TSX69

Best Resale Value Cars
After five years, most cars are worth a fraction of their original cost. These models do the best, according to Kelley Blue Book.
POSTED: 7:24 a.m. EST, November 29, 2006

NEW YORK (CNNMoney.com) -- During your first few years of ownership, your biggest car-related expense isn't gasoline. Far from it. It's actually depreciation. That's the loss in a car's value after you purchase it.

The average car loses about 65 percent of its value over five years, according to the automotive pricing firm Kelley Blue Book. That means a $30,000 car will get you about $10,500 if you sell it after five years.

The cars that hold their value best lose about half their value over 5 years, according to Kelley Blue Book. For a $30,000 car, that would get $15,000 for it after five years. That's $4,500 more than you would get for the average car.

That's assuming, of course, that these cars are kept in good condition and not driven more than about 15,000 miles a year.

Depreciation isn't something most buyers even think about when shopping for a new car. Customers are beginning to look at those numbers, though.

"I think they're catching on, I really do," said Jack Nerad, managing editor Kelley's KBB.com Website.

Honda and its Acura luxury brands tied for having the best overall predicted resale value retention over five years, according to Kelley Blue Book.

Two factors that drive resale value are a car's perceived quality - the better a car seems to hold up over time, the better it's value will hold up - and scarcity.

Quality is the biggest reason that Honda vehicles do so well in retained value, said Nerad.

"Honda has the reputation of being very, very well built," said Nerad.

Scarcity and desirability help explain why cars like the Pontiac Solstice appear on Kelley Blue Book's Top Ten list for best overall resale value.

The Solstice, made by General Motors, ranked last among sports cars in a recent Consumer Reports analysis of "predicted reliability." It's a very desirable car, though, with a lot of emotional appeal and few similarly-priced alternatives.

In selecting the top ten cars, Kelley Blue Book excluded low-volume specialty vehicles and vehicles with a base sticker price of more than $60,000.

Options can also have a big influence on a car's eventual resale value, said Nerad. Particularly in luxury cars, buyers shouldn't skimp on options like CD changers, parking sensors, navigation systems, leather interiors and active cruise control.

"Vehicles that are painted in odd colors and vehicles that have been overly personalized will be desired by a smaller group of people down the road," Nerad said. "That will negatively effect their resale value."

Category winners:

# Sedan: Acura TSX
Pricing: $28,090 - $30,090 before options
Value retained after five years: 51 percent
As the most affordable premium-badged vehicle on the market, the fun-to-drive TSX sedan appeals to a variety of buyers for a number of reasons, not the least of which is its rock-solid reputation for reliability.

# Coupe: Honda Civic
Pricing: $14,810 - $24,590 before options
Value retained after five years: 51 percent
Even though it's now available with niceties like a navigation system and can top $20,000, the Honda Civic remains the quintessential economy car and is equally appealing to new-car and used-car shoppers.

# Convertible: MINI Cooper
Pricing: $17,450 - $30,600 before options
Value retained after five years: 52 percent
With plenty of personality, razor-sharp handling and highway mileage up to 36 mpg, the MINI Cooper lineup continues to command selling prices above MSRP some five years after its introduction---even as its second-generation replacement is just around the corner.

# Wagon: Volkswagen Passat

# Hatchback: MINI Cooper
Pricing: $17,450 - $30,600 before options
Value retained after five years: 52 percent
With plenty of personality, razor-sharp handling and highway mileage up to 36 mpg, the MINI Cooper lineup continues to command selling prices above MSRP some five years after its introduction---even as its second-generation replacement is just around the corner.

# Luxury: BMW 5 Series
Pricing: $43,500 - $58,500 before options
Value retained after five years: 46 percent
As a luxury car that has won the aspirational desires of many, BMW's legendary sport sedan is enjoying unprecedented popularity evidenced by record sales.

# Pickup: Toyota Tacoma

# SUV: Acura MDX

# Minivan: Honda Odyssey

# Hybrid: Toyota Prius
Pricing: $22,175 - $23,070 before options
Value retained after five years: 48 percent
When compared to the Honda Civic Hybrid, which features the same sheetmetal as its conventional sedan counterpart, the uniquely styled Prius is the more recognizable gas-electric hybrid vehicle. It's also a very sensible and accommodating passenger car.

biker

All of these are predictions that may or may not materialize.

