can get for the car at auction or sell it on the wholesale market. Keep in mind that this value will be lower than you can sell the vehicle to a private party (often referred to as the retail value). Depending on the vehicle's make, model, age, and condition, the dealer may offer you a low, average, or high wholesale trade-in value.
Loan Value and
Car Equity Loans
If you are strapped financially and need money fast, one solution is to get a car equity loan. If you own your vehicle outright and it has a loan value, your bank may be willing to give you a car equity loan. It works the same as a home equity loan. The financier will take out a lien on the vehicle until you pay off the loan. Your vehicle becomes the collateral to secure the debt. To find out the loan value for your car, use GoodCar's residual value calculator.
Why the Same Cars
Have Such a Discrepancy in Value
There are various reasons why similar vehicles might have a wide discrepancy in value. Some of the most common reasons include:
Trims
Trim level dictates higher and lower levels of comfort, security, and amenities within vehicles. For example, a sport-level may include better tires, a spoiler, and a sunroof, whereas a base trim level will not. Each of these extras costs money and adds to the value and price of the car.
Geography of Auto Values
Certain vehicles are more desirable in different areas of the country. Therefore, the value of the same car in the northern part of the U.S. may be drastically different than if you bought it in the southern part of the U.S. GoodCar factors in all of these parameters automatically for you.
2WD vs. AWD
Many cars offer only 2WD, which is standard but not great for winter driving. 4WD or AWD vehicles operate much better on snowy and icy roads. Therefore, these options add to the price of the car and will affect the residual value as well.
Original vs. Optional Equipment
When you purchase a vehicle, it may have original equipment, for example, a standard base head unit (radio/stereo system). If you replace any equipment with upgraded or better options, you can increase the car's future value.
Frequently Asked Questions About Residual Car Value
It is the expected leftover value at the end of a given time period. During the lease, for example, you absorb and pay for most of the depreciation. Therefore, how much the car is worth at the end of the lease is called the residual value. The term also applies to other fixed assets and their worth at the end of their useful life.
Not necessarily. The lease buyout figure is a cost listed on your lease agreement which is how much the dealership will charge you if you choose to purchase the vehicle after your lease is over. The residual value is used to calculate the cost of your lease and determine your lease payments. Before signing a lease contract, you should use GoodCar's residual value calculator to get all the facts.
A lot of things factor into the value of the car. Make, model, age of the vehicle, condition, miles, and fair market value are some of the items considered when evaluating a car. Thousands of data points contribute to calculating residual values quickly and accurately.
Higher residual values mean higher quality and durability of the car. It demonstrates that the car is unlikely to seriously deteriorate if properly maintained and serviced. Even when a vehicle comes to the end of its useful life, it still retains some value, and you could potentially sell it. You can easily check the residual values of any car make or model to find out and compare.
The residual value of a leased car is how much the dealership thinks it is worth at the end of the lease term. When determining your monthly lease payments, the dealer will factor in the price of the car, along with depreciation over the lease term, and then come up with a final value of the vehicle. That figure may or may not match what your buyout figure would be. Sometimes the residual value of a leased vehicle is called the "salvage value." Lease terms absorb the difference between the negotiated price of a car and the residual value expected at the end of the lease. The lower the residual value (in %), the higher your monthly payment on the car will be. It is therefore very important to check the residual value offered by the dealership. With our tool you have a yardstick to measure the dealership's offer.