Kelley Blue Book Names 2013 Best Resale Value Award Winners
Nov 29, 2012 (Close-Up Media via COMTEX) --
The 2013 model-year vehicle winners of the annual Best Resale Value Awards, recognizing current and forthcoming vehicles for their projected retained value throughout the initial five-year ownership period, were announced by Kelley Blue Book, a provider of new and used car information.
Since depreciation (or loss of value) is typically a car buyer's primary expense during ownership, Kelley Blue Book said these awards, like all of KBB.com's new and used vehicle information, are designed to help consumers make more informed car-buying decisions.
According to a release, 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 awards honor vehicles expected to maintain the greatest proportion of their original Manufacturer's Suggested Retail Price (MSRP) after five years of ownership. Low-volume vehicles and vehicles with a MSRP of more than $60,000 are excluded from award consideration, except in the luxury and high-performance categories.
2013 BEST RESALE VALUE: BRAND
2013 BEST RESALE VALUE: LUXURY BRAND
2013 BEST RESALE VALUE: BY VEHICLE CATEGORY
SUBCOMPACT CAR: Honda Fit
COMPACT SUV/CROSSOVER: Jeep Wrangler
COMPACT CAR: Honda Civic
MID-SIZE SUV/CROSSOVER: Toyota FJ Cruiser
SPORTY COMPACT CAR: Honda Civic Si
FULL-SIZE SUV/CROSSOVER: Toyota Sequoia
MID-SIZE CAR: Honda Accord
LUXURY COMPACT SUV/CROSSOVER: Infiniti EX
FULL-SIZE CAR: Toyota Avalon
LUXURY MID-SIZE SUV/CROSSOVER: Porsche Cayenne
ENTRY-LEVEL LUXURY CAR: Lexus IS
LUXURY FULL-SIZE SUV/CROSSOVER: Lexus LX
LUXURY CAR: Lexus GS 350
MID-SIZE PICKUP TRUCK: Toyota Tacoma
HIGH-END LUXURY CAR: Porsche Panamera
FULL-SIZE PICKUP TRUCK: Toyota Tundra
SPORTS CAR: Chevrolet Camaro V6
MINIVAN/VAN: Toyota Sienna
HIGH-PERFORMANCE CAR: Chevrolet Camaro SS
HYBRID SUV/CROSSOVER: Lexus RX 450h
HYBRID/ALTERNATIVE ENERGY CAR: Ford Fusion
ELECTRIC VEHICLE: Chevrolet Volt
2013 BEST RESALE VALUE: TOP 10 CARS
Honda Civic Scion tC
Honda CR-V Toyota FJ Cruiser
Jeep Wrangler Toyota Land Cruiser
Lexus LX Toyota Tacoma
Porsche Cayenne Toyota 4Runner
While most car buyers consider sticker price one of the most significant numbers when choosing a new vehicle, the Company said its editors at 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 first five years of vehicle ownership. An average 2013 model-year vehicle only will retain about 38.6 percent of its original value after a five-year ownership period, meaning that a $50,000 new car now will only be worth somewhere close to $19,300 after five years. Vehicles with average or below-average resale values are generally plentiful in the marketplace. 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 retain their value best are rarely discounted and tend to generate high levels of consumer interest.
"The competition for Best Resale Value within many segments has become very heated in the last few years, as major vehicle redesigns and new model introductions have challenged the traditional favorites," said Eric Ibara, director of residual consulting for Kelley Blue Book. "However, for the second year in a row, Toyota and Lexus retain the top Best Resale Value ranking for both non-luxury and luxury brands, based on the average 60-month residual value across all models in each brands' respective lineup. Combined, there is an impressive total of 12 Toyota and Lexus models bringing home 2013 Kelley Blue Book Best Resale Value Awards this year; half of the Top 10 models with Best Resale Value for 2013 hail from either Toyota or Lexus."
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 MSRP, an expensive vehicle has to command a relatively high price later as a used car to maintain its residual value. For example, a $60,000 vehicle has to be worth $21,000 five years later to have a residual value of 35 percent. At this price point, not only will it compete with other used luxury vehicles, but it also will compete with some new vehicles in the marketplace. Meanwhile, an $18,000 new vehicle only needs to be worth $6,300 five years later to have the same 35 percent residual value, and at that price point it will not compete with new vehicles.
"Getting the most for your money means knowing what your car will be worth when you sell it, not just what it's worth when you buy it," said Jack Nerad, executive editorial director and 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 wisely choose vehicle makes, models and options now can help new-car shoppers get as much money as possible when they sell or trade-in the vehicle in the future."
In addition, the Company noted that 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 two-wheel drive vehicle's resale value will not be as high as a four-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, 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 five-year lease or ownership period. Kelley Blue Book's residual values are used by manufacturers, banks, financial institutions, and the automotive leasing industry.
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