Biker, whose Accord had a 50% resale value on his Accord after 5 years.

dom

TSXoWnEd

F-C

Saw that this morning.

phile

Alls I know is that used TSXs, which I was looking for when I signed on to these here boards, were not significantly cheaper than brand new ones.

Mokos23

Wow, good sign if I want to trade in or sell my TSX in the future, which I'm think about.

Although, I think the Mini Cooper is ugly and not safe for driving on the expressway near an 18 wheeler.

biker

That's even more true now when TSXs going for invoice is the almost the norm.

GreenMonster

the prediction on my 03 CLS was 52% after 5 years... I've probably hit 52% after 3 1/2 or 4 years...

TSX69

KBB Best Resale Value Awards Announced:
Subaru & BMW Named Best Brands

Kelley Blue Book Announces Winners of 2011 Best Resale Value Awards

IRVINE, Calif., Nov. 17, 2010 -- /PRNewswire/ -- Kelley Blue Book, www.kbb.com, the leading provider of new and used vehicle information, announces the all-new 2011 model-year vehicle winners of its annual Best Resale Value Awards, which recognize current and forthcoming vehicles for their projected retained value 5 years from now. Since depreciation (or loss of value) is typically a car-buyer's primary expense during ownership, these awards, like all of kbb.com's new- and used-vehicle information, are designed to help consumers make more informed car-buying decisions.

Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide, determined by an expert staff of automotive analysts. These prestigious awards honor vehicles expected to maintain the greatest proportion of their original list price after five years of ownership. Low-volume vehicles and vehicles with a Manufacturer's Suggested Retail Price of more than $60,000 are excluded from award consideration, except in the luxury and high-performance categories.

2011 BEST RESALE VALUE: BRAND

Subaru 2011 BEST RESALE VALUE: LUXURY BRAND BMW


2011 BEST RESALE VALUE: BY VEHICLE CATEGORY


SUBCOMPACT CAR: Honda Fit
COMPACT UTILITY VEHICLE: Honda CR-V

COMPACT CAR: MINI Cooper
MID-SIZE UTILITY VEHICLE: Toyota FJ Cruiser

MID-SIZE CAR: Honda Accord
FULL-SIZE UTILITY VEHICLE: GMC Acadia

FULL-SIZE CAR: Ford Taurus
LUXURY UTILITY VEHICLE: BMW X5

NEAR-LUXURY CAR: Lexus IS
HYBRID/ALT. ENERGY UTILITY VEHICLE: BMW X5 XDrive35d

LUXURY CAR: Audi A5
MID-SIZE PICKUP: Toyota Tacoma

SPORTS CAR: Subaru Impreza WRX
FULL-SIZE PICKUP: Ford F-Series Super Duty

HIGH-PERFORMANCE CAR: Ford Mustang GT
VAN: Toyota Sienna

HYBRID/ALT. ENERGY CAR: Volkswagen Golf TDI
WAGON: Subaru Outback


2011 BEST RESALE VALUE: TOP 10 MODELS

Audi A5
Lexus GX

BMW X5
Lexus RX

BMW X6
Subaru Outback

Honda CR-V
Toyota FJ Cruiser

Jeep Wrangler
Toyota Tacoma

(Residual values used for award calculations are based on the November/December 2010 Kelley Blue Book® Residual Value Guide. Top 10 models appear in alphabetical order).

While most car buyers today consider sticker price one of the most significant numbers when choosing a new vehicle, the editors at Kelley Blue Book's kbb.com recommend that shoppers consider a number they won't find on any window sticker: the resale value. Depreciation often is the greatest expense incurred by drivers during the 1st 5 years of vehicle ownership. An average vehicle will only retain about 34% of its original value after a five-year ownership period, meaning that a $50,000 new car today will only be worth somewhere close to $17,000 after 5 years. Vehicles with average or below-average resale values are generally plentiful in the marketplace and easy to find. But certain vehicles are projected to hold their value better than others. While much of a vehicle's resale value is based on supply and demand, as well as current and projected future market conditions, vehicles that maintain their value best are never heavily discounted and tend to generate consumer enthusiasm.

