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.
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.
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.
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 ba
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.
Both lease finance companies and owners trying to sell gas-guzzling trucks have been taking a bath on re-sale values of those vehicles. With so many trucks and SUVs suddenly showing up on auction lots and used car lots, the value of these vehicles has simply tanked as supply far exceeds demand. We've already seen exactly the opposite be true for smaller more efficient vehicles as people snap up nearly 20 year old Metros for up to $7,000.
In pretty much all of the past markets where nickel-based batteries were replaced by lithium-based batteries, the resale value of the nickel-based models takes a sharp nosedive when the lithium models hit the market. Will this same thing happen with hybrid automobiles equipped with the older battery technology? It's hard to say, considering that power tools and laptops are so different than cars, but it may be a cause for concern if some car makers continue pressing on with nickel technology whi
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.
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