Best 10, Worst 10 Cars for Holding Value
by Fritz Esker

In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). What do these cars have in common?

"You see a much better alignment of production with market demands," says James Clark, editorial director of ALG.

What about cars that will hold the least value after five years?

"You'll see a lot of brands we traditionally have high-depreciation rates for," says Clark.

Some of these vehicles are heavily used as fleet vehicles for rental car companies; some (i.e. Korean brands like Hyundai and its subsidiary, Kia) have perceived quality issues, even though Clark says the Korean brands' "quality has actually gotten a lot better, but their perceived quality is still low."


Best Value Holders:

1. Volkswagen R32

MSRP: $32,990
Style: Performance
5-year residual value: 43 percent or $14,186
Engine: six-cylinder, 3.2-liter, 250 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 5 years, 60,000 miles
Special features: SIRIUS satellite radio, power glass sunroof, multi-function trip computer
Reasons it will hold value: It's a reasonably priced, low-volume car. It's a descendant/variant of the Volkswagen GTI, also known for its quality.

2. Jeep Wrangler

MSRP: $19,680
Style: SUV
5-year residual value: 42.9 percent or $8,443
Engine: Six-cylinder, 3.8-liter, 202 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- lifetime limited warranty, certain restrictions apply
Special features: AM/FM radio with in-dash CD player & MP3 capability, Sentry Key Theft Deterrent System
Reasons it will hold value: It's cornered the niche market for people who like to do a lot of off-roading and has few competitors.

3. Mini-Cooper

MSRP: $18,700
Style: Hatchback
5-year residual value: 42.7 percent or $7,985
Engine: Four-cylinder, 1.6-liter, 118 horsepower
Warranty: 4 years/50,000 miles
Special features: Four years of complimentary roadside assistance, toggle switch controls, fully electronic throttle
Reasons it will hold value: It's sporty, fuel-efficient, reasonably priced and covers a wide spectrum of customers. It also has a good reputation.

4. Scion XB

MSRP: Manual $16,370, automatic $17,320
Style: Compact station wagon
5-year residual value: 39.5 percent or $6,466(manual)/ $6,841 (automatic)
Engine: Four-cylinder, 2.4-liter, 158 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years, 60,000 miles
Special features: Tachometer and trip meter, 60/40-split folding rear seat, AM/FM CD and iPod capability
Reasons it will hold value: It's relatively fuel-efficient, reasonably priced and it has more space than compacts with similar prices.

5. Honda CR-V

MSRP: $20,700
Style: SUV
5-year residual value: 39.4 percent or $8,156
Engine: Four-cylinder, 2.4-liter, 166 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: XM satellite radio, Honda satellite-linked navigation system, digital audio card reader
Reasons it will hold value: It's fuel-efficient for an SUV, seats five and has plenty of storage room.

6. Toyota RAV4

MSRP: $21,500
Style: SUV
5-year residual value: 38.9 percent or $8,364
Engine: V-6, 3.5-liter, 269 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: AM/FM 6-disc CD changer with satellite radio capability and MP3/WMA capability, 10 cup holders
Reasons it will hold value: By SUV standards, it's fuel-efficient. It seats five and has plenty of storage room.

7. Infiniti G35/G37

MSRP: $32,250
Style: Sedan
5-year residual value: 38.9 percent or $12,545
Engine: V-6, 3.5-liter, 306 horsepower
Warranty: Basic -- 4 years, 60,000 miles, powertrain -- 6 years/70,000 miles
Special features: XM satellite radio, tire pressure monitoring system, heated front seats
Reasons it will hold value: It's a great price for the product. The performance is similar to the BMW 335, but is approximately $8,000 cheaper.

8. Dodge Viper

MSRP: $87,460
Style: Sports car
5-year residual value: 38 percent or $33,235
Engine: V-10, 8.4-liter, 600 horsepower
Warranty: powertrain -- 3 years/36,000 miles
Special features: AM/FM stereo with CD player and CD changer, Sentry Key Theft Deterrent System
Reasons it will hold value: It's a low-volume sports car that has an exotic feel and is reasonably price compared to exotic sports cars.

9. BMW 1 Series

MSRP: $28,600
Style: Small luxury/small-family
5-year residual value: 37.8 percent or $10,811
Engine: Six-cylinder, 3.0-liter, 230 horsepower
Warranty: 4 years/50,000 miles
Special features: Two-way power glass moon roof, anti-theft AM/FM audio system with 10 speakers and satellite radio/MP3 capability
Reasons it will hold value: It has a very low volume and is smaller, lighter and cheaper than the BMW 3 series.

10. Nissan Rogue

MSRP: $19,430
Style: SUV
5-year residual value: 37.5 percent or $7,286
Engine: Four-cylinder, 2.5-liter, 170 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: Drive computer, XM satellite radio, MP3/WMA capability
Reasons it will hold value: It's a fuel-efficient SUV and good for those wishing to downsize a bit.

Worst Value Holders

10. Hyundai Entourage

MSRP: $23,995
Style: Minivan
5-year residual value: 20 percent or $4,799
Engine: V-6, 3.8-liter, 250 horsepower
Warranty: Limited -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Projector-type fog lights, dual front automatic temperature control
Reasons it won't hold value: It's a combination of product deficiencies, poor marketing and historical depreciation of Hyundai vehicles.

