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.
In its annual Residual Analysis report, Kelley Blue Book said Toyota would have the best residual value across its entire lineup over the next 60 months, meaning vehicles from the Japanese automaker will depreciate in cost less over the course of a lease, resulting in lower monthly payments.
Its score improved by three percentage points since last year’s survey, and the report’s authors praised the company’s redesigned Avalon sedan and Tacoma pickup truck.
It was the third time in the past four years Toyota has claimed the top honor from KBB, despite issues with unintended acceleration and its popular Camry and Prius models recently receiving a “poor” grade in a new safety test performed by the Insurance Institute for Highway Safety.
“Enduring some of its darkest days in the U.S. market after unintended acceleration issues caused a massive worldwide recall of Toyota models, the brand managed to retain residual value levels consistent with its historical averages,” said KBB director of residual consulting Eric Ibara.
Honda was named Best Mainstream Brand for 2013 by ALG in its annual residual value awards. Its redesigned Accord sedan captured top honors in the closely watched midsize sedan category and the Odyssey took top minivan honors.
Since 2000, Honda has won ALG’s best overall award seven times.
“The Honda brand is a constant in ALG’s Residual Value Award history,” said Larry Dominique, president of ALG. “Honda has proven that it provides a compelling, high residual value package for consumers.”
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With the end of 2012 bearing down upon us, automakers have effectively shifted their lineups to all 2013 model year vehicles. What this means is that leftover 2012 vehicles that didn’t sell are being heavily discounted in order to make room on dealer lots for the new 2013 models.
Some of these cars have been redesigned for 2013, making them a completely different vehicle from what they were before. Others are simply a carryover from 2012. Even if a car has been redesigned for 2013, like the Ford Escape, the 2012 model is often still a very capable vehicle and a good buy, especially since you can likely bag one on the cheap.
We’ve found some great deals for you on outgoing 2012 models. Click through to see some vehicles are selling at steep discounts right now as dealers try to clear them off of their lots. If you can find one of these, you should be able to save a bundle.
MSRP: $15,345 – $20,595
Invoice: $14,918 – $19,727
Fuel Economy: 28 mpg City, 38 mpg Highway
Average Discount Off Of MSRP (2012 Model): 6.20%
Average Discount Off Of MSRP (2013 Model): 5.10%
TheHyundai Elantra is a compact car with handsome styling and nice lines. It has excellent interior space and standard safety equipment.
The current generation Elantra can seat up to five and has very accommodating trunk space. Two trim levels are offered: GLS and Limited. Both use a 148-hp 1.8-liter four-cylinder engine. A six-speed manual transmission is standard on the GLS trim, while a six-speed automatic with SHIFTRONIC is standard on the Limited trim and available on the GLS.
The Elantra was named North American Car of the Year for 2012 and was the AOL Autos pick for the best car of 2012 as well.
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MSRP: $20,590 – $32,950
Invoice: $19,746 – $31,600
Fuel Economy: 22 mpg City, 32 mpg Highway
Average Discount Off Of MSRP (2012 Model): 7.68%
Average Discount Off Of MSRP (2013 Model): 5.40%
TheVolkswagen Passat was all-new for 2012 and is the largest passenger car in the VW line-up. It has all the refinements and technology expected of a sophisticated German vehicle, but is now built in the USA specifically for the North American customer.
The Passat is offered as a front-wheel drive four-door sedan with three engine choices; a 170-hp, 2.5-liter inline five-cylinder, a 140-hp, 2.0-liter TDI diesel four-cylinder, and a 280-hp 3.6-liter VR6.
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MSRP: $36,725
Invoice: $34,400
Fuel Economy: 19 mpg City, 28 mpg Highway
Average Discount Off Of MSRP (2012 Model): 7.68%
Average Discount Off Of MSRP (2013 Model): 4.27%
Completely redesigned for 2013,Lexus ES 350 models from 2012 are selling at steep discounts in order for dealers to make room for the new inventory. If you can find one, you should be able to get a pretty sweet deal on the older generation of this Lexus.
The ES 350 sends power to the front wheels via a 268-hp 3.5-liter V6 mated to a six-speed automatic transmission. Safety features include dual front airbags, knee airbags, front and rear side-impact airbags, curtain airbags, electronic stability control, traction control, anti-lock brakes, electronic brake-force distribution, and a tire-pressure monitor system.
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MSRP: $21,250 – $34,850
Invoice: $20,530 – $32,720
Fuel Economy: 20 mpg City, 27 mpg Highway
Average Discount Off Of MSRP (2012 Model): 8.40%
Average Discount Off Of MSRP (2013 Model): 7.52%
TheSorento is Kia’s entry into the cross-over utility vehicle (CUV) segment. The Sorento features unibody construction and a streamlined, modern appearance.
The Sorento is available in front-wheel drive (FWD) or four-wheel drive (4×4) in five or seven-seat configurations. A 175-hp 2.4-liter four-cylinder, 191-hp direct-injection 2.4-liter four-cylinder or a 276-hp 3.5-liter V6 are the available engine choices.
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MSRP: $16,130 – $17,990
Invoice: $15,243 – $16,674
Fuel Economy: 27 mpg City, 34 mpg Highway
Average Discount Off Of MSRP (2012 Model): 9.10%
Average Discount Off Of MSRP (2013 Model): 8.10%
TheToyota Corolla is a front-wheel drive five-passenger compact sedan, well-known for being reliable and economical, yet refined and comfortable.
The Corolla comes in three trims: Base, S, and LE. The powertrain is a 132 horsepower, 1.8-liter dual VVT-I engine, matched with a five-speed manual or four-speed automatic transmission. All models come standard with front, side-impact and side-curtain airbags, ABS with brake assist, and whiplash protecting front seat active head restraints.
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MSRP: $21,440 – $28,120
Invoice: $20,315 – $26,180
Fuel Economy: 23 mpg City, 28 mpg Highway
Average Discount Off Of MSRP (2012 Model): 10.00%
Average Discount Off Of MSRP (2013 Model): 5.90%
Like the Lexus ES, theFord Escape was completely redesigned for 2013, making for some serious discounts on the 2012 models. Although the 2013 has been entirely revamped, the 2012 Escape is still a very capable and comfortable CUV.
The Escape is available in XLS, XLT or Limited trim, with either front or four-wheel drive. The XLS features a 171-hp 2.5-liter four-cylinder engine and five-speed manual transmission. The XLT and Limited trims feature the same 2.5-liter engine with a six-speed automatic transmission. A 240-hp 3.0-liter E85 capable V6 is an available upgrade on XLT and Limited models.
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MSRP: $20,550 – $31,200
Invoice: $19,699 – $28,904
Fuel Economy: 23 mpg City, 32 mpg Highway
Average Discount Off Of MSRP (2012 Model): 12.01%
Average Discount Off Of MSRP (2013 Model): 9.00%
TheNissan Altima was also completely redesigned for 2013, causing dealers to put some really great incentives on outgoing 2012 models. If you can find you, you should be able to bag a 2012 Altima on the cheap
The Nissan Altima is powered by either a 175-hp 2.5-liter I4 or a 270-hp 3.5-liter V6 and the transmission choices include a six-speed manual or continuously variable transmission (CVT). The Altima trims include: 2.5 (sedan only), 2.5 S and 3.5 SR.
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