KBB: Honda & VW (?!) Best Resale Value
11-14-07, 08:35 AM
#1
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KBB: Honda & VW (?!) Best Resale Value
Honda & VW Have Best Resale Value
Of all the car brands Honda and Volkswagen have been picked as the labels with the best resale value, an important distinction for many new car buyers. A survey conducted by Kelley Blue Book (KBB) has found VW to be the brand with the best residual value, while Honda managed to have four vehicles topping their respective categories.
When picking the cars, KBB forecasts which vehicles are expected to retain the greatest proportion of their original value after five years using market conditions such as competition, future economic conditions and other factors, reports the Associated Press.
The study also found that America’s domestic brands have improved their standings dramatically in recent years. Their resale values are improving as they move away from low-margin rental fleets sales, which flood the market and can damage the brand’s image in the eyes of consumers.
Another major improvement was relative newcomer Scion. The budget Toyota brand managed to top two separate categories despite have a very limited product portfolio.
Of all the car brands Honda and Volkswagen have been picked as the labels with the best resale value, an important distinction for many new car buyers. A survey conducted by Kelley Blue Book (KBB) has found VW to be the brand with the best residual value, while Honda managed to have four vehicles topping their respective categories.
When picking the cars, KBB forecasts which vehicles are expected to retain the greatest proportion of their original value after five years using market conditions such as competition, future economic conditions and other factors, reports the Associated Press.
The study also found that America’s domestic brands have improved their standings dramatically in recent years. Their resale values are improving as they move away from low-margin rental fleets sales, which flood the market and can damage the brand’s image in the eyes of consumers.
Another major improvement was relative newcomer Scion. The budget Toyota brand managed to top two separate categories despite have a very limited product portfolio.
11-14-07, 10:30 AM
#5
VW still has horrible re-sale value, especially Audi. The A3's and A4's depreciates so much once driven off the lot, it drops to almost $4,000-$5,000. VW/Audi has always and still have plenty of electrical problems that's why their re-sale value has been so low. That past brand image doesn't help either.
Last edited by rfx45; 11-14-07 at 10:58 AM.
11-14-07, 11:12 AM
#6
Lexus Fanatic
While I have a lot of respect for KBB (they obviously are one of the top references for used-car values), rfx45 and picus here have a point, and I have to agree with them. And with all due respect to KBB, I also have to question this "study" and its merits. The resale value of Audi products does seem to be improving as their models gain more acceptance in the marketplace (Honda's, of course, was always high), but VW, even today, is not known for good resale value at all. In fact, the Phaeton's was so bad.......and sales were so low.........that VW had to pull the car from the American market. The value of used Beetles has also dropped off some as the car is no longer the extremely high demand/short-supply car it once was.
The new EOS, which replaces the old VW Cabriolet convertible, is not selling particularly well despite the foolproof folding metal top.........it is simply too expensive for what it gives you.
So, until I myself see some more evidence of it (and I'll stand corrected if I do), I'm going to take these "high" values for used VW's with a grain of salt.
The new EOS, which replaces the old VW Cabriolet convertible, is not selling particularly well despite the foolproof folding metal top.........it is simply too expensive for what it gives you.
So, until I myself see some more evidence of it (and I'll stand corrected if I do), I'm going to take these "high" values for used VW's with a grain of salt.
11-14-07, 11:26 AM
#7
However, the new Jetta is become widely accepted here in Vegas, I see the same amount of people buying accords and Jettas, and to me, aside from its femine look, it is actually a very good buy, quality interior, good suspension and etc.. I can see VW is catching up now.
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11-14-07, 12:20 PM
#8
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I have a friend who actually owns a Toureg; now I am not sure if it's the same in Canada as the US, but he said he picked it up one year old with 9k km for ~26k less than new. That's close to 40% of it's value in one year. :/
I do think they are on an upswing definitely. But overall I'd like to know the criteria. It seems to me that BMW, Lexus, Infiniti, Mini, etc... all hold their value better.
I do think they are on an upswing definitely. But overall I'd like to know the criteria. It seems to me that BMW, Lexus, Infiniti, Mini, etc... all hold their value better.
