• Dec 22, 2009
2010 Ford Fusion Sport – Click above for high-res image gallery

Residual values tell you a lot about a vehicle. If a car or truck has good quality and has plenty of customer demand it will have high residuals. If it's a lemon on wheels, clogging the rental lots, it will carry poor residuals. Detroit automakers have fared poorly in residual values for quite a few years, but it appears Ford may have taken a big step towards correcting that problem.

Ford is gleefully touting the results of the ALG January/February 2010 Residual Value Forecast for a good reason; the residuals of Ford, Lincoln and Mercury vehicles went up by $1,310 versus the January/February 2009 numbers. The residual values are based off of a formula that shows how much 2010 vehicles will be worth 36 months after purchase and Ford maintains the increase in residuals has a lot to do with the success of its latest redesigns and improved quality.

Proof of Ford's improved 36-month value scores comes in a comparison of the Fusion versus the Toyota Camry. The Fusion is now reportedly worth $687 more than the Camry after three years. The Ford Flex enjoys an even more decisive win versus the Toyota Highlander, as the boxy Blue Oval-branded wagon will reportedly be worth $1,800 more in three years. The 2010 Taurus scored the biggest increase, but not against the foreign competition. The smartly restyled sedan is worth $4,862 more after three years than the invisible 2009 Taurus. Both the Taurus and the Super Duty won the Kelly Blue Book Best Residual Value award in their respective segments.

A big reason Ford's residual values have skyrocketed in only one year is due to the automaker's improved status amongst customers. Fresh data from research firm Compete, Inc reportedly shows that the Blue Oval has surpassed Toyota in overall customer consideration for the past three months. Ford hasn't passed Toyota in Compete's customer satisfaction index since the firm began collecting data in 2002. Hit the jump to read over the Ford press release.



[Source: Ford]

PRESS RELEASE:

* The projected resale value of 2010 Ford, Lincoln and Mercury vehicles after 36 months in service increased by an average of $1,310 per vehicle compared to the 2009 model year – the industry's largest increase among full-line manufacturers
* The improvement allowed Ford to narrow the residual value gap with leading Asian automakers and maintain its advantage over U.S.-based automakers
* The 2010 Ford Fusion is expected to bring customers $687 more than the 2010 Toyota Camry after 36 months in service; the residual value of the 2010 Ford Flex commands an $1,800 premium over the Toyota Highlander
* Improved quality, new features and popular redesigned products are helping to boost Ford's residual values. Ford improved more than any other automaker in ALG's Perceived Quality Survey released in the fall of 2009
* Compete Inc., a Massachusetts research firm that studies online car shopping, says Ford has surpassed Toyota in customer consideration for the first time since it began tracking such data in 2002. Compete data show Ford surpassed Toyota in customer consideration in September, October and November

DEARBORN, Mich., Dec. 18, 2009 – Ford Motor Company vehicles, bolstered by improved quality, fuel economy and popular redesigned models, recorded the largest increase in residual values from the 2009 to the 2010 model year among full-line manufacturers.

The projected resale value of Ford, Lincoln and Mercury vehicles after 36 months in service increased by $1,310 per vehicle from 2009 to 2010 models, more than any other full-line automaker. This calculation is based on the straight average of all trim levels of each nameplate from ALG's January/February 2010 Residual Value Forecast with volume being weighted against R.L. Polk new vehicle registration data.

"We are very pleased that the quality and fuel economy our products are delivering is reflected in our residual values," said Ken Czubay, Ford vice president, Marketing, Sales and Service. "We know future trade-in value is a very important factor to customers when they are shopping for a new vehicle."

Ford already held a residual value advantage over its U.S.-based rivals. With the improvement in the 2010 model year, Ford narrowed the gap with leading Asian automakers, including Toyota.

Some Ford vehicles have now surpassed competing vehicles from Toyota in average residual values. The 2010 Ford Fusion midsize sedan, for example, is expected to be worth $687 more than the 2010 Toyota Camry after 36 months in service. And the residual value of the 2010 Ford Flex full-size crossover commands an $1,800 premium over the Toyota Highlander.

