If you haven’t shopped for a car in a while, you might be surprised how expensive automobiles have become. Kelley Blue Book (KBB) says the average new car cost was $48,724 in 2024. Used cars are substantially less; the typical example cost $27,171 at the end of 2024, according to CarGurus.

Yet, pre-owned vehicles still cost about $5,000 more today than before the onset of the COVID-19 pandemic and the resulting turmoil in the car market. These factors underscore the importance of preserving the value of your current ride, even if trade-in plans are down the road.

One way to minimize the effects of depreciation is to keep your car in peak operating condition. If repairs are involved, this can involve expensive visits to the mechanic. However, savvy car owners can minimize this risk through an extended car warranty, more accurately called a vehicle service contract, from Endurance. Keep reading as we explore the resale value-friendly advantages of this warranty coverage after your manufacturer’s warranty expires.

The Importance of Resale Value for Car Owners

Your car’s resale value involves more than just its selling price. It’s a bottom-line number that impacts how much you can spend on a future vehicle, giving you greater financial flexibility. Yet, depreciation is hardly a precise formula, as many factors are involved. Not only does the make and model matter, but mileage, condition, equipment, and marketplace dynamics also play a role.

Let’s dive into depreciation more deeply by looking at average data for three popular cars. Here are the average estimated residual values from Car Edge, based on a new vehicle driven 12,000 miles per year and maintained in good condition.

Clearly, some vehicles are worth more than others. Much of this has to do with popularity because demand drives up used car prices. The Toyota RAV4 is the best-selling non-truck vehicle in the U.S.; the valuation numbers show it. Its five-year residual value of almost 75% is eye-opening when many cars (like the Ford F-150 and Jeep Grand Cherokee) can’t preserve half their original selling price.

In truth, vehicles with high residual values, such as the RAV4, are more the exception than the rule. It’s a fact that underscores the importance of minimizing depreciation regardless of what you drive. One could even argue that preserving residual value is especially vital in depreciation-prone cars to limit the eventual hit to the wallet.

What does this mean in real-world terms? Consider these scenarios:

• Planning to trade in or sell your vehicle within the next few years
• Using your vehicle as collateral for financing
• Wanting to preserve equity for future vehicle purchases
• Needing to protect against unexpected market value fluctuations

These are just some of the possibilities where resale value matters.

How Proper Maintenance Preserves Resale Value

Preserving your vehicle’s resale value starts with regular maintenance. These steps are outlined in the owner’s manual or service guide, but documenting all maintenance activities is an essential related task.

These upkeep efforts have the most significant effect on maximizing resale value:

• Oil Changes and Fluid Maintenance: Protecting the engine’s internal components from excessive wear and contamination is the number one maintenance priority for every car owner. The reason is simple: no engine equals no car. Regular oil changes using high-quality oils and filters ensure optimal engine performance and promote longevity. Other fluids, including those for transmission, cooling system, and brakes, also require ongoing attention.
• Tire and Suspension Care: Taking care of your car’s tires supports higher valuations and safety. Regular tire rotations promote even wear and extend tire life. Side benefits include improved stopping power and better handling, which can be helpful if a dealership is appraising your car for a trade-in or you’re selling to a private buyer. At the same time, don’t ignore keeping the suspension in top condition. An alignment is relatively inexpensive and helps preserve tire life and optimal handling.
• Brake System Maintenance: Maintaining your car’s brakes is an integral part of the resale value formula and a safety-critical activity. Brake pads need periodic replacement, and sometimes, the rotors must be changed (especially if you let the pads become too worn out). Inspection of the master cylinder and other braking system components should also be included.
• Interior and Exterior Care: Like it or not, buyers (including dealers) are sensitive to a car’s appearance. An upholstery stain or a large scratch is an instant turnoff and the surest way of driving down resale value. Regular washing and waxing prevent paint degradation and rust formation, while interior cleaning and protection avoid permanent staining and wear.

Most importantly, maintaining detailed service records provides evidence of your vehicle’s care history. This action should include keeping a log of any work you’ve done yourself, from washing and waxing to minor repairs. Keep receipts for supplies and parts, too. Each documented service visit or DIY activity builds a comprehensive maintenance history that can significantly influence a buyer’s perception of your vehicle’s value and reliability.

Does Resale Value Matter When Selling to CarMax or Carvana?

It’s natural to wonder about resale value if you’re considering selling your car to CarMax, Carvana, or similar cash-for-cars operations. Each company has its formula for calculating vehicle valuations, but none will pay any money until they inspect the vehicle. Some are more stringent than others, with CarMax being especially diligent about vehicle history and condition. In contrast, Carvana and some other firms tend to be more forgiving, which may be reflected in a lower purchase offer (which assumes some maintenance is lacking).

Avoiding Depreciation Through Timely Repairs

Ignoring a car problem often leads to more expensive service work. Understanding this relationship between timely repairs and depreciation helps protect your vehicular investment.

Let’s put this in perspective by citing some common repair scenarios, including some we’ve mentioned earlier:

• Delaying an oil change can increase wear on the pistons, cylinder walls, and other components. Internal engine repairs are among the most expensive types of service work a car owner must undergo.
• Disregarding squeaky brakes is the surest path to needing new rotors and paying for a substantially more expensive brake job.
• Ignoring a check engine light is a car owner’s biggest gamble. While the repair might involve something as simple as tightening a loose gas cap, the trouble can also involve something more serious, like an engine misfire or defective head gasket and four- or five-figure repair bills.
• Shrugging off an overheated engine is one way to guarantee that you will likely have to pay for a new cylinder head or other critical components.
• Failing to replace the timing belt can also lead to catastrophic engine damage. While no one wants to spend $500 to $1,000 for this work, it’s far better than paying $5,000 to rebuild the engine.

