Toyota, Honda Retain Value Longer Say Analysts At KBB, ALG

November 27, 2012

Some car buyers get so wrapped up in the excitement of purchasing a new car that they forget one important thing: their car is an investment that will someday pay dividends. According to two new studies, Toyota and Honda vehicles pay off better than their competitors by retaining more of their value.

The first of the two studies comes from Kelley Blue Book, which has announced the winners of its 2013 Best Resale Value Awards. According to a press release, the awards project future values "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." 

After crunching all those numbers, KBB put the 2013 Toyota FJ Cruiser at the top of the heap. The SUV is projected to retain a very impressive 63% of its value after 60 months. 

Rounding out KBB's top ten are 2013 models of the Toyota Tacoma, Jeep Wrangler, Honda CR-V, Toyota 4Runner, Toyota Land Cruiser, Porsche Cayenne, Lexus LX, Honda Civic, and Scion tC -- the last of which should sell for about 46.5% of its current sticker price five years down the line. KBB also analyzes vehicles by segment, where Toyota fared equally well.

As a result, KBB has given Toyota its Best Brand Award and Lexus its Best Luxury Brand Award. The companies will be officially recognized at this week's Los Angeles Auto Show.

Next up, we have the 14th Annual Residual Value Awards from ALG, a marketing and research firm serving North America's auto industry. ALG's method of evaluation is similar to KBB's, though it looks at projected values after three years rather than five. According to a blog post, "Award recipients were chosen after a careful evaluation of vehicle criteria, including segment competition, historical vehicle performance and industry trends."

Like KBB, ALG ranks vehicles by segment. This year, there's great news for fans of Asian and European marques, but not so much for Detroit. Honda, Hyundai, and and Toyota rule the roost, earning praise for vehicles ranging from the subcompact Honda Fit to the full-size Toyota Land Cruiser SUV.

Ultimately, ALG put Honda at the top of its Mainstream Brand Rankings, followed by Hyundai, Scion, Subaru, Mazda, Toyota, Nissan, Kia, Volkswagen, and Mitsubishi. Ford was the best-ranked Detroit brand, coming in at #11. Dodge, Buick, GMC, and Chevrolet followed in the #12 - #15 spots.

On the luxury scale, Acura took top honors, followed by Infiniti, Audi, Lexus, and Mercedes-Benz. BMW arrived at #6, followed by Cadillac, Porsche, Volvo, and Lincoln. 

As with KBB, ALG announced its awards on the eve of the 2013 Los Angeles Auto Show, where many of our TCC team will be kicking tires and conducting interviews this week. For a peek at what's to come, check out our LA Auto Show preview.

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