Autoblog

GM says boosted resale values could save $200M

Jonathon Ramsey — Tue, 02 Apr 2013 10:57:00 EST

Filed under: Car Buying, GM, Earnings/Financials

The average resale value of General Motors vehicles climbed to 44 percent last year, matching that of Chrysler and sitting one percent less than Ford, but still 7.5 percent less than Honda. It's a welcome increase from the post-bankruptcy days of 2009 when 36.5 percent was number upon which lease rates were based. According to Bloomberg, even though that puts GM in line with the overall market rate of 46.5 percent, the company figures it can save from $150 million to $200 million if it can increase its vehicles' end-of-lease value because it won't have to put so much cash on the table to entice lessees.

It won't be a quick fix, GM's North American CFO saying "The key will be great products and pricing and incentive discipline," as well as limiting how many vehicles get sold into rental fleets. It also wants the hot-off-the-line 2014 Chevrolet Impala to be part of the charge, planning to invert its sales chart so that 70 percent of deliveries go to retail customers instead of 30 percent.

GM says boosted resale values could save $200M originally appeared on Autoblog on Tue, 02 Apr 2013 10:57:00 EST. Please see our terms for use of feeds.

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How high-efficiency trims can actually reduce your car's resale value

Michael Harley — Thu, 03 Jan 2013 11:30:00 EST

Filed under: Car Buying, Earnings/Financials

Factory fuel economy packages, the special trims or option groups bundled with efficiency improving items such as low-rolling-resistance tires, aerodynamic tweaks and electric power steering, cost the consumer a few hundred dollars (or more) at the time of purchase but don't seem to add any resale value down the road, says a recent report from Cars.com.

Consumers are lured to the packages by the promise of an extra mile or two per gallon. While that does deliver minor savings on the monthly fuel bill (about five bucks, for the typical 12,000-mile annual driver), it is often nearly a decade before the initial investment pays for itself. Plus, experts say owners shouldn't expect to benefit from any price premium on their eco-equipped models when it comes time to sell.

As it turns out, calculating precise resale values on these special models is complicated. Not only are they low volume, but few are sold as separate trims (exceptions include models such as Honda's Civic HF and the Chevrolet Cruze Eco, pictured above). This means they aren't always differentiated on resale projections. Even when they are, the news isn't always good. In one resale study, the 2010 Kia Forte with the fuel-economy package was listing for $238 less than its standard sibling.

Further reducing the appeal of the high-efficiency trims is advancing technology. In most cases, redesigned vehicles deliver better fuel economy than their predecessors. Experts suggest that consumers consider fuel economy packages like upgraded audio components and navigation systems - expensive in the showroom, but obsolete and of little additional value down the road.

How high-efficiency trims can actually reduce your car's resale value originally appeared on Autoblog on Thu, 03 Jan 2013 11:30:00 EST. Please see our terms for use of feeds.

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Consumer Reports best value awards dominated by Toyota

Jeffrey N. Ross — Thu, 27 Dec 2012 15:44:00 EST

Filed under: Car Buying, Toyota

Each year, Consumer Reports compiles a list of the vehicles it expects to be the best and worst when it comes to holding their original resale value, and the list of best values for 2012 is, not surprisingly, dominated by Toyota products. Overall, the best value for 2012 is the Toyota Prius, while the worst car for the money is the BMW 750Li, according to the magazine.

The Prius knocked the Honda Fit from the top spot, which was the best value four years running, and it did so despite costing $10,000 more as tested. As CR points out, a higher price does not equate to less value just as a lower price does not guarantee a higher value. A total of 15 Toyota, Scion and Lexus made the list with only one, the Lexus GS 350, having a lower-than-average resale value. Volkswagen and Subaru pulled in an impressive amount of cars on the list, too. On the opposite end of the stick, Chrysler was hit hard with all seven of the cars listed (across the Chrysler, Dodge and Jeep brands) rated with a below-average resale value.

Scroll down to see the winners and losers for each category, but to view the full breakdown of the best and worst values on the market, a CR subscription is required.

Continue reading Consumer Reports best value awards dominated by Toyota

Consumer Reports best value awards dominated by Toyota originally appeared on Autoblog on Thu, 27 Dec 2012 15:44:00 EST. Please see our terms for use of feeds.