11-14-07, 02:02 PM
#9
Speaks French in Russian
Honda and VW have best resale values
Of all the car brands Honda and Volkswagen have been picked as the labels with the best resale value, an important distinction for many new car buyers. A survey conducted by Kelley Blue Book (KBB) has found VW to be the brand with the best residual value, while Honda managed to have four vehicles topping their respective categories.
When picking the cars, KBB forecasts which vehicles are expected to retain the greatest proportion of their original value after five years using market conditions such as competition, future economic conditions and other factors, reports the Associated Press.
The study also found that America’s domestic brands have improved their standings dramatically in recent years. Their resale values are improving as they move away from low-margin rental fleets sales, which flood the market and can damage the brand’s image in the eyes of consumers.
Another major improvement was relative newcomer Scion. The budget Toyota brand managed to top two separate categories despite have a very limited product portfolio.
When picking the cars, KBB forecasts which vehicles are expected to retain the greatest proportion of their original value after five years using market conditions such as competition, future economic conditions and other factors, reports the Associated Press.
The study also found that America’s domestic brands have improved their standings dramatically in recent years. Their resale values are improving as they move away from low-margin rental fleets sales, which flood the market and can damage the brand’s image in the eyes of consumers.
Another major improvement was relative newcomer Scion. The budget Toyota brand managed to top two separate categories despite have a very limited product portfolio.
11-14-07, 02:44 PM
#10
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11-30-07, 01:57 PM
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2008 Kelly Blue Book Resale Value Winners
Sorry for not realizing this thread was already started but this was not I was expecting. They do exclude cars with prices over 60K, not necessarily an invalidating exception. BMW 6 series best luxury resale? Whodathunk.
New 2008 Vehicles Named Best Resale Value Award Winners by Kelley Blue Book
W
IRVINE, Calif., Nov. 14 /PRNewswire/ -- Kelley Blue Book (http://www.kbb.com), the leading provider of new and used vehicle information, announces the all-new 2008 model-year vehicle winners of its annual Best Resale Value Awards, which recognizes current and upcoming vehicles for their projected retained value five years from now (the average ownership period). 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 Residual Value Guide researched by an expert staff of automotive market analysts. These prestigious awards honor vehicles expected to maintain the greatest proportion of their original retail 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.
2008 BEST RESALE VALUE: BRAND
Volkswagen
2008 BEST RESALE VALUE: BY VEHICLE CATEGORY
SEDAN: Honda Civic LUXURY: BMW 6 Series
COUPE: Infiniti G37 PICKUP: Toyota Tundra
CONVERTIBLE: MINI Cooper SPORT UTILITY: Acura MDX
WAGON: Scion xB VAN / MINIVAN: Honda Odyssey
HATCHBACK: Scion tC HYBRID: Honda Civic Hybrid
HIGH PERFORMANCE: Chevrolet Corvette Z06
2008 BEST RESALE VALUE: TOP 10 MODELS
Chevrolet Corvette Scion xB
Honda Civic Toyota Corolla
Infiniti G37 Volkswagen Eos
MINI Cooper Volkswagen Jetta
Scion tC Volkswagen Rabbit
(All values based on the November/December 2007 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 today on any window sticker: its resale value. Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership. An average vehicle will only retain about 35 percent of its original value after a five-year ownership period, meaning that a $20,000 new car today will only be worth somewhere close to $7,000 after five years. Vehicles with average or below-average resale values are generally plentiful in the marketplace and easy to find, such as models found in rental fleets. 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 quality-built and generate consumer enthusiasm.
Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. Certain features available on new vehicles today will be desirable by a majority of used-car buyers three to five years down the road, and these features will help the vehicle maintain more of its original value than if they were absent. First, car-buyers should choose a popular exterior color such as silver, white, gray or black. Then, car-buyers should choose optional equipment that is customary for the type of vehicle they are buying. For instance, if you are buying a luxury sedan choose automatic transmission versus a manual transmission. Equipment and options that are popular with a broad spectrum of used-vehicle buyers include antilock brakes (ABS), alloy wheels, audio system with MP3/iPod compatibility, power-operated leather-covered seats, cruise control, remote locking and navigation system. Car-buyers should also recognize that the cost of some potentially expensive features like premium audio systems will be difficult to recover at trade-in or resale time. The same holds true for "custom" features and vibrant and/or less popular paint colors.
