Consider Best Resale Value When Buying A Car

Consider Best Resale Value When Buying A Car


KBB says that the 2010 Ford Taurus should retain the best residual value of any full size car in five years.

That sporty Dodge Charger SXT in white gold pearl is a real head turner and it is one of the fastest sedans on the market. But when it comes to anticipated resale value the Charger is not a good deal, something every car shopper should consider when purchasing a new car.

So, how do you know what cars for sale today will be a good deal in 2014 or 2015? That’s easy: track recent resale trends for that model or, if an all new model, the brand as a whole can give you a good idea whether your car will do a good job of retaining its value than most.

Residual Value Guide

Consumers have long turned to Kelley Blue Book (KBB) to find out what their cars are worth, how much they should pay for a used car, and which cars have the best resale value. To predict resale value, the Kelley Blue Book Official Residual Value Guide is often cited as the best source for determining future value, telling car shoppers which brands are best and which models lead the resale value pack.

For 2010, KBB says that the best resale brand is Toyota while the best luxury brand is Lexus. From there, KBB breaks its winners down into segments and top models.

According to KBB, the following ten models stand the best chance of having a top resale value in alphabetical order:

  • Audi A5
  • BMW M3
  • Chevrolet Camaro SS
  • Chevrolet Corvette
  • Honda CR-V
  • MINI Cooper
  • MINI Cooper Clubman
  • Toyota Prius
  • Toyota RAV4
  • Toyota Tacoma

KBB says that new cars generally keep only 35% of their value after five years of ownership. This is important to know because if you pay $30,000 for your car, then it may only be worth just $10,500 after five years of ownership. Some vehicles fare much worse while others tend to hold their value better for the long term.

Which Options Matter?

While consumers may think well optioned cars increase their value, this theory usually isn’t true unless that happens to be a navigation system in a luxury car or a performance package for a sports model.

Regional preferences should be factored in too as a two-wheel drive vehicle won’t have as strong of a resale value in colder climates while all- or four-wheel drive will. In warmer climates color matters as lighter colored cars are more in demand than darker cars.

Adv. – If you’re planning to buy a new car, a thorough study of the IIHS results can ensure that the vehicle you buy is a safe one. As you do your research you’ll want to get a quote or find a dealer to set up a test drive. Importantly, arranging your own auto financing can save you hundreds of dollars, allowing you to take the manufacturer’s rebate instead of their low-rate financing.

Photo Credit: Ford Motor Company


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Categories: Autos Express

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".