If you’re planning on buying a new car this year you should consider what it will be worth in several years, when it’s time to trade it in for a new vehicle.  There are four factors that will help you determine what your car’s resale value will be.

First of all, supply and demand is a big factor.  Vehicles that are produced in high volumes, such as Ford and Chevrolet pickup trucks have a lower resale value because there are so many of them.

Brand image is also an important factor.  For example, Honda, Toyota, and Porsche have excellent images; therefore they retain their value better.

If a new car is being offered with high incentives, there is a good reason for it.  Chances are that car won’t hold onto its value.

Also, you want to do your research and find out if the car you are thinking of buying was sold to commercial and rental fleets.  If a lot were sold, its resale value will be lower.

Just remember, you’re only getting a good deal on a car if it retains its value.  Also, make sure to buy an auto warranty so you won’t be paying unnecessary expenses down the road.