Which cars retain their value better?
Depreciation, the steadily declining value of your vehicle over the years, is every car owner’s nightmare. No matter what you do, that new beauty is going to be worth less the moment you drive it off the dealer's lot.
In some instances, a lot less. Falling resale values can actually even leave owners owing more on their car loans than the cars are worth. That's called being "upside down."
But, even if you’re not upside down, you may be in for a shock at trade-in time: The car you thought was worth $12,000 or $11,000 could be worth $10,000 at most.
With resale value in mind, ALG compiled this list of the brands likely to depreciate the least during ownership. Top marks go to Subaru and Honda.
Canadian Black Book has its own version of residual value, broken down by specific vehicles and measured over a 4 year period.
Toyota topped the charts with six category winners, out of 17 categories, in this year’s rankings, which are based on the current value of 2006 models.
The winners in several different categories are:
- Subcompact – Toyota Yaris
- Compact – Mazda5
- Midsize car – Honda Accord, Subaru Outback, Volkswagen Passat (tie)
- Full-size car – Toyota Avalon
- Entry luxury car – Lexus IS series
- Luxury car – BMW 5 Series, BMW 6 Series, Mercedes-Benz CLS-Class (tie)
- Compact SUV – Toyota RAV4
- Midsize SUV – Honda Pilot
- Full-size SUV – Nissan Armada, Toyota Sequoia (tie)
- Luxury SUV – Mercedes-Benz G-Class
Do you pay much attention to such depreciation stats? What do you do to maximize future value when considering a car purchase?
By Gordon Powers, MSN Money
Posted by: Jeff | Jun 1, 2021 3:29:55 PM
Look for resale values to start dropping on some of the imports as they start to increase incentives ie. 0% financing and as they increase market share on rental vehicles. Rental vehicles are typically put back on market after approx 10 months of driving
Posted by: J.N. | Jun 1, 2021 8:18:40 PM
I think the people that made this list are being payed buy Toyota and ather imports. I see the value about the same for imports and domestic cars. It's all hype for the imports to get sales after all there recalls.
Posted by: Tutashen | Jun 2, 2021 6:37:49 AM
Thats funny cause i wouldnt drive any of those cars lol Porsche or Caddy are the only real cars out there!
Posted by: Dan | Jun 2, 2021 11:31:00 PM
You say "falling resale values can actually even leave owners owing more on their car loans than the cars are worth" like it is a surprise and out of the norm. I'm in the car business and I can tell you most people that finance without a sizable down payment are upside down, if you take that 5 year finance any car you buy will be worth less then you owe. If you don't have a premium brand like BMW or Merc then your more then likely screwed on a 4 year as well (with the exception of toyota-lexus or maybe even honda)
In regards to people thinking their trade is worth 11k or 12k and it actually being 10k thats far off. On average if a person thinks their trade is worth 20k, its really worth 10k - 12k. the black book isn't worth the paper it's written on, your car is worth what the wholsalers in your area say its worth.
And to the comment above, if you really see it that way then you must be from another planet, ask yourself why these domestics don't lease anymore. They stopped leasing cause the dealers wouldn't buy the cars back at the residual values cause the cars weren't even worth anywhere near that they could get them much cheaper everywhere else. Guess why they could get them so cheap everywhere.......Because they are cheap cars, meaning built poorly, unrealiable and undesired when compared to imports. Domestic cars don't hold any value and are worth nothing at the end of the lease and in order for GM and Chysler not get bit in the ass and take a hit on the cars when they take them back after a lease they would have to put the true residual value in the deal, which they are too ashamed to write on paper hence why they got rid of leasing. I would love to hear you explain exactly how "you see" the value as about the same when all the facts show us the differntly and when Honda and Toyota can continue to lease thier cars. Toyota doesn't have to pay people to make up lists cause they build a quality car, a boring looking car but definitly realiable. I'm guessing you drive a domestic and that's why your saying that, because you can't compare the value of imports to domestics (with the exception of Ford), imports are much better by far right now, even Hyundai has surpassed domestics and that's sad!
btw porshes are great, caddy's suck though...... Bmw all the way!!!
Posted by: consumer treadmill anyone? | Jun 5, 2021 1:23:58 AM
the car that holds the most value to myself, is the car i continually maintain and use.
whatever i don't need to spend purchasing another car, is the same amount that my car has gained in value.
i could care less what the industry says my car is worth whilst reaching into my pockets. their perspective is suspect at best when considering their motives.
Posted by: Rob Fauchon | Jun 7, 2021 12:19:33 PM
Comments about the value of used vehicles are worthless when coming from owners beit import or domestic. A vehicle owner will vigorously defend his or her decision to buy at whatever the price they themselves have decided is good value. Whether it is or isn't doesn't depend on the trade in value or the resale price obtained by the seller. What I am saying is that the true value of a vehicle is not what you pay for it, but the use you get out of it.
Posted by: Steve | Jun 8, 2021 8:25:00 AM
A few observations.
1 There seems to be a gaping chasm in the list where full sized trucks would be (interesting as Domestic manufacturers make most of their profit in this section).
2 The cars are listed by category and not by model. For example the Ford GT40 seems to have quite strong resale values as do other specialty models (think Honda Civic CRX Si v/s Honda Civic) but would be diluted by larger volumes of other models.
3 Familiarity breeds contempt, Try looking at resale of the BMW 520d in England in about 3-5 years when the glut of BMW company car purchases flood the auctions.
4 Regional differences have a huge impact on values, when gas goes through the roof fuel efficient cars in California go up in value but with cheaper fuel Domestic 4x4's in Northern Ontario do better. A diesel VW in Sudbury for sale in December when Clinton was in power was relatively worth far less than it was in July when Bush or Regan were in power. Just something to think about.