"Consumers should take a good look at the projected resale value of a car when choosing their next new-vehicle purchase, and they would be wise to carefully consider the 2011 Best Resale Value Award winning vehicles and brands on this year's list," said James Bell, executive market analyst for Kelley Blue Book's kbb.com. "Vehicle depreciation is a new-car buyer's biggest expense, yet many shoppers don't realize that resale value information is available for free on Kelley Blue Book's kbb.com. Taking the time to research and choose vehicle makes, models and options wisely now can help new-car shoppers hold value down the road when they go to sell or trade-in the vehicle."

Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. Just because a car is expensive or from a luxury brand does not necessarily mean it will hold its value better than an inexpensive car down the road. In fact, because resale values are calculated as a percent of original list price, an expensive vehicle has to command a relatively high price later as a used car to maintain its residual value. For example, an $80,000 vehicle has to be worth $24,000 3 years later to have a residual value of 30%. At this price point, not only will it compete with other used luxury vehicles but it also will compete with many new vehicles in the marketplace.

Meanwhile, a $12,000 vehicle only needs to be worth $3,600 3 years later to have the same 30% residual value, and at that price point it will not compete at all with new vehicles.

In addition, most options and packages added to a vehicle do not necessarily increase its resale value. However, there are exceptions to the rule, such as a high-performance engine or a performance package in a sports car. Finally, regional preferences can significantly impact the value of a vehicle. In the colder sections of the country, a 2-wheel drive vehicle's resale value will not be as high as a 4-wheel or all-wheel drive option of that same model. At the other end of the thermometer, in warmer climates black (or dark-colored) cars will not have as high resale value as they could command in other regions.

While the company's Residual Value Guide has been published since 1982, Kelley Blue Book established its annual Best Resale Value Awards in 2003. Kelley Blue Book reports projections based on current vehicle data, sales data, market conditions for each vehicle, competition within vehicle segments, expectations of the future economy and the combined experience of Kelley Blue Book's residual analysts. Residual values reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a 5-year lease or ownership period. Kelley Blue Book's residual values are used by manufacturers, banks, financial institutions, governmental agencies and the automotive leasing industry.

Moog-Type-S

Perhaps it has such high resale value because it's not a Hybrid/Alt Energy Car.

Diesel as alternate energy All those alternative energy big rigs rolling down the highway

Colin

By 2003 the CL was already acknowledged as a sales dog. The actual resale performance is no surprise to me. VERY few cars sell better as used cars than they did as new cars. The CL (both generations) were the worst cars Acura ever made.

Moog-Type-S

^^ Greeny was waiting 4 years for that response.

biker

I don't get the FJ - just cause it's a Toyota?

Legend2TL

^ Don't know about the FJ's but my wife's cousin bought another new CRV for their daughter, the used prices for a 2-3 year old CRV's in the MD area was not much less than new ones. For whatever reason CRV's hold their value.

SSFTSX

ALG residul value. TL is there but not MDX/TSX . and
how BMW X3 went there. when Q5/RDX not.

Costco

I don't see the correlation here between resale value and sales performance with whether a car is good or bad.

Typically when I think of a worst car ever made, I think of a car with a history of engine, transmission or electrical problems. Some issue that leaves people stranded. Or poor build quality, terrible ergonomics and NVH, etc.

Resale value is definitely one thing to consider when buying a car. But it's not that important... at least I don't buy a car wondering how much I can sell it for a few years down the road. I don't worry about how many miles I put on it either. It's like exterior styling. It may cause some people to completely overlook a car, but if its styling is panned or if its resale value is lower than competitors that doesn't mean it's a bad car, does it?

my

Colin

It's ok if you can't see it, but it's there.
I said worst car ACURA ever made, don't misquote me.
It does if the context of the topic is resale value.

CL6

The only people who go by Blue Book at the ones wanting it when they trade in their car. Funny how they never want to pay Blue Book for the car they're trying to buy.

pttl

We know you're a car salesman. But what would you want if you weren't?

CL6

Let's go Blue Book for Blue Book... most logical.

AZuser

Dealers I've dealt with won't even do that.

Costco

Guess that would make the 4G TL the worst Acura ever made if you put it in the context of ugliness

Now you can see how silly it is to just narrow the context down to just one factor. Even then, I'd argue that styling is more important than resale value to most consumers.... it sure is to me.

