Honda and Toyota earn top honors in two annual residual value surveys
As you take the plunge on a new car purchase, it helps to know which brands hold their value the best.
Two recent surveys named Honda and Toyota as the brands most likely to hold their values in first five years of ownership.
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 separatel
Plug-in vehicle proponent are confident that whatever up-front cost premium a plug-in vehicle might demand, a lot of the extra dough will be recoupable after the vehicle has reached the end of its life. Whether it's to simply recycle the lithium or to repurpose the batteries for stationary energy storage, there are plenty of ideas on how to re-use that pricey pack.
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.
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.
The residual value of a car or truck can be a tricky proposition. The age, mileage, general condition and segment of of the vehicle makes a big difference in determining its value, and so does its brand. If you want a car with strong residual value, it wouldn't hurt to buy a Honda, as the Japanese automaker has won it's sixth consecutive Automotive Lease Guide residual award. Honda's Acura division joined its less expensive sibling for the first time by taking the top spot for luxury vehicles, t
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.
Due to a miserable U.S. car market, Detroit automakers are losing billions from lower than expected residuals on leased vehicles. Since the residuals on Motown metal are traditionally below that of the Japanese competition, many industry insiders thought that Toyotas in this country world were immune to the trend. It appears that's not the case. Toyota announced it had to "set aside major reserves for its first quarter to cover losses from vehicle leases in the U.S."
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.