Kelley Blue Book Announces Winners Of 2012 Best Resale Value Awards

Kelley Blue Book's www.kbb.com, a provider of new and used vehicle information, announced the all-new 2012 model-year vehicle winners of its annual Best Resale Value Awards, recognizing current and forthcoming vehicles for their projected retained value throughout the initial five-year ownership period. Since depreciation (or loss of value) is typically a car buyer’s primary expense during ownership, these awards are designed to help consumers make more informed car-buying decisions.

These awards honor vehicles expected to maintain the greatest proportion of their original Manufacturer’s Suggested Retail Price (MSRP) after five years of ownership. Low-volume vehicles and vehicles with a MSRP of more than $60,000 are excluded from award consideration, except in the luxury and high-performance categories.

2012 BEST RESALE VALUE: BRAND - Toyota
2012 BEST RESALE VALUE: LUXURY BRAND - Lexus
2012 BEST RESALE VALUE: BY VEHICLE CATEGORY - SUBCOMPACT CAR: Honda Fit; COMPACT SUV: Jeep Wrangler; COMPACT CAR: Honda Civic; MID-SIZE SUV: Toyota FJ Cruiser; MID-SIZE CAR: Toyota Camry; FULL-SIZE SUV: Chevrolet Traverse; FULL-SIZE CAR: Nissan Maxima; LUXURY SUV: Audi Q7; NEAR-LUXURY CAR: Lexus IS; HYBRID SUV: Lexus RX 450h; LUXURY CAR: Audi A5; MID-SIZE PICKUP: Toyota Tacoma; SPORTS CAR: Chevrolet Camaro V-6; FULL-SIZE PICKUP: Ford F-Series Super Duty; HIGH-PERFORMANCE CAR: Chevrolet Camaro SS; VAN: Honda Odyssey; HYBRID CAR: Honda Civic Hybrid; WAGON: Subaru Outback; ELECTRIC CAR: Chevrolet Volt
2012 BEST RESALE VALUE: TOP 10 CARS - Audi Q7, Jeep Wrangler, Chevrolet Camaro, Lexus RX, Honda CR-V, Nissan Frontier, Hyundai Tucson, Toyota FJ Cruiser, Infiniti FX, Toyota Tacoma

While most car buyers today consider sticker price one of the most significant numbers when choosing a new vehicle, the editors at kbb.com recommend that shoppers consider a number they won’t find on any window sticker: the 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 35.5 percent of its original value after a five-year ownership period, meaning that a $50,000 new car today will only be worth somewhere close to $17,750 after five years. Vehicles with average or below-average resale values are generally plentiful in the marketplace and easy to find. 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 rarely discounted and tend to generate high levels of consumer interest.

"All of the car manufacturers have raised the bar over the last few years with their content and design," said Eric Ibara, Director of Residual Consulting at Kelley Blue Book. "Vehicles today are holding their value very well, especially trucks and many of the redesigned cars out today, including the Hyundai Elantra, up eleven points and the Focus up six points."

Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. Just because a car is expensive or from a luxury brand does not necessarily mean it will hold its value better than an inexpensive car down the road. In fact, because resale values are calculated as a percent of original MSRP, an expensive vehicle has to command a relatively high price later as a used car to maintain its residual value. For example, a $60,000 vehicle has to be worth $21,000 five years later to have a residual value of thirty-five percent. At this price point, not only will it compete with other used luxury vehicles, but it also will compete with some new vehicles in the marketplace. Meanwhile, an $18,000 vehicle only needs to be worth $6,300 five years later to have the same thirty-five percent residual value, and at that price point it will not compete at all with new vehicles.

While the company’s Residual Value Guide has been published since 1982, Kelley Blue Book established its annual Best Resale Value Awards in 2003. The publication 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 Kbb’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. These residual values are used by manufacturers, banks, financial institutions, governmental agencies, and the automotive leasing industry.

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