There's a clear difference in the line of thinking between automobile salespeople and ordinary consumers, at least in the limited scope of this thread. Yes, you might say the TL is doing better in sales than most would think, which does not explain the panned styling. But whether a car festers on a lot or they can't build 'em fast enough makes very little difference to me. As a consumer, I'd probably prefer that dealers can't move a certain model off the lot, I'll probably get a better deal and have a bigger selection to choose from. You and CL6, I presume don't want that.

Sclass88

That's GREAT! ... But I'm never getting rid of my TSX.

pttl

Logic doesn't seem to apply to car sales. Thank goodness for the internet.

Colin

Yes, I can think

CL6

I'm surprised to hear you say that. My 03 CL was a fantastic car in every respect and I have driven my fair share of cars. Best manual transmission I've ever driven save for the NSX. The 1G and 2G RL was a real dog, the Vigors were dogs.

When my CL was stolen and I was paid out on it I received what I'd call a very generous check from Progressive, all the more so considering my car was 6 years old and had 68,000 miles on it. During my time of ownership the only non-maintainance cost I had was 1 headlight ballast, which I changed myself.

From a sales perspective I'm sure the current Gen RL has it worse than the CL did.

TSX69

Toyota Retains Top Brand Position for 2nd Consecutive Year

The 2013 Residual Analysis Report is now available from Kelley Blue Book, www.kbb.com, the leading provider of new and used car information, including details about this year's Best Resale Value Award winners. Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide, determined by a skilled staff of automotive analysts.

Toyota's entire lineup of 2013 model-year vehicles is expected to retain the greatest amount of its original value after the initial five years of ownership. The luxury brand with the same claim is Toyota's more refined sibling, Lexus. Both Toyota and Lexus earned the Best Resale Value Awards' highest honors – Best Resale Value: Brand and Best Resale Value: Luxury Brand, respectively – for the second consecutive year. Both brands also won their respective categories for the 2010 model year, making them winners in three of the last four years. Toyota improved its 60-month average residual value by more than 3 percentage points from this time last year, driven primarily by the brand's two perennial truck winners, the FJ Cruiser and Tacoma. The newly redesigned Avalon also improved its 60-month residual value nearly 8 percentage points year-over-year, making a significant contribution to Toyota's already strong lineup.

"After the past 2 tumultuous years, Toyota bounced back in 2012 to prove it hadn't lost its competitive spirit," said Eric Ibara, director of residual consulting for Kelley Blue Book. "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. If the recall wasn't enough, the 2011 tsunami in Japan resulted in severe disruptions in supply. However, Toyota prevailed and regained the market share it lost to other automakers during this timeframe. It is quite an accomplishment when you think about the challenges Toyota has overcome to remain Best Resale Value: Brand for the past 2 years in a row."

Overall, 60-month residual values for all 2013 model-year vehicles averaged 38.2 percent, which is stated as a percent of each vehicle's MSRP. This represents an increase of 2.5 percentage points compared to the 2012 model-year average from the same period last year.

For 2013, Kelley Blue Book's residual value forecast calls for the truck segment to continue to hold its value better than cars, with the average 60-month residual value across all trucks at 39.8 percent, compared to the average across all car models at 37.2 percent. Excluding compact SUV/crossovers, full-size SUV/crossovers and high-performance cars, all segment average 60-month residual values increased on a year-over-year basis. The average residual values for all cars increased 3.1 percentage points, while all trucks increased 1.8 percentage points.

The automotive market continued to gain momentum this year after clocking in at 12.7 million sales in 2011. With a little more than one month remaining in 2012, it appears auto sales will climb to around 14.4 million this year. However, head winds are starting to pick up, and there are now more reasons to expect the automotive recovery to stall.

"Unemployment remains aggravatingly high, despite the amount of time that has elapsed since the economy bottomed in 2009," said Ibara. "Individuals without jobs are not likely to purchase new vehicles, so a return to a 16 million seasonally adjusted annual rate (SAAR) will not be likely until the employment picture brightens."

Kelley Blue Book's Full 2013 Residual Analysis Report Includes:

The 2013 Best Resale Value Award winners
Best Residual Value Brands 2013 vs. 2012
Residual forecasts for truck and utility, compact, subcompact, and mid-size car segments
2013 market outlook
Analysis of domestic brand residual values
Analysis of foreign brand residual values, including Japanese, European and Korean automakers

The full Residual Analysis Report is available upon request by sending an email with your name, title and company name to pr@kbb.com.

