Image From ..edmunds.com
When we buy a new car, we usually know what features and qualities our new vehicle must have, and then it's just a matter of finding the most agreeable price and financing to fit our budget...
But, how do we know if we're getting a good deal on our trade-in?
What about residual value? According to the Wall Street Journal auto industry research and information company Kelley Blue Book says consumers can take a big financial hit if they don’t consider how much their cars will be worth when they trade them in.
To help raise buyers’ awareness of resale value, Kelley released a list of the 10 new vehicles it expects to retain the highest percentage of their original sticker prices after five years on the road.
WSJ's Jonathan Welsh says depreciation is often biggest expense for owners during the first several years. According to Kelley, an average vehicle from the 2013 model year will retain about 38.2% of its original value after a five-year ownership period, which means a $50,000 new car today will be worth about $19,100 after five years.
The competition for Best Resale Value within many segments has become very heated in the last few years, as major vehicle redesigns and new model introductions have challenged the traditional favorites,” said Eric Ibara, director of residual consulting for Kelley Blue Book. “However, for the second year in a row, Toyota and Lexus retain the top Best Resale Value ranking for both non-luxury and luxury brands, based on the average 60-month residual value across all models in each brands’ respective lineup.”
So... which vehicles retain the most resale value? Here are the top 10 vehicles that retain the greatest resale value after five years:
1. Toyota FJ Cruiser, 63%
2. Toyota Tacoma, 57%
3. Jeep Wrangler, 55.4%
4. Honda CR-V, 50.7%
5. Toyota 4Runner, 49%
6. Toyota Land Cruiser, 49%
7. Porsche Cayenne, 47.3%
8. Lexus LX, 47%
9. Honda Civic, 46.9%
10. Scion tC, 46.5%