When you’re shopping for a used car, it's important to think about more than just what you pay today; what you can expect to get back when it’s time to trade in is also important. A vehicle that holds its value makes upgrading easier, lowers the size of your next car loan, and protects your budget.
Why Trade-In Value Matters for Car Loan Rates
Car trade-in value is the amount a dealer offers for your current vehicle when you upgrade to another. Cars that hold their value well mean you can put more money toward your next purchase, reducing the size of your loan and helping you secure the best car loan rates.
Not all cars hold their worth equally. Reliability, demand in the market, and overall ownership costs all play a role in how much you’ll get back at trade-in.
Top 5 Used Cars With Strongest Trade-In Value
One of the best measures of long-term value in used vehicles is 5-year resale retention: the percentage of the original price a vehicle is still worth after five years. Most cars lose about half their value in that time, but some models hold much more, making them stronger options when it’s time to trade in.
1. Toyota Corolla (2021–2023)
The Toyota Corolla has a long-standing reputation as a dependable, budget-friendly used car. It’s a smart choice for anyone who wants low running costs today and solid resale strength tomorrow.
- Typical Used Price: $20,000–$26,000
- 5-Year Resale Retention: 65–70%
Why it holds value:
- Fuel efficiency: The hybrid option delivers as low as 5.5 L/100 km, helping with fuel savings.
- Cold-weather reliability: Known for consistent performance even in tough conditions.
- Easy to live with: Compact size makes daily driving and parking stress-free.
- Built to last: Stands up well with routine care and undercoating.
- Always in demand: Popular across used car marketplaces, boosting resale.
Bottom line: Affordable to own and easy to resell, the Corolla is one of the safest bets for long-term value.
2. Honda Civic (2021–2023)
The Honda Civic continues to be a top seller because it balances sporty handling, everyday practicality, and strong value retention. It’s just as appealing for first-time buyers as it is for families upgrading to a reliable daily driver.
- Typical Used Price: $21,000–$27,000
- 5-Year Resale Retention: 62–68%
Why it holds value:
- Low-cost ownership: Annual maintenance averages under $500.
- Fun to drive: Handles well on highways and back roads alike.
- Safety-conscious: Excellent crash ratings give added confidence.
- Hybrid availability: Newer options provide even better fuel economy.
- Resale popularity: Remains one of the most searched used cars nationwide.
Bottom line: The Civic’s mix of dependability and wide appeal makes it a model that consistently earns strong trade-in offers.
3. Toyota RAV4 (2020–2023)
The Toyota RAV4 is one of the most popular compact used SUVs on the market. Known for versatility and comfort, it’s a vehicle that works just as well for daily commuting as it does for longer road trips.
- Typical Used Price: $25,000–$32,000
- 5-Year Resale Retention: 60–65%
Why it holds value:
- Standard AWD: Confidence behind the wheel makes it a reliable car for winter driving.
- Family-focused: Spacious interior and cargo capacity fit a busy lifestyle.
- Reasonable efficiency: 8–9 L/100 km is strong for its size.
- Award winner: Regularly earns top marks for resale value from KBB and ALG.
- High demand: One of the most shopped-for SUVs in the country.
Bottom line: The RAV4 blends practicality with staying power, making it a top performer at trade-in.
4. Subaru Outback (2020–2023)
The Subaru Outback bridges the line between SUV and station wagon, combining roomy comfort with rugged reliability. Its loyal following and all-weather capability make it a consistent performer in terms of resale.
- Typical Used Price: $26,000–$33,000
- 5-Year Resale Retention: 55–62%
Why it holds value:
- All-wheel drive: Delivers dependable traction year-round.
- Durability: Handles long drives and rough roads with ease.
- Roomy interior: Spacious enough for families or adventure gear.
- Proven reliability: Consistently scores well in dependability studies.
- Trusted reputation: Strong demand in markets where winter driving is common.
Bottom line: The Outback’s balance of comfort and rugged ability keeps its value strong and makes it an affordable AWD car for winter driving.
5. Toyota Tacoma (2020–2023)
The Toyota Tacoma is one of the strongest trade-in performers of any vehicle on the market. Known for its durability and utility, it’s a used truck that holds its worth better than most competitors.
- Typical Used Price: $32,000–$40,000
- 5-Year Resale Retention: 65–72%
Why it holds value:
- 4WD strength: Built to handle rough terrain and bad weather.
- Rugged construction: Resists rust and stands up to heavy use.
- Long lifespan: Many Tacomas run well past 300,000 km.
- Utility-ready: Ideal for towing, hauling, or outdoor adventures.
- Market demand: Consistently ranks among the best for low depreciation.
Bottom line: The Tacoma proves itself as a workhorse that keeps its value, year after year.
Tips to Protect Your Car’s Trade-In Value
- Keep service and seasonal maintenance records organized.
- Wash and detail regularly to protect the appearance and prevent rust.
- Fix small repairs, dents, or scratches before appraisal.
- Consider trading in before hitting major mileage milestones.
- Present your car clean and well-maintained for the best impression.
Drive Value Further With Smart Trade-Ins
Choosing a vehicle that holds its value is one of the easiest ways to protect your wallet. When the time comes, Race Auto Group is ready to help you maximize your trade-in and find your next reliable used car. Contact us today to get started!
FAQs
How do dealerships determine my car’s trade-in value?
Dealers look at factors like mileage, model year, condition, service records, and current market demand. Vehicles in good condition with documented maintenance usually receive stronger offers.
Can I trade in a car that still has a loan on it?
Absolutely. The dealership will handle paying off the remaining balance and rolling any equity into your next purchase. Race Auto Group takes care of this paperwork for you.
Can my trade-in be used as a down payment on a loan?
Yes. Your trade-in value can be applied directly toward the purchase of your next vehicle, reducing the loan amount and potentially improving your vehicle financing terms.
Do I need to bring paperwork when I trade in my car?
Yes. You’ll need your registration, proof of ownership, and any lien documents if you’re still paying off a loan. Having service records on hand can also help boost your appraisal.
