Rocketsfan

I don't see this posted anywhere, so forgive me if it's old news.

MSN has posted the following article :

http://moneycentral.msn.com/content/...car/P71881.asp

in which the Acura TL has been ranked among the cars holding their resale value the most after 5 years by edmunds.com. This is data on the previous TL more than likely, but still...

In all honesty I didn't consider resale value much when picking my TL over the car I originally wanted for so long - the G35. I tend to put 130k on any car I own (this is my 3rd car) before getting rid of them.

Another reason to buy a Honda/Acura...

danno

Just read that this morning

Formula 350

Rocketsfan,

First, how about them Rockets YEA....

I digress, I am like you, I buy a car and hold till the wheels fall off so I do not think about resale that much. However, as someone pointed out to me once (and it is why I consider it a bit), 'what if your car gets totaled?'. If it does, you do want the highest resale value to get the biggest check from the insurance company to help defray the cost of your new ride.

naresh

This is interesting stuff. I disagree with a conclusion of the MSN article that cars with lower residual values are better deals as used cars. Presumably, the lower residual value is the efficient market's way of saying that the car is not as good as one with a higher residual value.

So, the reason that the 5 year old Taurus is much less expensive than a similar Honda, is simply because it is WORTH less money.

- Naresh

DMZ

Hondas and Acuras typically depreciate slowly.

My '89 Accord SE-i Coupe that I'll be saying goodbye to when my TL gets delivered in March still retains 20% of its original sticker price after almost 15 years and 140,000 miles according to Kellybluebook.com. This is partially due to the fact that this was a limited production special edition vehicle. In blue-green metallic with a stick shift, only about a couple of thousand were made. It was also the only model of Accord prior to 2001 that had both the stereo controls on the steering wheel and a stick in the same car.

Now that's called Holding Value!

livinglegend

Drive the car that you think will give the least repair/down time, and one thats fun to drive, and is the most versatile. You should find your answer... that way you only have yourself to blame .

rets

Thanks, Rocketsfan,


I just found out two of my cars are among best 10... TL & GS300.

Z Factor

Thanks for the good news.

The more the merrier.

Stewie

I'm also one of those people that tends to keep cars for a while and I still care about resale value.

Cars have high resale values because they are desirable.

Why are some used cars more desirable than others?
In Honda's case its because these cars are thought to be reliable for a very long time. You'll notice that some "near-luxury" brands depreciate quite quickly. Saab comes to mind here. Other than someone very good at reparing them, who really wants a used Saab?

I look at it the same way I look at housing values. Maybe I never plan to move but I want to buy in a place where property values rise faster because this is reflective of how desirable the place is to live. If housing prices start to fall its a clue that maybe your school system is bad or they're putting a nuclear powerplant in your back yard. Either way I don't want to live there anymore.

Same with cars. as long as resale values remain high on Hondas it will be a selling point to me even if I plan on keeping the car forever.

gregory28

Excellent points by Stewie. I agree 100%. People make poor buying decisons because they didn't do enough research. Homes are most people's #1 investment and cars are their #2.

Greg