Sometimes what we choose in a body design or options can have a huge effect on the resale value of the automobile
I remember when I was young and in fact, still to this day, I like the looks of a two door vehicle more than a four door. Two door cars generally look smoother and more power oriented. Cars like Corvette, Camaro, Challenger, Mustang, 300 ZX, Etc. look sportier and “cooler.” Stick shift is another example. You shift and feel the power or more control and it’s a little less expensive.
What we don’t realize, or see, is the effect it has on our resale value. When we trade it in or sell the vehicle out right, there is an effect. Even when leasing a vehicle it hurts us because the residual values listed in the leasing guides is generally a lower figure for many of these models or option configurations.
Just think about it, If a person needs a four door vehicle it is very difficult to sell them a two door model but if they want a two door and can’t find it they will often settle on a four door. If a person has not learned manual transmission operation, they avoid manual transmission when they buy. Anyone that will be driving with a family on board needs a hand free for the obvious reasons. Plus Manual transmission just isn’t convenient in city situations.
Another example would be a station wagon. With all the mini vans available, it has become hard to sell a station wagon. Sure there are buyers for all of these resale issues but there are less, many less, buyers.
In the case of a leased vehicle, the monthly payment ends up being higher because of a lower residual on poor resale models or less desirable option packaging. If you plan on selling your own lease vehicle to make some extra money at the end of the lease, it can be much more difficult to sell a manual transmission or a two door. You might think that stick shift would be okay on a lease because of the lower initial price but there are more automatic transmission buyers then stick shift buyers so even the small price advantage is off set by a lower residual.
Keep these facts in mind when you’re buying. If you are buying a luxury vehicle, get all the amenities.
If you are buying a pickup, short boxes look great but that absolutely kills the resale value. If it’s a Mini Van get the most seating available, automatic trans and all the family stuff. These additions will pay off in the long run and yes, even color can make a difference in resale value