A steady stream of new products has helped boost Ford's residual values. For example, the redesigned 2010 Ford Taurus's projected average resale value after 36 months in service is $4,862 more than the 2009 Taurus. The Taurus was redesigned inside and out and features a host of new features and technologies.

"The ultimate measure of the health of an automotive brand is its residuals," said Waldek Raczkowski, Ford residual business analyst. "We have great new products with good quality, fuel economy and technology. We are pricing our vehicles properly and setting our volumes appropriately to meet market demand. This adds up to a significant increase in residual values."

The 2010 Ford F-150 earned the 2010 ALG Residual Value award in the Full-Size Pickup category, and the 2010 Ford Taurus and 2010 Ford F-Series Super Duty received Kelley Blue Book's kbb.com Best Resale Value awards for the full-size car and full-size pickup categories respectively.

In addition, Ford's improved products and brand image is translating into higher residual values. Compete Inc., a Massachusetts research firm that studies online car shopping, says Ford has surpassed Toyota in customer consideration for the first time since it began tracking such data in 2002. Compete data show Ford surpassed Toyota in customer consideration in September, October and November.


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  • 55 Comments
      • 5 Years Ago
      Also, SYNC has made my iPhone FREEZE-UP several times, and it was difficult to wrest control back afterwards. I don't even try anymore.
        • 5 Years Ago
        I'm curious - you can't press the home button to get back to the main screen? How do phone calls work in this setup? I'm curious as I'm this close >.< to pulling the trigger on a Ford with Sync and have an iPhone 3G.
      • 5 Years Ago
      Good for Ford... They've gone from nothing to something...but it's still not a leader in residual values by a long shot. It has one vehicle that is best in class for residual value (F150).

      Ford is still behind Mazda, Nissan, Toyota, Volkswagen, Honda, and Subaru in residual values. Write a press release when you actually rank against the industry leaders for retaining value
        • 5 Years Ago
        Make that 2 - Taurus.
        • 5 Years Ago
        "Write a press release when you actually rank against the industry leaders for retaining value "

        A dramatic increase is a huge accomplishment. Press releases let the public know how much better they're doing. That increases resale value.

        I don't get why Nissan and VW have high resale values. Their product reliability has always been below industry average. I guess it shows that reliability is far from the only determining factor.
      • 5 Years Ago
      Good going! Way to turn it around. Maybe I'll own a Ford some day after all...
        • 5 Years Ago
        Key focus on 'THREE' years. The so called domestic brands (American names, foriegn built or foriegn purchased) focus on the first five years, whereas the Japanese focus on the first TEN years. Which would you prefer?
        • 5 Years Ago
        Hom many mistakes can a person make in one sentence. I am writing about my post.
        • 5 Years Ago
        I think Ford did a good job although the Autoblog comparisons are very confusing...improvements in residuals should be reflected as a percentage of the original price of the car, not versus a totally different car that started at a different price. It doesn't make any sense to tell people that a Flex is worth more money than a Highlander after 3 years because you didn't say how much the average Flex cost versus how much the average Highlander cost when they were new.
        The Flex has a starting MSRP that's $3000 higher than the Highlander, so if they had equal depreciation it would always be worth more money. It'd be more useful if we know what the average cost of each vehicle was to start with otherwise it's pretty silly since a Mercedes S Class is also worth more than a Chevy Malibu after 3 years but that doesn't tell you anything about depreciation.
        • 5 Years Ago
        "That maybe, but Hyundai is coming out with all new Sonata in the matter of week, it will surly takes sales away from EVERYONE in the segment"

        Yea, that's what people said the last time the Sonata was redesigned. Everyone was saying it was the next Camry. Didn't quite pan out that way.
        • 5 Years Ago
        Yeah, and everyone has said the new Malibu and Fusion and Taurus will regain the sales title from Camry. Gee, wonder what the latest numbers look like...
      • 5 Years Ago
      That Fusion in the pic is the exact color and model I want. Ford is on a steady successful path and Toyota is unintentionally accelerating off the road...literally.
      • 5 Years Ago
      Kudos Ford.
      • 5 Years Ago
      "See how less crappy we are?!" But seriously, despite what my opinion is about predicted residual value & relaibility, it's still impressive. Keep doin what you're doin Ford.
      • 5 Years Ago
      Considering how incredibly LOW their resale values have been (based on what little we're getting with our Ford trade-ins at work), it's good for Ford, but still not impressive.

