Residual value is a common concern of car buyers, especially during tough times like these. Accordingly, shoppers might be interested to know that Kelley Blue Book's kbb.com® 2010 Residual Value Study has given the Toyota brand its Best Resale Value Award. (Curiously, this is the first time that Toyota has received the honor.) Toyota's upscale sibling, Lexus, nabbed the Best Resale Value Award for luxury brands.
But Toyota Motor Corporation wasn't the only winner of the day. On the make and model front, Kelley singled out ten vehicles for their superior resale value: the 2010 Audi A5, the 2010 BMW M3, the 2010 Chevrolet Camaro, the 2010 Chevrolet Corvette, the 2010 Honda CR-V, the 2010 MINI Cooper, the 2010 MINI Cooper Clubman, the 2010 Toyota Prius, the 2010 Toyota RAV4, and the 2010 Toyota Tacoma. Although no Ford or Chrysler vehicles made Kelley's top ten list, the Ford F-Series Super Duty and the Ford Taurus did come in at the top of their categories (full-size pickup and full-size car, respectively). We should also note that Jeep was named the top domestic brand, with its models retaining almost 36% of their value after five years.
At the bottom end of the scale, we find an assortment of Hyundais, Kias, Mitsubishis, and two Ford cars. From Kelley's release:
The 2010 vehicles with the lowest projected resale value after five years of ownership include: Hyundai Azera, Kia Amanti, Kia Optima, Kia Rio, Kia Rondo, Kia Sedona, Lincoln Town Car, Mercury Grand Marquis, Mitsubishi Endeavor and Mitsubishi Galant. Half of these 2010 model-year vehicles are projected to maintain less than 20 percent of their original MSRP after five years of ownership.
Generally speaking, 2010 models are projected to fare slightly worse than their 2009 predecessors. According to Kelley, "In 2009, the average vehicle maintained 34.2 percent of its original value after five years in contrast to 2010 models, which are projected to maintain an average of 32.6 percent of their original Manufacturer's Suggested Retail Price (MSRP)." That's good information to know -- particularly now that our wise investments need to be just a tad wiser.
Check the full press release below for more information.
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KELLEY BLUE BOOK’S KBB.COM® RELEASES 2010 RESIDUAL VALUE ANALYSIS
Toyota and Lexus Claim Top Honors for 2010 Models, U.S. Brands Improve Resale Values
IRVINE, Calif., December 2, 2009 – Kelley Blue Book www.kbb.com, the leading provider of vehicle values and forecasts, today announces the 2010 model-year vehicles projected to retain the greatest amount of their original retail prices after five years of ownership. Kelley Blue Book’s residual values are a reflection of current vehicle data, market conditions for each vehicle, competition in each segment, expectations of the future economy and the combined experience of Kelley Blue Book’s team of statisticians, economists and pricing analysts.
Using information gained from Kelley Blue Book’s analytical and predictive models for both new- and used-vehicle values and its economic forecasts, the company determined one overall brand and one luxury brand as having the best projected overall resale value across their respective 2010 fleets, named resale value leaders in 16 major vehicle segments, and honored the top 10 overall residual value leaders for 2010.
2010 BEST RESALE VALUE: BRAND
2010 BEST RESALE VALUE: LUXURY BRAND
2010 BEST RESALE VALUE: TOP 10 MODELS
MINI Cooper Clubman
Chevrolet Camaro SS
2010 BEST RESALE VALUE: BY VEHICLE CATEGORY
MID-SIZE PICKUP: Toyota Tacoma
HIGH-PERFORMANCE CAR: Chevrolet Camaro SS
FULL-SIZE PICKUP: Ford F-Series Super Duty
HYBRID/ALT. FUEL CAR: Toyota Prius
COMPACT UTILITY VEHICLE: Honda CR-V
COMPACT CAR: MINI Cooper Clubman
MID-SIZE UTILITY VEHICLE: Toyota Highlander
MID-SIZE CAR: Honda Accord
FULL-SIZE UTILITY VEHICLE: Honda Pilot
FULL-SIZE CAR: Ford Taurus
LUXURY UTILITY VEHICLE: Lexus RX 350
NEAR-LUXURY CAR: Lexus IS
HYBRID/ALT. FUEL UTILITY VEHICLE: BMW X5 Turbo Diesel
LUXURY CAR: Audi A5
VAN: Toyota Sienna
SPORTS CAR: Nissan 370Z
(All values based on the November/December 2009 Kelley Blue Bookâ Residual Value Guide. Top 10 models appear in alphabetical order).
A Look at 2009 and 2010 Residual Forecasts
For the last several years, the average vehicle has maintained close to 35 percent of its original value after five years. The downturn in the economy has hit the automotive sector hard in the last year. Consumers are feeling the pinch not just in the depreciation of their home, but also in the value of their vehicle, as Kelley Blue Book is seeing residual values of new cars suffer compared to last year. In 2009, the average vehicle maintained 34.2 percent of its original value after five years in contrast to 2010 models, which are projected to maintain an average of 32.6 percent of their original MSRP.
The last 18 months have been extremely volatile from both a sales and valuation perspective. However, based on Kelley Blue Book’s latest valuation methodology and forecasting abilities, the company’s analysts project that the New Year should mark a return to more normal depreciation patterns. Additionally, it is expected that the lower rental volume will contribute to a more limited supply of used cars, which may result in rising values in some segments in the coming years.
While the government took its time declaring the nationwide recession, it has been quick to announce that economically, we have turned the corner. As data shows a healthier economy in 2010, Kelley Blue Book analysts expect that recovery in the auto industry will be gradual and prolonged. One factor helping the industry is stabilizing gas prices. Kelley Blue Book is forecasting that gas prices will be stable through the next three to five years with per-gallon prices remaining between $2.66 and $3.50. This predicted long-term stability in fuel prices reduces market variability and allows financial institutions to better manage their lease portfolio.
Best Resale Value Brands
This year’s 2010 overall Best Resale Value: Brand award goes to Toyota. For the first time, Kelley Blue Book also named a Best Resale Value: Luxury Brand, and that prestigious honor is awarded to Toyota’s upscale sibling, Lexus. On average, 2010 vehicles under the Toyota nameplate are expected to maintain 38.8 percent of their MSRP after five years, and Lexus vehicles are projected to maintain 39.3 percent.
For 2010, the brands projected to best maintain their value should be congratulated for making it though a volatile marketplace defined by economic uncertainty and significant drops in fuel prices. On the 2010 list, the gap between the brands at the top and the rest of the pack is closing. Overall, products are getting better in quality and in value, driving greater competitiveness and slower depreciation.
Criteria for Kelley Blue Book’s Best Resale Value Awards require a brand to have a minimum of four nameplates in its portfolio, a factor that eliminates the highest-ranking brand performer year-after-year, MINI, which carries an average five-year residual percentage of 45.9 percent for its 2010 models.
Below is a look at some of the brand ranking changes over the last year:
Top 10 Brands: Best Resale Value 2010
|1. Lexus 39.3||1. Honda 44.5|
|2. Toyota 38.8||2. Toyota 42.7|
|3. Honda 38.0||3. Volkswagen 40.9|
|4. BMW 37.2||4. Subaru 39.4|
|5. Subaru 36.6||5. Lexus 38.7|
|6. Jeep 35.7||6. BMW 38.0|
|7. Acura 35.2||7. Infiniti 37.3|
|8. Infiniti 34.5||8. Acura 36.8|
|9. Audi 34.2||9. Audi 36.5
|10. Nissan 33.7||10. Nissan 36.5|