About Kelley Blue Book® Residual Values

While the company's Residual Value Guide has been published since 1982, Kelley Blue Book established its annual Best Resale Value Awards in 2003. Kelley Blue Book reports projections based on current vehicle data, relevant auction transactions, sales data, market conditions for each vehicle, competition within vehicle segments, expectations of the future economy and the combined experience of Kelley Blue Book's residual analysts. Residual values reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a 5-year lease or ownership period. Kelley Blue Book's residual values are used by manufacturers, banks, financial institutions, and the automotive leasing industry.

For more information about Kelley Blue Book's Best Resale Value Awards, visit http://www.kbb.com/new-cars/best-res...e-awards-2013/.

charliemike

Predicting five-year resale values for 2013 models is ridiculous.

ThermonMermon

was surprised that 2-3 year old IS 250s sold for almost the same as a well negotiated new one.

i leased a 2010 with a 34k sticker. Two years into lease, my payout was ~25k and i surrendered (no trade-in) to a local dealer for ~27k, meaning they might have sold for ~29k while 2011/2012s were still selling for 34k base asking price. assuming you may be able to negotiate on certain new configurations, paying 29k for a 2 year old pre-refresh seems nuts.

TSX69

2013 Honda Accord, Civic, Fit & CR-V Receive "Best Resale Value" Honors from Kelley Blue Book's KBB.com

American Honda Motor Co., Inc. received 6 Best Resale Value Awards from trusted vehicle valuation source Kelley Blue Book www.kbb.com. The all-new 2013 Honda Accord, the restyled 2013 Honda Civic and Civic Si, as well as the 2013 Honda Fit each earned awards in their respective segments for projected resale value after 5 years of ownership. Additionally, the 2013 Honda Civic and 2013 Honda CR-V were both honored as 2 of the overall Top 10 Best Resale Value vehicles in America this year.

2013 Honda Vehicles Honored with Kelley Blue Book Best Resale Value Awards

2013 Honda Accord – Best Resale Value: Mid-Size Car
2013 Honda Civic – Best Resale Value: Compact Car
2013 Honda CR-V – Best Resale Value: Top 10
2013 Honda Civic – Best Resale Value: Top 10
2013 Honda Civic Si – Best Resale Value: Sporty Compact Car
2013 Honda Fit – Best Resale Value: Subcompact Car

"Honda vehicles are engineered to provide a fun-to-drive experience as well as overall value for the money," said Michael Accavitti, vice president of national marketing operations at American Honda. "With a continued focus on quality, fuel-efficiency and premium content, we have always believed that a Honda provides every buyer with added value, and we are honored to be recognized for our efforts by valuation leader Kelley Blue Book."

Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide, determined by a skilled staff of automotive analysts. These prestigious awards honor vehicles expected to maintain the greatest proportion of their original Manufacturer's Suggested Retail Price (MSRP) after 5 years of ownership. Since depreciation (or loss of value) is typically a car buyer's primary expense during ownership, these awards are designed to help consumers make more informed car-buying decisions.

"Honda's dominance in multiple car segments is evidenced by its class-leading wins in 4 segments," said Eric Ibara, director of residual consulting, Kelley Blue Book. "Based on our projections, no other car in the mid-size car segment can beat the 2013 Accord when it comes to resale value. 2013 Honda vehicles also took top honors in several very hotly contested segments, and they're not flukes. With many repeat winners and perennial favorites, the Honda brand continues to produce quality vehicles that return value to their owners, both during the ownership period and upon resale."

Kelley Blue Book established its annual Best Resale Value Awards in 2003. The company reports projections based on current vehicle data, relevant auction transactions, sales data, market conditions for each vehicle, competition within vehicle segments, expectations of the future economy and the combined experience of Kelley Blue Book's residual analysts. Residual values reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a 5-year lease or ownership period.

For more information about Kelley Blue Book's Best Resale Value Awards, please visit http://www.kbb.com/new-cars/best-res...e-awards-2013/.

Connect with Honda: Media Newsroom (for journalists): www.hondanews.com Future Vehicles (for consumers): http://automobiles.honda.com/ Facebook: https://www.facebook.com/Honda YouTube: www.youtube.com/honda Flickr: www.flickr.com/hondanews Twitter: www.twitter.com/honda Pinterest: http://pinterest.com/honda/ On Google+: https://plus.google.com/+Honda

SOURCE American Honda Motor Co., Inc.