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The Automotive Lease Guide has just released its annual report of residual values. Thanks to slimmed production and lower incentives, both Ford and Chevrolet saw jumps of 11 and 7.5 percentage points, respectively, compared to five years ago, and a number of other manufacturers saw the worth of their products climb as well. Ford's passenger cars managed to rank second in the highest improvement since 2005 with a residual value of 48.8 percent. Both Ford and Chevrolet trucks are counted separately in the survey because of their disproportionately high residual value.

Both Suzuki and Hyundai found themselves on the top five list of improved residual value with 12.6 and 9.1 respective percentage point jumps over 2005 – healthy numbers. But for as much as those brands have improved over the last half decade, others, like Porsche, Volvo and BMW have seen their numbers fall.

Porsche has taken the biggest hit, with the company's residual value falling to 44.4 percent – an 8.2 percentage point drop since 2005.

[Source: Automotive News]
Photo by Drew Phillips, Copyright ©2010 Weblogs, Inc.


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    • 1 Second Ago
  • 30 Comments
      • 4 Years Ago
      Great to hear, great to hear. I want a new Mustang.
      • 4 Years Ago
      Interesting that it states here that the Ford and Chevy trucks were excluded for higher residuals, yet the "residual values" link above has them rather low (from a massive fall).
      • 4 Years Ago
      Good article on residuals -- finally someone who actually understands them.

      A low residual is not a bad thing IF the depreciation is reflected in a lower price for the brand NEW car. My Neon (SX 2.0) .. MSRP was $19,988, and I bought it for $14,300 for CASH (if I took the financing option I would have paid a lot more, like my first 2 Neons .. live and learn). So yeah .. the car is worth 30% the moment you drive it off the lot .. but that 30% is sitting in your bank account still.

      They are right about leasing though .. I am not a great fan of leasing as those contracts are like Cellphone Contracts to a degree -- they can hold you hostage to penalties etc.

      That part that is REALLY interesting is that the best and worst are only about 10% apart -- wow! So say Toyota with close to 0 off the MSRP (or maybe they even paid more); gains actually very little as most domestic brands you easily get 10% off the price for CASH (rebate instead financing package).
      • 4 Years Ago
      FTA it appears Toyota has remained flat from 2005 at 51%; given the recent spat of events, i'm sure Toyota is happy to just break even.

      I'm sure Sergio Marchionne is none to thrilled to see that Chrysler is sitting bottom of the barrel with 39.4%. Lets hope they get some new product on the lot ASAP.
        • 4 Years Ago
        I'm sure Marchionne isn't even a tiny bit surprised, he knows what an awful lineup they're pushing in the US at the moment, they're just trying to keep the lights on until they have decent product to offer in the US market.
      • 4 Years Ago
      Looks like I got in under the wire then. We just picked up a 2009 ltd AWD flex with 12k miles for 27k US. Great ride though.
      • 4 Years Ago
      Glad to see BMW's flock of unreliable over-techno-ified bulbous unreliable monstrosities is beginning to show it's weakness in tangible numbers. 2005 is what, the second year of the Banglefied 5 series and right before the 3? Sound about right.....
        • 4 Years Ago
        You're absolutely right, and this does not affect the wealthy reputation seekers that are their modern customer base. However, us enthusiasts who loved our first Bimmers and rode them to the moon and back because to us, they were more than just conveyance are increasingly disappointed as the marque we once loved kicks us to the curb. I could take apart most everything on my old E34 and put it back together and really didn't need to that often. This may not be bothering them now but eventually their reputation will suffer. And this is not just a BMW problem. We're approaching a critical point generally where automobile complexity is reducing them as viable long term objects of affection. I'd have much more faith in an '84 Civic with 200k miles than a '06 with 90k for example.
        • 4 Years Ago
        When researching them used I found that BMW's have what I call "hot potato" syndrome. That is, as they approach the age/mileage when serious mechanical problems can arise they take a sudden lunge downward in value, after having previously held value pretty well. I think this is due to nobody wanting to own the car as it ages past 100,000 miles. Because even though the majority will run strong way past that, the price of a catastrophic trans/engine failure will make the car a near write-off. Most guys looking at $18,000 7 series do not feel like spending $7,000 on it later.
      • 4 Years Ago
      That is a sweet looking Mustang...

      -McM
      Carlos
      • 4 Years Ago
      What a concept, make great, reliable cars and they keep their value.
        • 4 Years Ago
        @Carlos
        no, the better news is that if you buy a slightly used porsche you can get it for 44% off!
        • 4 Years Ago
        @Carlos
        Sonata has the best 4 year residual. just 5-6 years ago, it was the worst. mad props to hyundai.
        • 4 Years Ago
        @Carlos
        As an American, I am not as much worried about Ford or GM than I am worried about Chrysler. It looks like they've been going DOWN since last 5 years. T___T; Damn it, jump out of the craphole you are in already

        Hyundai/Kia is expected (Hyundai is the 80's Toyota/Honda now, they are just fantastic right now), Suzuki is a little surprising due to the fact that they sell so little here in the states. Ford is I'd say best American car company of this decade, only if GM shines its quality of Cadillac in to their Chevrolet... Not saying they are bad at all, though =P
        • 4 Years Ago
        @Carlos
        Something the badge youre wearing has yet to learn!
        • 4 Years Ago
        @Carlos
        scratch that, i cant read. 55% off!
      • 4 Years Ago
      I think it also has something to do with the fact that they're less Fords in the rental lot nowadays.
        • 4 Years Ago
        Fleet doesn't just include daily rental fleets. It also includes corporate and small business fleets that tend to hold on to their vehicles for much longer than daily rental. While not discontinuing sales to daily rental fleets, Ford has cut back.
        • 4 Years Ago
        they recently said they are still committed to fleet and plan to cap it eventually at 25%. Maybe that is the issue here (canada). Our flex stickered for 46k here and less than a year later we got it for ~28,500cdn (27k us).
      • 4 Years Ago
      Now, how is this measured?

      Is this current residual value of cars made previously?

      Or is this some sort of formulaic extrapolation of future residual value of cars that are new right now?

      I would hope it is the latter, because with the former, the cars that were built years ago, haven't changed, aside from getting older. They are what they are.
        • 4 Years Ago
        The mechanicals are what they are, but their market value is heavily influenced by perception. Honda's resale values are crazy high because they are the default choice for a lot of shoppers, and the dealers (logically) refused to negotiate on price. Now that people are more likely to cross-shop a Ford, the resale value disparity is shrinking.
      • 4 Years Ago
      Funny thing, Acura. They just ran a commercial two days ago about resale value, touting there residual was an industry best. They are on the list of biggest value losers. Oops.
        Carlos
        • 4 Years Ago
        The higher you are the further you can fall.
        • 4 Years Ago
        Despite Acura's 2 point drop they're still pretty strong at a 51.8% 36-month residual. That's higher than BMW, Infiniti, Mercedes-Benz, Porsche, Volvo, etc.
      • 4 Years Ago
      Kudos to Ford.
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