9. Chevrolet Malibu Classic

MSRP: $20,550
Style: Sedan
5-year residual value: 20 percent or $4,110
Engine: Four-cylinder, 2.4-liter, 169 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/100,000 miles
Special features: OnStar with standard one-year directions and connections plan, three-month trial of XM satellite radio
Reasons it won't hold value: The body style is in its last generation. It is sold to rental fleets. As such, rental companies sell them after a year, leaving a large supply of them and making resale prices low.

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8. Kia Optima

MSRP: $17,030
Style: Sedan
5-year residual value: 20 percent or $3,406
Engine: Four-cylinder, 2.4-liter, 162 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system, optional trip computer, optional MP3-compatible audio system
Reasons it won't hold value: It's primarily a rental fleet car. The Kia brand typically sees high depreciation rates largely because of past quality issues.

7. Suzuki Forenza

MSRP: $13,999
Style: Sedan
5-year residual value: 19.5 percent or $2,730
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: Eight-speaker AM/FM/CD audio system with MP3/WMA playback, heated outside mirrors
Reasons it won't hold value: It's not really designed for the U.S. market. It's primarily a fleet car. Also, this is the last year this model will be made.

6. Hyundai Accent

MSRP: $10,775
Style: Subcompact
5-year residual value: 19.3 percent or $2,080
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years, 100,000 miles
Special features: AM/FM/XM/CD/MP3 audio system with auxiliary input jack
Reasons it won't hold value: It's a subcompact that's often used for rental fleets. The brand has a history of high depreciation for perceived quality issues.

5. Kia Rio

MSRP: $11,540
Style: Subcompact
5-year residual value: 19.2 percent or $2,216
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Optional AM/FM/CD audio system
Reasons it won't hold value: Similar to the Hyundai Accent's reasons -- it's a subcompact fleet car with past quality issues.

4. Suzuki Reno

MSRP: $13,299
Style: Subcompact
5-year residual value: 19 percent or $2,527
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: AM/FM/CD/cassette stereo with eight speakers, heated rearview mirrors
Reasons it won't hold value: Although it's priced significantly lower than its direct competitors, such as the Honda Fit, the Reno is known to underperform, get poor fuel efficiency for its class, ride badly and fall short in refinement.

3. Kia Spectra

MSRP: $13,545
Style: Compact
5-year residual value: 18.8 percent or $2,546
Engine: Four-cylinder, 2.0-liter, 138 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system with audio input jack for MP3 devices
Reasons it won't hold value: For many of the same reasons other Kias won't -- it's a rental fleet car and it has perceived quality issues.

2. Chevrolet Uplander

MSRP: $22,320
Style: Van
5-year residual value: 18.5 percent or $4,129
Engine: V-6, 3.9-liter, 240 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: OnStar with one-year Safe and Sound Plan, AM/FM/CD stereo with MP3 playback and auxiliary input jack
Reasons it won't hold value: Its gimmick of taking a minivan and trying to make it look like an SUV didn't work. This model will not be produced after this year.

1. Lincoln Town Car
MSRP: $45,295
Style: Sedan
5-year residual value: 18 percent or $8,153
Engine: V-8, 4.6-liter, 239 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 6 years/70,000 miles
Special features: Heated front seats, universal garage door opener.
Reasons it won't hold value: It's a fleet car and it's not fuel efficient (it's only sold as a V-8).

 

wouldn't mind getting one of these after 5 years and use it as a beater

 

Mostly hyundais, kias, and suzukis toward the end

Hmmmm, no AMGs?

 

beat this... my ITR residual value after 5 yrs was 82%

wow... Korean cars dominate the worst list..

I didn't know Jeep residual value was up there.

 

It's kind of surprising to see the Viper on there, it's so different from every other car on the list, even though it holds it's value well, $33k for a 5 year old Viper still sounds like a good deal to me

I'm really surprised to see no Jags, Caddys or AMG Mercedes on there. It seems like the values of those cars drop really sharply after a few years

 

no accord?

 

no love for lexus?

 

Not too sure of the accuracy of that report as far as the best vehicles go. For instance, VWs are known for their horrible reliabilty issues and depreciate significantly. Also G35s are now used in rental fleets which will take a significant toll on their future resale values. Also, where is the Prius, whose used value is now higher than its initial purchase value.

Highly questionable article IMHO.

 

I remember at one time Toyota had about 5 or 6 of the spots on the ten best lists that for holding value. I guess they now have two.

 

and how many does kia/hyundai have on the worst list?

I wonder how much value Genesis will lose - after 3 years, it might very well negate any money use save on buying it over the GS/5/E

 

How does that matter? If that was a big factor then Camry's would be worth next to nothing as they are a huge fleet seller.

It's not so much about a car being available for rent as it is the level of demand there is for a car when it's time for resale.

The G has pretty consistently been at the top in retaining its value.

 

G sales are between 10-11% in rental fleets. It is obvious to me the G35 coupes/G37 coupes hold their value. The sedans do not. They should just state the coupe.

 

 

I'd like to read where you are getting this information. Thanks in advance

 

Fleet sales here
http://www.automotive-fleet.com/Chan...tatistics.aspx

Take 10 minutes and look at Autotrader, CarMax, your local paper. The G35 coupe holds its value a lot stronger than the G35 sedan. The G35 sedan has average value, the same price as a same year IS 300.