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Toyota tops Kelley Blue Book best resale value awards

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

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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