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Toyota tops Kelley Blue Book's Resale Value Awards

Jeffrey N. Ross — Tue, 27 Nov 2012 18:30:00 EST

Filed under: Car Buying, Chevrolet, Ford, Honda, Infiniti, Jeep, Lexus, Porsche, Scion, Toyota

Kelley Blue Book announced its annual Best Resale Value Award winners, and we weren't too surprised to see the list dominated by Japanese automakers - mainly Toyota and Honda. KBB hands out the awards based on the projected residual value of mostly all 2013 model year vehicles, and Toyota skated home with a number of awards including 10 of the 22 overall categories and having five of its products in the top 10 for models with best resale value. KBB's Best Resale Value Awards were announced in the same week as the ALG Residual Value Awards, and there were many similarities between both lists, especially when it came to Toyota.

To come up with its winners, KBB measures depreciation over the first five years of ownership, and looks for the cars it expects to hold its value the best after this time; on average, the report says the 2013 model year vehicles will lose 61.8 percent of its value in five years. Of the 22 categories, 15 slots were filled by Toyota, Honda and Nissan products, while the Camaro and Porsche (Cayenne and Panamera) each took home a pair of awards. If Toyota has anything to be upset about in this list of cars, it's that categories for Hybrid/Alternative Energy Car and Electric Vehicle went to the Ford Fusion and Chevrolet Volt, respectively.

The overall top 10 models for the best resale value in 2013 are, in alphabetical order:

Scroll down to see KBB's press release that includes a breakdown of all individual category winners.

Continue reading Toyota tops Kelley Blue Book's Resale Value Awards

Toyota tops Kelley Blue Book's Resale Value Awards originally appeared on Autoblog on Tue, 27 Nov 2012 18:30:00 EST. Please see our terms for use of feeds.

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Will fallout from Hyundai and Kia's MPG issues hurt resale values?

Jonathon Ramsey — Tue, 06 Nov 2012 19:01:00 EST

Filed under: Government/Legal, Hyundai, Kia

First came Hyundai's and Kia's corporate admission of guilt about overstating fuel economy numbers, then the recompense, then the lawsuits. Now begins the process of gnawing on every one of the consequences. In case you've only just returned from the International Space Station, Hyundai and Kia have admitted that about a third of the cars they have sold over the past three years have advertised inflated EPA fuel mileage numbers. For instance, the highway mpg number for the 2013 Hyundai Accent isn't 40 mpg anymore, it's either 37 or 38 miles per gallon. The combined mpg for the Kia Soul can take a four mpg hit depending on the trim level.

A piece in USA Today questions how the revelation will affect resale values for the Korean automakers, and the majority of opinions seems to be "not much." An analyst at Kelley Blue Book suggests there could be a short-term penalty, but that the impact might be mostly emotional, and industry watchers at the Institute for Crisis Management and ALG believe that Americans move on pretty quickly and the "absolute dollar" impact will be minimal.

When Consumer Reports compared advertised highway mileage to actual mileage it received, it found discrepancies from 11 mpg more (for the Volkswagen Passat TDI) to one mpg less (for the Hyundai Elantra, coincidentally), and Hyundai and Kia each had three vehicles that were spot on, including the Sonata Hybrid that achieved the company's advertised 40 mpg. Paradoxically, as consumers focus even more on EPA ratings and the government agency's testing protocols have been revised in an attempt to improve accuracy, people seem to be putting even more stock in the phrase "your mileage may vary." So too might your resale values, but it probably won't be because of this latest boondoggle.

Will fallout from Hyundai and Kia's MPG issues hurt resale values? originally appeared on Autoblog on Tue, 06 Nov 2012 19:01:00 EST. Please see our terms for use of feeds.

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Edmunds: Honda and Acura best brands for retaining value

Jeremy Korzeniewski — Thu, 19 Apr 2012 16:28:00 EST

Filed under: Car Buying, Acura, Honda

Honda and Acura have had their fair share of issues over the last few years - from earthquakes, tsunamis and floods to important new models not being all that well received - but that hasn't stopped them from claiming top honors in Edmunds' 2012 Best Retained Value Awards.

