Kelley
Blue Book, the leading provider of new and used vehicle
information, announces the all-new 2008 model-year vehicle winners of
its annual Best Resale Value Awards, which recognizes current and
upcoming vehicles for their projected retained value five years from
now (the average ownership period). Since depreciation (or loss of
value) is typically a car-buyer’s primary expense during ownership,
these awards, like all of kbb.com’s new and used vehicle information,
are designed to help consumers make more informed car-buying decisions.
Kelley
Blue Book’s Best Resale Value Awards are based on projections from the
Kelley Blue Book Residual Value Guide researched by an expert staff of
automotive market analysts. These prestigious awards honor vehicles
expected to maintain the greatest proportion of their original retail
price after five years of ownership. Low-volume vehicles and vehicles
with a Manufacturer’s Suggested Retail Price of more than $60,000 are
excluded from award consideration except in the luxury and
high-performance categories.
|
2008 BEST RESALE VALUE: BRAND |
|
Volkswagen |
|
2008 BEST RESALE VALUE: BY VEHICLE CATEGORY |
|
SEDAN: Honda Civic |
LUXURY:BMW 6 Series |
|
COUPE: Infiniti G37 |
PICKUP: Toyota Tundra |
|
CONVERTIBLE: MINI Cooper |
SPORT UTILITY: Acura MDX |
|
WAGON: Scion xB |
VAN / MINIVAN: Honda Odyssey |
|
HATCHBACK: Scion tC |
HYBRID: Honda Civic Hybrid |
|
HIGH PERFORMANCE: Chevrolet Corvette Z06 |
|
|
2008 BEST RESALE VALUE: TOP 10 MODELS |
|
Chevrolet Corvette |
Scion xB |
|
Honda Civic |
Toyota Corolla |
|
Infiniti G37 |
Volkswagen Eos |
|
MINI Cooper |
Volkswagen Jetta |
|
Scion tC |
Volkswagen Rabbit |
(All values based on the November/December 2007 Kelley Blue Book Residual Value Guide. Top 10 models appear in alphabetical order).
While
most car buyers today consider sticker price one of the most
significant numbers when choosing a new vehicle, the editors at Kelley
Blue Book’s kbb.com recommend that shoppers consider a number they
won’t find today on any window sticker: its resale value. Depreciation
often is the greatest expense incurred by drivers during the first five
years of vehicle ownership. An average vehicle will only retain about
35 percent of its original value after a five-year ownership period,
meaning that a $20,000 new car today will only be worth somewhere close
to $7,000 after five years. Vehicles with average or below-average
resale values are generally plentiful in the marketplace and easy to
find, such as models found in rental fleets. But certain vehicles are
projected to hold their value better than others. While much of a
vehicle’s resale value is based on supply and demand as well as current
and projected future market conditions, vehicles that maintain their value best are quality-built and generate consumer enthusiasm.
Vehicle
shoppers should take several factors into consideration when buying a
new car to ensure as much future value as possible. Certain features
available on new vehicles today will be desirable by a majority of
used-car buyers three to five years down the road, and these features
will help the vehicle maintain more of its original value than if they
were absent. First, car-buyers should choose a popular exterior color
such as silver, white, gray or black. Then, car-buyers should choose
optional equipment that is customary for the type of vehicle they are
buying. For instance, if you are buying a luxury sedan choose automatic
transmission versus a manual transmission. Equipment and options that
are popular with a broad spectrum of used-vehicle buyers include
antilock brakes (ABS), alloy wheels, audio system with MP3/iPod
compatibility, power-operated leather-covered seats, cruise control,
remote locking and navigation system. Car-buyers should also recognize
that the cost of some potentially expensive features like premium audio
systems will be difficult to recover at trade-in or resale time. The
same holds true for “custom” features and vibrant and/or less popular
paint colors.
“Choosing
a vehicle with a traditional or classic style will generally stand the
test of time when it comes to resale value and getting more for your
vehicle when you are ready to sell it,” said Jack R. Nerad, executive
editorial director and executive market analyst with Kelley Blue Book’s
kbb.com. “Vehicles with radical interiors and exteriors will likely
lose more of their value, as they will not appeal to the mainstream
public after five years.”
While
the company’s Residual Value Guide has been published since 1981,
Kelley Blue Book established its annual Best Resale Value Awards in
2003. Kelley Blue Book reports projections based on current vehicle
data, sales data, market conditions for each vehicle, competition
within vehicle segments, expectations of the future economy and the
combined experience of Kelley Blue Book’s team of market and pricing
analysts. Values reflect projected future wholesale pricing for clean,
reconditioned vehicles at the end of a five-year lease or ownership
period. Kelley Blue Book’s residual values are used by banks, financial
institutions, governmental agencies and the automotive leasing
industry.
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