sotiri

How Much Is Your Car Worth?
Acura, Honda Pass BMW in Resale Value;
Pontiac Solstice Is Only Domestic Model in Top 10
By GINA CHON
November 29, 2006; Page D1

Sister brands Honda and Acura topped the latest list of vehicle brands with the best resale value -- an important measure for upscale car buyers -- edging out longtime leader BMW.

Volkswagen, which moved up to No. 2, and BMW and its Mini brand, tied for third, also earned high marks in Kelley Blue Book's survey for the 2007 model year, as foreign brands took almost all the top honors.
[2006 Acura TSX]
2006 Acura TSX

Kelley Blue Book expects Honda and Acura's latest vehicles to retain nearly 56% of their original retail price in five years. VW and BMW/Mini vehicles trail by less than a percentage point. By contrast, vehicles with low resale values retain just 18% to 24% of their original prices.

A good resale value can improve the perception of a brand; the nameplates that have strong resale values, like Honda and Toyota, have been gaining market share in the U.S. For car shoppers, a strong resale value reduces the total cost of ownership for a vehicle, as an owner can get more for the vehicle when it is resold. But strong resale values also tend to push up lease rates, making some brands less affordable.

Ford Motor Co. brand Land Rover came in fourth, and Porsche AG rounded out the list of the top five brands. Toyota Motor Corp. brands replaced Porsche in the fifth spot when vehicles produced in low numbers were excluded.
BEST BY CATEGORY

[.] [Best by Category]
These 2006 models had the best resale value in their category:
• Sedan: Acura TSX

• Luxury: BMW 5 Series

• Coupe: Honda Civic

• Pickup: Toyota Tacoma

• Convertible: MINI Cooper

• Sport Utility: Acura MDX

• Wagon: Volkswagen Passat

• Van/Minivan: Honda Odyssey

• Hatchback: MINI Cooper

• Hybrid: Toyota Prius

MORE

• The 2007 vehicle brands with the best resale values were Honda/Acura, Volkswagen, BMW/Mini, Land Rover and Porsche.

• Honda and Acura vehicles are expected to retain nearly 56% of their original retail price after five years of ownership.

• Vehicles with low resale values retain just 18% to 20% of their original prices.

• Plus, see a list of the ten 2007 vehicles that are expected to have the best resale value in five years.


Kelley Blue Book also listed the specific models with the best resale values, including the BMW 5-Series, the Honda Civic and the Toyota Prius hybrid. The Blue Book's top 10 models are expected to retain 48% to 56% of their original sales price after five years of ownership. Despite quality improvements, only one domestic model made that list: the Pontiac Solstice, a hot convertible -- new in 2006 -- that General Motors Corp. has made in low quantities.

Resale value is partly a function of consumers' perception of the brand. Volkswagen improved its resale value this year because of its popularity among younger buyers and enthusiasts.

But it is also strongly affected by companies' success in keeping the number of cars on the market balanced with demand. Honda and Acura, both owned by Honda Motor Co., nabbed the top spot this year by keeping a tight rein on incentives such as cash rebates and on the number of cars they sell to rental fleets.

"Honda and Acura have been doing a great job for a long time," said Jack Nerad, editorial director of Kelley Blue Book. "What they are really doing is matching up their production with demand."

BMW AG spokeswoman Martha McKinley said while BMW would have liked to retain the top spot, BMW vehicles still made the top of several categories, including best resale value for a luxury sedan, which went to the 5-Series.

The vehicles with the lowest resale value include the Chrysler Sebring, the Ford Freestar, the Kia Sedona and the Lincoln Town Car. Detroit's Big Three have struggled to stop overproducing many of their cars, which generally forces the auto makers to pile on discounts -- which in turn undermine resale value down the road.

Saturn, Cadillac and Pontiac were the top domestic brands.

GM, Ford and DaimlerChrysler AG's Chrysler Group have all been forced to cut production this year because of lower-than-expected demand for pickup trucks and sport-utility vehicles.

"It's about rationalizing the production process," Mr. Nerad said. "They are making those attempts with plant closures and other efforts, but it doesn't happen overnight."

Ford spokesman Jim Cain said the company was closing the resale-value gap, partly by improving quality. He noted Ford's high marks in the latest Consumer Reports 2006 Car Reliability Survey.

To improve resale value, he said, Ford was producing vehicles with more appealing, exciting designs, was adding more standard features and had extended warranties. Carefully managing rental-fleet sales "is also part of the equation," he said.

Bob In Miami

Just saw in Kipplingers the RL resale value was worst among $50K plus vehicles showing 3 and 5 year values at 47%/29%. Ouch! Will know the truth in 3 to 5 years.

Bob

neuronbob

OK, I'll ask the obvious. Where does the 2G RL fit in this scheme, according to this?

According to Edmunds, the resale value in five years on a 2006 base RL will be about 50% (Given $49.5k MSRP/$24681 depreciation over 5 years).

Not bad for a car that's had to be discounted to be sold.

Perhaps adding the base model for 2007 will help resale a bit.

Bob In Miami

Someone here recently bought an RL for about $34.5K with a private party sale. What do you think the wholesale value is? Although we know the RL is a terrific car, the general automotive press bashed it pretty hard from the get-go. I think resale values will probably be more along the lines of Kipplingers.

Bob

Bob In Miami

Also....when I purchased my car in October, the dealer had a used '06 RL with the tech package with 8000 miles on it and his first asking price was $39.5K.

Bob

lumpulus

One of the many reasons I've bought Acura/Honda since 1984.

neuronbob

We posted at the same time, so I didn't see your comment on Kiplinger's.

Yiiikes!

I'd better plan on keeping my RL much longer than usual (2-3 years has been my usual lately). Good thing I like it.

GoHawks

Where did it get bashed? Every review I saw from Motor Trend, Car & Driver, etc. praised it.

Bob In Miami

All of them say nice car, BUT:

1) No V-8
2) Too heavy
3) Sluggish off the line
4) Lacks low end torque
5) Interior noise levels too high
6) Steep learning curve to electronics interface

The big one is always a lack of low end torque. Did you see the video posted by a Brit about the Legend (http://www.youtube.com/watch?v=tIy1V0QSWmo)?

Now I don't agree with any of this silliness, but except for initial positive reviews, the auto press now just ignores the car.

Bob