According to Edmunds, on average, Honda vehicles are expected to retain 47.9 percent of their value after five years; Acura is just behind with 44.6 percent, taking the win in the luxury segment. In the mainstream category, Toyota and Mazda each got honorable mentions while Lexus and Cadillac to secondary honors in the luxury stakes.

Interestingly, despite not scoring the win in the mainstream class or even managing an honorable mention, Ford had the most individual wins in Edmunds' categories with five, beating Honda's four class victories. The vehicle expected to retain the most value after five years out of all classes is the Toyota Tacoma.

Want more? Click here for the full rundown from Edmunds.

Edmunds: Honda and Acura best brands for retaining value originally appeared on Autoblog on Thu, 19 Apr 2012 16:28:00 EST. Please see our terms for use of feeds.

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Subaru and Lexus top ALG 2012 Residual Value Awards

Zach Bowman — Tue, 22 Nov 2011 16:31:00 EST

Filed under: Car Buying, Etc., Audi, GMC, Jeep, Lexus, Subaru, Volkswagen

ALG has released its annual Resale Value Awards. For 2012, Subaru took home the home the honor of being the top mainstream brand, while Lexus nabbed the top luxury automaker designation. ALG says that once again, Japanese automakers have performed better than their American and European counterparts when it comes to resale. Of the 21 total ALG awards, 11 went to Japanese manufacturers, though Audi bucked that trend by being the single automaker to take home the most awards. Domestic manufacturers, meanwhile, are scarcely represented in the honors. Only the GMC Acadia and Jeep Wrangler received nods for 2012.

ALG weighs each vehicle based on past performance, industry trends and segment competition. There were some surprises for 2012 - interestingly enough, ALG skipped the Toyota Prius in the hybrid/alternative powertrain segment in favor of the Volkswagen Golf TDI, and the Subaru Legacy took home the nod in the mid-sized category instead of either the Honda Accord or the Toyota Camry. Hit the jump for the full press release.

Continue reading Subaru and Lexus top ALG 2012 Residual Value Awards

Subaru and Lexus top ALG 2012 Residual Value Awards originally appeared on Autoblog on Tue, 22 Nov 2011 16:31:00 EST. Please see our terms for use of feeds.

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KBB 2012 Best Resale Value awards dominated by Toyota

Zach Bowman — Wed, 16 Nov 2011 19:13:00 EST

Filed under: Car Buying, Audi, Chevrolet, Chrysler, Ford, Honda, Jeep, Lexus, Toyota

Kelley Blue Book has announced the company's 2012 Best Resale Value Awards. The honors are handed out based on projections crafted by the KBB staff of automotive analysts for cars and trucks expected to retain the largest percentage of their original list price after five years.

For 2012, KBB has named Toyota as the best resale brand with Lexus taking the top honor in the luxury brand category. There aren't any surprises there, and the list of individual winners isn't likely to shake anyone's tree either. Toyota brands earned five category awards, while Honda alone took four categories, including sub-compact car, compact car, hybrid and van.

The Ford F-150, meanwhile, took home the full-size pickup nod and the only award for the Blue Ovals brands, while the Chevrolet Camaro V6 and SS snagged the sports car and high-performance car categories, respectively. There were a few surprises in the mix, however. The Jeep Wrangler brought home the only win in the compact SUV category and the only nod for Chrysler this year. The Audi A5 snagged the gold in the luxury car category and the Chevy Volt beat out the Nissan Leaf in the electric car category.

Kelly Blue Book says that residual value should be at the top of car buyers concerns when it comes time to bringing home a new model as depreciation represents the largest potential new-car expense. Hit the jump for the full press release.

Continue reading KBB 2012 Best Resale Value awards dominated by Toyota

KBB 2012 Best Resale Value awards dominated by Toyota originally appeared on Autoblog on Wed, 16 Nov 2011 19:13:00 EST. Please see our terms for use of feeds.