Expensive repairs also have a knack for taking a financial toll beyond the immediate hit to the wallet. A vehicle with a history of deferred maintenance and preventable repairs will suffer in the resale value department. Buyers, whether private shoppers or dealer staff, will be concerned about the reliability of a vehicle that screams “not well maintained.”

An extended warranty (also called an auto protection plan or vehicle service contract) can eliminate one major obstacle to getting repairs done sooner: cost. When unexpected repairs are covered, owners are more likely to address issues promptly rather than delay preventative work. This proactive approach helps maintain the vehicle’s condition and, indirectly, its value.

Endurance Warranty Plans Ensure Essential Car Repairs Are Covered

Because every car and vehicle owner is different, Endurance offers a range of comprehensive coverage options.

• Secure: Budget-focused drivers looking for core powertrain protection for the engine, transmission, and drive axles will find the Secure plan an ideal extended warranty.
• Secure Plus: Sometimes, peace of mind comes from knowing that the brakes, air conditioning, steering, and essential electrical components are also safeguarded. That’s the focus of the Secure Plus program.
• Superior: Endurance’s Superior plan layers in additional protections beyond Secure Plus by covering additional elements of the electrical, cooling, and fuel systems, as well as the suspension.
• Select Premier: High-mileage car drivers can confidently get behind the wheel thanks to the coverage offered by the Select Premier extended warranty. This program protects hundreds of parts for the powertrain and the electrical, air conditioning, cooling, and fuel systems.
• Advantage: Endurance’s innovative Advantage program includes extensive coverage and up to $3,500 in maintenance services—an ideal option for protecting your car and its resale value.

• Supreme: Enjoy the benefits of bumper-to-bumper protection – similar to a manufacturer’s warranty or factory warranty – with the Supreme exclusionary plan. This plan covers most components except for contract-defined exclusions.
• Supreme for Highline Vehicles: Owners of select luxury models can take advantage of near bumper-to-bumper coverage with the Supreme Highline plan.

How to Pick the Best Endurance Warranty?

With so many choices and customizable add-ons, finding the ideal Endurance auto protection plan comes down to focusing on your needs.  Think about these three critical factors:

• Price: Beyond the cost of coverage, consider Endurance’s deductible options. A zero deductible limits your out-of-pocket expenses for a covered repair, while a $50, $100, or $200 deductible reduces premiums.
• Protection: Do your homework to determine the typical problem areas for your car (no vehicle is perfect). Research owner reports on file with the National Highway Traffic Safety Administration (NHTSA), CarComplaints.com, and online car forums to zero in on where trouble is likely to hit and select an appropriate Endurance plan. Keep in mind that problem areas increase with vehicle age.
• Peace of Mind: Decide what comfort level you need from an extended auto warranty. If you can drive more easily, knowing you only need powertrain protection, opt for more essential coverage. On the other hand, if your concern involves multiple vehicle systems, then there’s no substitute for safeguards offered by the Endurance Supreme plan.

Increased Buyer Confidence with a Warranty History

A used car with a documented warranty history is worth more for several reasons, including:

1. A demonstrated commitment to professional maintenance and repairs
2. An assurance that the vehicle has been well-maintained
3. The ability to transfer an active contract to a subsequent owner (Endurance charges a small administrative fee to transfer coverage to a new owner)

The most significant concern with buying a pre-owned vehicle is the uncertainty about its upkeep. An extended warranty or vehicle service contract addresses these worries by telling prospective purchasers that, in the case of an Endurance-protected vehicle, a professional warranty provider stands behind the car. The Endurance claims process includes oversight of covered repairs to ensure quality replacement parts are used and industry-standard procedures are followed.

Ultimately, selling a vehicle with an extended warranty helps your car stand out among the 38 million used automobiles sold yearly in the U.S.

Additional Benefits That Add Value

While vehicle owners purchase an Endurance Warranty plan for confidence behind the wheel, customers also enjoy numerous perks that can ease the stress of car troubles.

• 24/7 Roadside Assistance: Every plan comes with support for towing, lockout help, tire changes, and other services. Help is a phone call away or easily accessible through the exclusive Endurance smartphone app.
• Rental Car Reimbursement: A breakdown doesn’t have to leave you stranded, thanks to a rental car allowance with more involved covered repairs.
• Trip Interruption Protection: A daily meal and lodging allowance for extensive covered repairs reduces the stress of car problems far from home.
• Choice of Repair Facility: Endurance customers can select any licensed repair facility, including specialty shops and dealer service departments, for covered repairs. For added convenience, Endurance has partnered with RepairPal to provide easy access to its vast network of certified repair shops and service centers.
• Elite Benefits: All Endurance are eligible for a free year of Elite Benefits valued at up to $2,000. Plan holders pay a small enrollment fee for access to tire repair and replacement services, key fob replacement, collision repair discounts, and total loss coverage.

Discover the Value of Endurance Warranty

Learn all the advantages of an Endurance Warranty plan by requesting a FREE quote or visiting our online store for instant plan and pricing information. Endurance plan advisors are also available by phone at (800) 253-8203.

Explore the Endurance blog for a library of helpful articles on DIY tips, automotive FAQs, vehicle maintenance, comparisons of warranty companies like CARCHEX and CarShield, and more.