• Mar 20th 2007 at 9:50AM
  • 21

Buying a new car or truck can be a very expensive endeavor. Style, safety, and reliability are usually at the top of shopper's lists, but the one area that will get you in the end is the all-important resale value.

Some vehicles, like the Honda Odyssey, hold their value extremely well, even after five years. Owners of the Dodge Caravan aren't nearly as lucky, with resale values after half a decade of ownership at a paltry 24-percent of the sticker. As Forbes' Dan Leinert points out, however, the Caravan actually scores quite well in JD Powers studies, so the horrendous resale value can be accounted for when considering the large incentives that are used to move hundreds of thousands of Dodge minivans off dealer lots.

Most of the other vehicles on the list have either gone a really long time without an update, like the Crown Victoria, or are just plain lousy vehicles, like the Kia Amanti. Either way, if your vehicle appears on the "Losing Value List," we'd suggest you hold onto it -- for a while.

You can see the list of the biggest losers after the jump.

[Source: Forbes]

Biggest Depreciatiators over 5 years

Buick Ranier - 26%
Dodge Caravan - 24%
Dodge Durango - 23%
Ford Crown Victoria - 22%
Ford E-Series - 23%
Kia Amanti - 27%
Kia Spectra - 27%
Mercury Grand Marquis - 23%


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    • 1 Second Ago
  • 21 Comments
      • 8 Years Ago
      Re-sale values are very deceptive numbers, as the vehicles value after five years is calculated against its original MSRP, not actual selling price. Once rebates, incentives and lower interest payments are figured into the equation, the difference in out of pocket expenses from brand to brand aren't quite as extreme as these numbers would indicate.

      Edmund's True Cost To Own calculations show this, as the cost to own (including depreciation) a Grand Marquis is .02 per mile more than an Accord ($45,230 out of pocket expense for the Grand Marquis vs. $43,794 for the Accord). When compared to the Avalon, which is closer in passenger volume to the Grand Marquis, the Mercury is actually .06 LESS per mile to operate over the five years.
      Bryan
      • 8 Years Ago
      The 3 Fords on here are sold heavily to fleet. They are kept more than 5 years and go to 150k-200k miles before being sold. The Grand Marquis I think is actually sold to more retail, but I have seen quite a few Grand Marquis taxi cabs. Being mostly fleet, its easy to see why they would be bottom on the list, but it really does not matter because these vehicles are kept well passed their payoff dates. Therefore, resale really is not a big issue. The Caravan probably falls underneath this as well. The sad part is for Kia since their primarily non-fleet models do worse than high-fleet models such as the CV. At least in this article. I don't listen to resale value, because quite honestly I do not care. I plan on keeping my f150 forever, and buying something new once it is paid off.
      • 8 Years Ago
      GM, Ford, and the Chrysler Group are in control of their own resale values. If they're worried about the effect of resale value figures on perceived quality (and they should be), they need to give up the cash-on-the-hood game and set the MSRP realistically. (Never mind the negative impact on perceived quality that up-front cash discounts have...)

      They all said they'd give it up, and for a while it seemed like they got it... but they've all put cash on hoods in the last six months.
      • 8 Years Ago
      Saving big $$$ on cars...

      1. Research & buy the best example you can find of a 2-3 year old model you actually like. Pay 50-70% MSRP.

      2. The car is young enough for you to influence its longevity. Keep it for 10+ years.

      3. During years 5 thru 10+, pay no attention to the Jones' new car. Get a book about "wabi sabi", have your wife read the book too.

      4. If you have teenagers at this point, appeal to their nostalgia for childhood. Pawn the car off on one of them. Act as though YOU are doing the favor.

      5. If you haven't spent all your savings on trips to Banff, or medical bills for your kid, you'll have enough cash saved to buy another new(ish) car of your choice, maybe even a Bugatti Veyron.
      • 8 Years Ago
      I simply refuse to believe that the domestics aren't as bad in resale as everyone is to believe. I read about their poor resale value on TLAC site all the time, so it must be true! And they (at least the site leader) want American cars to succeed (stated such on the site) and I can tell this is true the way they take the "father who belittles their kid to do 'better'" tactic day after day after day to teach GM and Ford how to do it right! What better way? It is so cute how they are so constructive (just like that cliched father) and not destructive in any way. Isn't the father who does that usually trying to make up for lack of greatness on their own part? Naaaaawwww.
      • 8 Years Ago
      wetstuff---> Your ignorance shines through in your post. Most Linclon LSs were sold in the SUBURBS. You might be thinking of the Navigator. Very popular in the ghettos before the Escalade took it down. The '03 thru '06 LS is a sweet car, I wish the cabin was better able to isolate the wind noise. otherwise, It is a better ride that my 99 A6, or any of the 4 toyotas that I previously owned.