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Toyota tops Kelley Blue Book best resale value awards

Jeremy Korzeniewski — Thu, 03 Dec 2009 07:58:00 EST

Filed under: Car Buying, Lexus, Toyota

According to the experts-of-such-things at Kelley Blue Book, the average vehicle will only retain about 35 percent of its original value after the initial five-year ownership period, often making depreciation the greatest expense incurred by drivers over that time period. That's a hefty chunk of change to be sure, so a vehicle's anticipated resale value should be of prime concern when shopping for your next car or truck.

Since 2003, KBB has published its Best Resale Value Awards, which seek to inform consumers of projected resale value for any particular model after five years and 75,000 miles worth of service. Considering its historic reputation for quality, it comes as little surprise that Toyota takes home the trophy as the brand with the best projected resale value and that its subsidiary Lexus grabs the award in the luxury category. We have to wonder, though, how the company's many current woes might damage its perceived value down the line.

Making up the Top 10 Models for 2010 are the Audi A5, BMW M3, Chevrolet Corvette and Camaro SS, Honda CR-V, Mini Cooper and Clubman along with the Prius, RAV4 and Tacoma from Toyota. See here for a more comprehensive list and make the jump for the official press release.

[Source: KBB]

Continue reading Toyota tops Kelley Blue Book best resale value awards

Toyota tops Kelley Blue Book best resale value awards originally appeared on Autoblog on Thu, 03 Dec 2009 07:58:00 EST. Please see our terms for use of feeds.

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Remember that whole 'bankruptcy will kill GM and Chrysler residuals?' Not so much.

Chris Shunk — Tue, 14 Jul 2009 14:30:00 EST

Filed under: Car Buying, Chrysler, GM, Earnings/Financials

Back in late 2008, auto executives from General Motors and Chrysler warned of dire consequences in the event that one of their companies was forced into bankruptcy proceedings. With the help of the federal government, little of that doom and gloom materialized, at least when it comes to used car residuals.

Back in May, Automotive Lease Guide used impending bankruptcy as reason to slash the 36 month residuals of all Chrysler-branded products by a substantial 6% off the original retail price. That dropped the residual value of a Chrysler vehicle to an average of 28.8%, while Dodge and Jeep were at 31.3% and 32.5%, respectively.

Just one month later, with Chrysler's bankruptcy in the rearview mirror, and residuals are nearly back at April levels. Chrysler has climbed nearly four points to 32.5%, Dodge is at 34.8%, and Jeep is now at 37.4%. ALM admits that bankruptcy didn't effect residual values like the company thought it would, and as a result, resale values for GM-branded vehicles won't be downwardly adjusted.

Kelly Blue Book reportedly told Automotive News that some of the bounce-back in residuals is due to the fact that relatively low gas prices are making used trucks and SUVs a bit more appealing to customers. With new car sales in the tank, we suspect used vehicles have been in higher demand as well, helping to boost up residuals.

[Source: Automotive News, sub. req'd]

Remember that whole 'bankruptcy will kill GM and Chrysler residuals?' Not so much. originally appeared on Autoblog on Tue, 14 Jul 2009 14:30:00 EST. Please see our terms for use of feeds.

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Group says Chrysler resale value slips 6% in week following bankruptcy filing

Michael Harley — Thu, 14 May 2009 09:36:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep, Earnings/Financials

Tipping after Chrysler LLC filed for bankruptcy, the automaker's Dodge, Chrysler, and Jeep branded vehicles are facing rapidly dwindling resale values according to a research group. In a report by the Automotive Leasing Guide, secondary values are down an average of 6% across the board for most three-year-old Chrysler vehicles.

As an example, before the bankruptcy filing, a three-year old Jeep was worth 38.4% of its original sales price. After the announcement, Jeep values dropped to 32.4%. Dodge values went from 37.3% to 31.2% post filing, while Chrysler values, the lowest of the three initially (and nothing to really brag about anyway), dropped from 34.8% to a dismal 28.8%. In case you were wondering, three-year old Toyotas sell for about 45.5% of their original price.

[Source: UPI]

Group says Chrysler resale value slips 6% in week following bankruptcy filing originally appeared on Autoblog on Thu, 14 May 2009 09:36:00 EST. Please see our terms for use of feeds.

