If you’re keeping an eye on the value of your car, then you gotta know about the upcoming car shows. Every year the auto community rallies together for a number of major events where manufacturers pull silk sheets off their latest models to cheers of crowds and flashing cameras.
But when the new generation vehicles hit the dealerships, there is a domino effect on the value of older cars. Knowing about next year’s cars is key to understanding the future value of your current one.
What are some of the biggest car shows?
There are dozens of auto events around the world, but the king of car shows is undoubtedly the Internationale Automobil-Ausstellung (that’s the International Mobility Show to you and I), which is held in Germany and has a history dating back to 1897. Each year, more than half a million people show up to spot the latest car trends.
Over here in the US, the Chicago Auto Show is now the biggest— it recently overtook the North American International Auto Show in Detroit for the top spot (but that’s another one to keep an eye on). Around a thousand cars are rolled out at each event.
Heading East, the Tokyo Motor Show is another major auto show which is known for its futuristic concept cars. And, finally, the Paris Motor Show is an unmissable event for anyone who wants to keep a sharp eye on the latest in car design.
What will a new model do to the price of my car?
Some pretty fascinating math goes into figuring out how the release of redesign can affect older models. If you really want to dig into the numbers, we recommend checking out this report by the kind folks at the National Automobile Dealers Association (NADA). If you’re short of time, here’s a quick rundown of how it works.
Usually, a one-year-old car is worth 15-20% more than a two-year-old-car. But if you’re looking at a one-year-old car that’s been redesigned, you can comfortably add a 15-20% premium on top of that. That’s because a newer, upgraded car will hold more value, even if there’s still only a year difference between them. (And the just out of date one will suddenly seem a lot less desirable.)
How big the price difference is will depend on a few factors: the number of years since the last redesign, the amount of competition, and the quality of the design.
Overall, redesigns have the biggest impact on newer cars. The release of a 3rd generation model will have the biggest impact on the value of 2nd generation cars. First generation cars will still be affected, but the difference won’t be quite as dramatic.
Another factor is the scale of the redesign. If a new car is released with only small refreshes, then it won’t have a significant impact on its resell price—or have the same domino effect on the value of the generation that came before it.
What about really old cars?
Really old cars won’t be impacted quite so drastically when a new model comes out, but it’s still worth keeping an eye out for any signs of a redesign at the latest car shows—and consider selling before the new generation rolls out. If you want to check your current car value, we’ve got a handy tool to help you find out what it's worth in a matter of minutes. We’ll even make you a cash offer, instantly.