      I was looking at the S-Type Jag, but bought the LS instead, pretty much the same car (down to the brakes) for less money. It is a better riding car, with more room for less money.

      Other Cars I looked at:

      Infiniti I35
      Nissan Maxima
      Toyota Camry
      Lexus ES 350
      Toyota Avalon

      Liked the ES best of the rest, but since learned that the ES is one of Toyota's potential sludge generators. Again I say, no regrets obout buying the LS.

      I loathe IDIOTS that open their shyt-holes and spew stereotypical rhetoric. Get an education JACKASS.
      • 8 Years Ago
      Resale = perception, plain and simple. If average joe believes a toyota is automatically better than a gm, then he will pay more for it. Most of the cars made by all the major car companies are pretty darn good and this difference will only be shrinking with some of the anticipated cars, like the g8, malibu, camaro, etc. And that's not a knock against Toyota or Honda either, they make really good practical cars as well. But this isn't the 80's like the mainstream public thinks when American and Japanese car companies.
      • 8 Years Ago
      MK is correct. We bought our grand caravan loaded at roughly 75% of list new. so with a 24% resale of list, depreciation is only 1/2. From purchase price, I am at 33% at 5 yrs, probably not stellar but not horrendous. Figure a lifespan of 10 yrs and I get the best 1/2. 33% isnt terrible.
      • 8 Years Ago
      A FEW MORE POINTS...
      1-- "drive it until it is junk" is fine in the abstract, but, until the recent quality improvements, a Camry or Accord was good for about double what many domestics would go before needing many expensive repairs, I think this is different now. I tell people "drive it until so much is going wrong that you are facing too many reliability issues" -- and I also advise asking your mechanic to alert you of typical upcoming repairs to your make and model.

      2-- Business in not sorcery -- The UAW cost difference the 3 US makere have stuck themselves with has to be partially paid for by cutting corners in the product. (and if they cant make the same markup as the foreign brands, they are eating themselves up, losing competitive advantage)

      3-- Resale is largely driven by consumers' perceived value -- it will take many years to counteract the position that Honda and Toyota have established. (I point out that I am no Japanese fan, just realistic)

      4-- I tell friends to look for an "almost as good",
      but not as popular" used car, for a better price. In the past, this meant a Mazda or Nissan rather than a Honda or Toyota, for instance. Next year, a 2005 Fusion might be a better buy than a 2005 Accord.

      5-- Ultimately, if you have "just gotta have" a certain car, you pay what it costs. Fortunately, desireablity can lead to higher resale,SOMETIMES. (I paid about $19,000 for a new 89 Mustang GT convertible and sold it for $2400 in 2004, with 125,000 miles)

      6-- The US makers owe the public cars whose new and used saleability is excellent because the venicles are excellent. Big steps have been made, more to go, and PLEASE no excusing them for merely cleaning up old models -- we should have the best cars made in the world for our market.
      • 8 Years Ago
      The other Bob - I do not think you have to drive a car until it's junk in order to be financially responsible. There is always a quality of life / financial tradeoff, which is how we define Value. As your "junk" car ages and your cost of repairs rises and your enjoyment and comfort decrease, you fall on the losing side of the value curve. And I would call your logic into question at that point.

      Of course, there is nothing wrong with driving a junk car. I just wouldn't say that it's universally "smarter" than driving a newer car.
      • 8 Years Ago
      The shell game played by the imports played on a self-absorbed nation of idiots.

      I. It should come as no news to anyone who posts here that DCX's huge inventory backlog would destroy the resale value of their products.

      II. The world and more specifically the USA is full of idiots, that are willing to spend 10s of thousands of dollars on a preception, instead of doing some research.

      III. Other than what I've read here, and other trade publications, I have bearly heard a peep out of the mainstream media about the sub-standard junk that Toyota and Honda have been selling.

      IV. That Toyota decieves the general public, by labeling their recalls as "Service Bulletins".

      That aside, all the cars on this list deserves to be there. I wouldn't buy any of them brand new without a deep discount off sticker. People however, need to look at every car individually. Instead they take the worst of the lot of American cars and make them the poster boys of the entire industry.

      I adbolutely love my '04 Lincoln LS, and would buy another, before I buy any appliance from Toyota. The Zephry/MKZ that supposedly replaces the LS is not even in the same class. (Ford's Luxury division produces an economy class knock-off). Cadillac here I come.
      Thomas C.
      • 8 Years Ago
      You know I could'nt care less about resale value because every car i have ever purchased i have had it atleast 10 years and have put over 250,000 miles on them....

      Personally i don't trade vehicles every year..
      So resale value does'nt bother me...

      And i have always owned Mercury Grand Marquis' and they have always provided me with great service...
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