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Toyota's residual values seen falling more than competitors

Sam Abuelsamid — Mon, 16 Mar 2009 11:26:00 EST

Filed under: Car Buying, Trends, Toyota, Earnings/Financials

One of the strongest selling points that Japanese brand vehicles like Toyota and Honda have had going for them over the past decade or two has been the stronger resale values that have resulted from perceived higher quality. While increased depreciation doesn't matter much to people who buy their vehicles and keep them for more than a few years, it does hurt manufacturers. In recent years, a large portion of those pricey trucks and SUVs have been leased, where the monthly payments are largely based on the vehicle's expected residual value at the end of the term. When that residual is lower than expected, the automaker's financing arm loses money - a phenomenon that has been a particularly painful reality for Detroit's automakers.

Now, like the rest of the industry, Toyota is starting to get hit by falling residuals on both cars and trucks. Some of that is surely due to the general market conditions right now, but some critics suggest that the fact that Toyota's residuals are falling faster than other companies could point to growing awareness of quality issues. At the end of 2008, an average three-year-old Toyota was worth 46.5% of its original value compared to 50.5% two years earlier. Like other brands, Toyota's trucks have been especially hard hit, dropping from over 60% to just 45.4%. In particular, Tundra residuals are on a big downturn, nosediving to 40.1% from 59.5% just one year earlier. Despite the drop, the Tundra's resale value remains higher than Chevrolet's Silverado (39.8%, down from 49.6%) and Ford's F-150 (32.2%, down from 45.6%), so while all is not lost, the race for residual supremacy is getting tighter. Thanks for the tip, Leonard!

[Source: Automotive News - sub req'd]

Toyota's residual values seen falling more than competitors originally appeared on Autoblog on Mon, 16 Mar 2009 11:26:00 EST. Please see our terms for use of feeds.

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Maybach leads luxury segment... in depreciation

Noah Joseph — Tue, 03 Feb 2009 15:31:00 EST

Filed under: Car Buying, BMW, Maybach, Mercedes-Benz, Rolls-Royce

Anybody want to buy a used Maybach? Hello? The idea may sound entirely preposterous - an anathema, even, to the brand's nouveau riche market - but it may be the best way to get your hands on Mercedes' super-lux big brother. Of course that's the positive way to look at it, but the flip side is that, as demonstrated by recently released statistics, Maybach has the highest depreciation rates of any car on the market.

Over the course of the first year of ownership, a new Maybach 62S is assessed to lose a whopping $183k off its half-a-million-dollar sticker price. That's 39% off its purchase value in the span of a year, or roughly $500 every day. The Rolls-Royce Phantom, by comparison, loses "only" about $100k, or 24%. Slightly further down-market, things are even worse... by percentage, at least: a BMW 7 Series loses a tear-jerking 51%, and a Mercedes S-Class 47%. While depreciation is expected on a new car, this is bordering on depressing.

[Source: Automotive News Europe - Sub. Req.]

Maybach leads luxury segment... in depreciation originally appeared on Autoblog on Tue, 03 Feb 2009 15:31:00 EST. Please see our terms for use of feeds.

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Sorry, your SUV is now worthless

Michael Harley — Wed, 30 Apr 2008 08:58:00 EST

Filed under: Car Buying, Trends, SUV, Truck, First Drives

Thinking of trading your gas-guzzling SUV in for something smaller, a bit more fuel efficient? You are not alone. The rocketing cost of gasoline, and diesel fuel, is having a ripple effect on the SUV market. With consumers trading in their behemoths by the thousands in exchange for more frugal transportation, dealers are stuck with a surplus of unwanted sport-utes sitting on their lots with values dissolving.

Diesel-burning trucks aren't immune either. As diesel fuel costs hovering about fifty cents per-gallon above gasoline, some of the bigger oil-burning SUVs and trucks are losing measurable resale by the day. Overall, according to CNW Marketing Research, used SUV sales were down 14% in March alone. With any surplus, come big discounts. It may be a ghastly time to fill a 30-gallon tank on an SUV, but it is the perfect time to negotiate with a dealer for that seven-passenger family truckster you've been fancying. No need to hurry -- there will be an even better selection tomorrow.

Thanks to Jim for the tip!

[Source: U.S. News and World Report]

Sorry, your SUV is now worthless originally appeared on Autoblog on Wed, 30 Apr 2008 08:58:00 EST. Please see our terms for use of feeds.