"Choosing a vehicle with a traditional or classic style will generally stand the test of time when it comes to resale value and getting more for your vehicle when you are ready to sell it," said Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book's kbb.com. "Vehicles with radical interiors and exteriors will likely lose more of their value, as they will not appeal to the mainstream public after five years."
While the company's Residual Value Guide has been published since 1981, 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 team of market and pricing analysts. Values reflect projected future wholesale pricing for clean, reconditioned vehicles at the end of a five-year lease or ownership period. Kelley Blue Book's residual values are used by banks, financial institutions, governmental agencies and the automotive leasing industry.
New 2008 Vehicles Named Best Resale Value Award Winners by Kelley Blue Book
W
IRVINE, Calif., Nov. 14 /PRNewswire/ -- Kelley Blue Book (http://www.kbb.com), the leading provider of new and used vehicle information, announces the all-new 2008 model-year vehicle winners of its annual Best Resale Value Awards, which recognizes current and upcoming vehicles for their projected retained value five years from now (the average ownership period). 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 Residual Value Guide researched by an expert staff of automotive market analysts. These prestigious awards honor vehicles expected to maintain the greatest proportion of their original retail 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.
2008 BEST RESALE VALUE: BRAND
Volkswagen
2008 BEST RESALE VALUE: BY VEHICLE CATEGORY
SEDAN: Honda Civic LUXURY: BMW 6 Series
COUPE: Infiniti G37 PICKUP: Toyota Tundra
CONVERTIBLE: MINI Cooper SPORT UTILITY: Acura MDX
WAGON: Scion xB VAN / MINIVAN: Honda Odyssey
HATCHBACK: Scion tC HYBRID: Honda Civic Hybrid
HIGH PERFORMANCE: Chevrolet Corvette Z06
2008 BEST RESALE VALUE: TOP 10 MODELS
Chevrolet Corvette Scion xB
Honda Civic Toyota Corolla
Infiniti G37 Volkswagen Eos
MINI Cooper Volkswagen Jetta
Scion tC Volkswagen Rabbit
(All values based on the November/December 2007 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 today on any window sticker: its resale value. Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership. An average vehicle will only retain about 35 percent of its original value after a five-year ownership period, meaning that a $20,000 new car today will only be worth somewhere close to $7,000 after five years. Vehicles with average or below-average resale values are generally plentiful in the marketplace and easy to find, such as models found in rental fleets. 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 quality-built and generate consumer enthusiasm.
Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. Certain features available on new vehicles today will be desirable by a majority of used-car buyers three to five years down the road, and these features will help the vehicle maintain more of its original value than if they were absent. First, car-buyers should choose a popular exterior color such as silver, white, gray or black. Then, car-buyers should choose optional equipment that is customary for the type of vehicle they are buying. For instance, if you are buying a luxury sedan choose automatic transmission versus a manual transmission. Equipment and options that are popular with a broad spectrum of used-vehicle buyers include antilock brakes (ABS), alloy wheels, audio system with MP3/iPod compatibility, power-operated leather-covered seats, cruise control, remote locking and navigation system. Car-buyers should also recognize that the cost of some potentially expensive features like premium audio systems will be difficult to recover at trade-in or resale time. The same holds true for "custom" features and vibrant and/or less popular paint colors.
"Choosing a vehicle with a traditional or classic style will generally stand the test of time when it comes to resale value and getting more for your vehicle when you are ready to sell it," said Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book's kbb.com. "Vehicles with radical interiors and exteriors will likely lose more of their value, as they will not appeal to the mainstream public after five years."
While the company's Residual Value Guide has been published since 1981, 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 team of market and pricing analysts. Values reflect projected future wholesale pricing for clean, reconditioned vehicles at the end of a five-year lease or ownership period. Kelley Blue Book's residual values are used by banks, financial institutions, governmental agencies and the automotive leasing industry.
Last edited by RON430; 11-30-07 at 02:18 PM.
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