Are you thinking about buying a Dodge Durango? Or maybe you already have one and are curious how well a Dodge Durango holds it’s value.
In this article we will dive into the factors that impact resale values and how it relates to the Durango.
Does Dodge Durango Hold Its Value?
On average, the Dodge Durango loses 40% of it’s value after the first two years of service. After five years the value of the Dodge Durango falls by nearly three-fourths of its purchase price.
If you are still interested in the Dodge Durango, there is a lot more to know about how it holds it’s value.
Let’s dive into the details!
When you’re shopping for a new car, you probably aren’t immediately thinking of the vehicle’s resale value, but perhaps you should.
After all, the resale value of a vehicle is an important component of its overall value, and something that should be taken into consideration when purchasing it.
This overview will help you determine whether or not a Dodge Durango is a good choice of vehicle, in terms of purchase price as well as whether or not it can hold its value.
There are a number of different factors which come into play when determining whether or not a vehicle will hold its resale value. For the most part, a Dodge Durango is not an optimal model for resale, although it has other features that might still make it appealing for the right value.
We’ll review the aspects of this vehicle that affect whether or not it holds its value, as well as the pros and cons to purchasing it regardless of resale value.
Read on to learn everything you need to know about whether or not a Dodge Durango does hold its value.
For many experts, the depreciation of a vehicle is one of the main factors they consider when valuing a car, truck, or SUV. But what exactly is vehicle depreciation, and why should you consider it when you are contemplating purchasing a Dodge Durango?
Depreciation is a term which describes how something loses value over time. Obviously, brand new items are valued more than those that are used, in most cases, unless there is a particular reason to consider something used more valuable. For example, certain items can gain value over time, like antiques.
Vehicles, however, for the most part, lose value—and they lose value rapidly. Depreciation measures how quickly this happens. This is the case for almost all vehicles, with very few exceptions.
These exceptions are rare and usually because the vehicle is produced in very limited numbers or is considered a collectible for other reasons.
Nonetheless, while the vast majority of vehicles lose value relatively quickly, some still depreciate faster than others. Some of the factors that can impact this include the make of the vehicle, its model, its mileage, capabilities, and age.
It may surprise you to know that depreciation rates usually decrease over time. That is, new vehicles depreciate at a very fast rate, which tapers off.
So your brand new Dodge Durango will, almost immediately, be worth less than you paid for it, by a significant amount. The difference between the value of two Dodge Durango SUVs that are 1 or 2 years old, and two that are 3 or 5 years old is much greater.
For this reason, if you are planning to buy a vehicle brand new, the best plan is to keep it at least five years before selling it.
This can also mean that if you are planning to keep a car for only a year or two, it’s a better idea to purchase it used.
Why Used Cars are a Better Bet for Resale
Most new vehicles, including a Dodge Durango, will lose about ten percent of their value as soon as you drive it off of the lot from the dealership, and its value will continue to drop, about twenty to thirty percent within the first year.
After that, the rate of depreciation is more variable, depending on how you’ve used the vehicle and its particular features. That’s why, if you’re planning to purchase a brand new vehicle, it’s best if you are planning to keep it for the maximum length of time.
While used cars also depreciate, the rate of depreciation is much lower. More importantly, their initial cost is significantly less, due to the speed at which new cars depreciate.
By purchasing a vehicle that’s just a year old, you may save up to a third of its original price, and that savings only increases if you buy a vehicle that’s two or three years old.
This means that your initial investment is much lower, while the capabilities of the vehicle remain nearly the same as one that is brand new.
Not only that, but it won’t lose its value as quickly as a brand new car, which means you have a better chance of recouping a larger portion of your initial investment should you decide to resell your Dodge Durango.
Is Leasing a Dodge Durango a Better Option?
One of the pluses of choosing to lease instead of buy a Dodge Durango is the fact that the leasing dealership considers depreciation when calculating the cost of your lease.
And, if you are considering purchasing it at the end of the lease, you’ll already know how much it will cost—and that depreciation will be factored in, so you may be able to buy it at a “used” price, even though you were the only driver that used it.
Of course, whether or not leasing a Dodge Durango is a good idea depends heavily on the monthly cost of the lease, which in turn is dependent on issues like your credit score and the mileage you plan to put on it.
If you decide to go this route, you should compare the costs of purchasing a new Durango (including resale value, if you are not keeping it long term), a used Durango, and a lease over time.
How Does the Dodge Durango Stack Up to Other Vehicles?
The Dodge Durango has one major, and very critical, factor that isn’t in its favor: It’s an SUV. It’s simply a fact that SUVs have decreased in popularity as more people have become increasingly conscious of fuel economy and environmental impact.
With a highway rating of under 20 mpg, and significantly less for city driving, it’s not a vehicle that appeals to most buyers.
That means that it loses over forty percent of its value in the first two years, if you purchase it new, and nearly three-fourths of its value over five years.
Should I Buy a Dodge Durango?
Buying a new Dodge Durango is the right choice for many people, especially if they are planning to keep it over a number of years and have chosen it for the right reasons.
For example, if you need a vehicle with great towing capacity and handling, a Dodge Durango is still a great choice—it’s just not the best choice if you are planning to resell it within five years.
On the other hand, if you like the features of a Dodge Durango, but you don’t think you want to keep it long term, it might be a better idea to consider buying one that’s a couple of years old already.
That way, you won’t be investing in a vehicle that loses its value as quickly as one that’s fresh off the dealer’s lot.
The right choice depends on your particular needs and lifestyle. If you only need it for a year or so, leasing might be the optimal solution.
Take time to consider why you are interested in the Durango, your budget, and how long you intend to use the vehicle before you commit to purchasing it.