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Best convertible resale value: Ferrari F430, followed by... VW Eos... diesel

Jonathon Ramsey — Mon, 04 Jun 2007 18:04:00 EST

Filed under: Car Buying, Convertible, Europe

It is well known by now that decisions made around convertibles don't follow rational rules. That's why Britain, a place with some of the least agreeable weather in the world, has made some of the most appealing convertibles ever seen, though perhaps not the most reliable. Convertible resale values are also not constrained by conventional wisdom: a study by EurotaxGlass found that in the UK, some mass-market ragtops hold their value much better than their more prestigious brethren.

Over a twelve month period in the UK, judged by trade value as a percentage of list price, a Ferrari F430 Spider maintains 97% of its value -- better than any other droptop. Next in line comes the VW Eos 2.0 TDI Sport, at 94%. They are the only two examples that manage to lose less than 10% of their value: the Porsche Boxster S and Mercedes-Benz SLK55 are both tied for third at 87%.

EurotaxGlass also reveals that while there are peaks and troughs in convertible values based on the time of year, hardtop convertibles are not so affected by them, which makes sense. But they also say dealers have reported buyers not wanting folding hardtops because then other people wouldn't know they were driving a convertible. According to EurotaxGlass, "It seems discreet coupe-convertible styling does not flatter the vanity of some owners." Click the link to get the entire list of residual values.

[Source: Gizmag]

Best convertible resale value: Ferrari F430, followed by... VW Eos... diesel originally appeared on Autoblog on Mon, 04 Jun 2007 18:04:00 EST. Please see our terms for use of feeds.

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KBB announces 2007 Best Resale Value Awards

John Neff — Mon, 04 Dec 2006 17:38:00 EST

Filed under: Car Buying

It's the oldest criticism of buying new versus used - drive that fresh-from-the-factory 2007 model off the dealer lot and instantly chuck 5 - 10% of your investment right out the window. The minute its front wheels touch Main Street USA your brand new car becomes used. This is why resale value is so important, as most vehicles only retain about 35% of their value after five years according to Kelley Blue Book.

KBB has just announced the winners of its 2007 Best Resale Value Awards, which should help shoppers make a more informed decision when looking for a car that will hold its value. Keep in mind, however, that these awards are given to 2007 models, the value of which over time is just being projected by KBB, so there are no guarantees.

Follow the jump to learn which models age with the most grace and remain highly valued.

[Source: KBB.com]

Continue reading KBB announces 2007 Best Resale Value Awards

KBB announces 2007 Best Resale Value Awards originally appeared on Autoblog on Mon, 04 Dec 2006 17:38:00 EST. Please see our terms for use of feeds.

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Yo Quiero Research Integrity: Kelley Blue Book partners with Taco Bell to talk residuals

Chris Paukert — Sat, 25 Feb 2006 14:00:00 EST

Filed under: Car Buying

Here's an odd one of dubious merit: Kelley Blue Book's marketing research division has partnered with Taco Bell under the guise of studying the effects of in-car eating on vehicle residuals. Yes, that probably bears re-reading.

The car valuation guide experts have teamed up with fast food's Gordita gurus on the thinnest wisp of a study-- to determine the depreciation costs that sloppy 'dashboard dining' has on a vehicle's resale value.

Their findings? According to a KBB official, "Our research highlights a huge misperception among consumers: that the interior condition of a car has less importance than the exterior in terms of residual value." Fair enough. But the fact that the press release then goes on to praise "Innovative companies like Taco Bell" for "...creating solutions for diners on the go with mess-free products like the Crunchwrap Supreme[TM]" sort of takes the intellectual sheen off this one, doesn't it?

Besides, crediting Taco Bell with creating "mess-free products" is a remarkable example of selective retention. After all, there's nothing tidy about a Chalupa, kids. Not before, not during, and certainly not after.

(Thanks to Nick @ Slashfood for the tip)

[Source: KBB.com]

Yo Quiero Research Integrity: Kelley Blue Book partners with Taco Bell to talk residuals originally appeared on Autoblog on Sat, 25 Feb 2006 14:00:00 EST. Please see our terms for use of feeds.

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