      My boss's edge was 2 years old and he got $7000 or something, while my nearly 5 year old MINI Cooper can still fetch $14000 LOL

        • 5 Years Ago
        I couldn't help myself. I looked up local pricing. The average two year old Edge is going for about $22K. What aren't you telling us about your boss's Edge?
        • 5 Years Ago
        Whoops. You slipped in while I was looking up pricing. You answered my second question.

        The miles must have been completely insane. Still doesn't make for a fair comparison though.
        • 5 Years Ago
        I never said "Ford Sucks", but I do dislike the Edge. The interior ergonomics are silly and pointless. The dash takes up an insane amount of room, and for no reason, with disturbing angles everywhere.

        Anyhow, the truth is, no matter what you say, that the Ford resale values are far from the top of the heap. MINI's are in the Top 10, and have been in the Top 5, and have been in the Top 10 since they came out. Fact. Through private sale, or given the prices seen on any used-car dealership's lot, one can resell it for a price ridiculously close to the price of new, even after many miles and many years. Not saying this is appropriate, but it is what it is.
        • 5 Years Ago
        Hahaha! The truth comes out! "My boss only got $7000 for his 2 year old Edge and it had 250,000 miles and a dead hooker stuck in the radiator. Ford sucks!!"
        • 5 Years Ago
        If your boss is selling a 2-year old Edge for $7K, give me his phone number.

        Assuming it wasn't in an accident.
        • 5 Years Ago
        He had an insane number of miles on it. I forgot to mention that part.
      • 5 Years Ago
      Good for Ford but wait for 5 years or more then see what the real scenario is . I have worked the automotive business for 10 years and it seems that for the first few years the domestics hold together ok then the last few seems to really 'show their age' . The Toyos and Honda for example do seem to hold together better after 3 to 5 years .
      Truthfully ,do we really need to hear Ford motor company's press hype?
      Wait and see.... Toyota is far from perfect but I would much rather have a 5 year old V6 Camry than a 5 year old Fucsion!
      • 5 Years Ago
      Resale value is largely determined by psychological factors, since all you can do is make an educated guess based on manufacturer history. Ford's had a recent spate of good news on reliability, safety, and public sentiment from not taking a bail-out, so this isn't too surprising. I'm guessing the Fusion / Camry difference will even out a bit as all of the news on the Toyota recalls fades away and the bail-outs are no longer news.
      • 5 Years Ago
      Impressive. Do they have data for 60 months out? I would imagine that high-mileage imports are still going to be considerably more valuable than equivalent domestics.
        • 5 Years Ago
        Ford Taurus 5 yr residual value 38% vs Audi 16% per kbb.

        However, the same source(s) indicate the imports are 20-30% points ahead in 5 year residual value for the 2006 cars...the only model year for which 5 year real life residual data means anything.
        • 5 Years Ago
        The Fusion is NOT a domestic, it is built in Mexico using Mazda platforms.
      • 5 Years Ago
      Part of this is definitely because of Ford's improved status with buyers. But is not a big part of the increase in the Taurus resale value because the Taurus costs more now?

      The never bought SE model is the same as before. But an SEL costs $800 more than before, a Limited costs $1.1K more than before and the SHO adds a new $5K more expensive range topper.

      And this is before you talk about options, which I think are are also more of now.

      Why don't they talk about resale versus what you pay for the car?
        • 5 Years Ago
        Exactly what I was thinking. Talking about resale values in absolute numbers is pointless -- they only make sense when discussed as percentages of purchase price. This is how one compares residual rates on a lease, for example.

        If Car A is projected to be worth $500 more than a direct competitor, Car B, in 3 years, wouldn't it be useful to know if Car A sold for the same price as Car B or if it cost $500 more to begin with?

        This is a news story about nothing unless they provide all the facts and figures.
      • 5 Years Ago
      train keep a rollin'
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