Some of the auto industry's most desirable cars are also the ones with the best resale values; no surprise there. Surveys from Automotive Lease Guide and Kelly Blue Book show Acura, Honda, and Lexus leading the rankings. But U.S. cars fare poorly, with only GMC and Saturn cars above average (barely) in one survey and just four models (out of 23) ranked best in class.
Among mainstream brands, ALG ranked Honda best for resale value after three years, retaining on average 54 percent of the initial price. Toyota, Subaru, and Volkswagen all had residuals over 50 percent. Among luxury brands, Lexus unseated BMW for the number-one spot after three years, although the top three were rounding-error-close: Lexus at 50.8 percent, BMW at 50.7 percent, and Audi at 50.4 percent. The lowest-ranked brands and models, such as Buick, Jaguar, Kia, and Lincoln, retain as little as one-third of their value.
According to Kelley Blue Book, Honda and Acura tie as the automakers with the best general resale value among all their models after five years of ownership. Acura/Honda, BMW/Mini, Lexus/Toyota/Scion, and Volkswagen all have multiple vehicles in the top 10. Individual models that best retain their value in the KBB.com rankings are (in alphabetical order) the Acura TSX , BMW 5 Series , Honda Civic , Lexus IS , Mini Cooper, Pontiac Solstice, Scion tC, Toyota Prius, Volkswagen GTI, and Volkswagen Eos. KBB.com also listed the top models by vehicle segment (see the table below).
Note that just four of the 23 models come from the traditional U.S. automakers, further evidence of the challenges facing Detroit. For the U.S. automakers, it's a vicious circle: Because of excess capacity and mixed demand, Chrysler, Ford and GM have to discount new models, extend rebates, subsidize leases, and ship cars off to corporate and rental fleets. All those tactics depress new car prices, and when new car prices are reduced, that ripples back to depress the value of used cars.
Few people want to pay $15,000 for a three-year-old $30,000 car when the new version is discounted to less than $25,000. It does, however, make for some good deals on less desirable cars coming off lease after three or four years.
For Bill's column on using tech to find good deals for used cars, click here.
Kelley Blue Book 2007 Best Resale Value
After 5 years of ownership
Sedan: Acura TSX
Coupe: Honda Civic
Convertible: Mini Cooper
Wagon: Volkswagen Passat
Hatchback: Mini Cooper
Luxury: BMW 5 Series
Pickup: Toyota Tacoma
Sport Utility: Acura MDX
Van / Minivan: Honda Odyssey
Hybrid: Toyota Prius
Automotive Lease Guide residuals
Non-luxury brand: Residual
1. Honda: 53.7%
2. Toyota: 51.4%
3. Subaru: 51.1%
4. Volkswagen: 51.0%
5. Mazda: 49.3%
6. Nissan: 49.0%
7. Saturn: 47.4%
8. GMC: 47.3%
Industry average: 46.1%
Below average: Chevrolet, Pontiac, Jeep, Ford, Chrysler, Hyundai, Mitsubishi, Dodge, Mercury, Suzuki, Buick, Kia.
Luxury brand: Residual
After 3 years of ownership
1. Lexus: 50.8%
2. BMW: 50.7%
3. Audi: 50.4%
4. Infiniti: 49.8%
5. Acura: 49.6%
6. Mercedes-Benz: 48.7%
Industry average: 48.5%
Below average: Land Rover, Cadillac, Volvo,Saab, Lincoln, Jaguar.
Automotive Lease Guide best residuals by segment
Segment: Winner
Compact Car : Volkswagen Rabbit
Midsize Car : Toyota Camry
Fullsize Car : Toyota Avalon
Sports Car : Pontiac Solstice
Near Luxury Car : Lexus IS 250/350
Luxury Car : BMW 6 Series
Minivan : Honda Odyssey
Premium Utility: Land Rover Range Rover Sport
Compact SUV : Jeep Wrangler
Midsize SUV : Toyota 4Runner
Fullsize SUV : Mercedes GL Class
Compact Truck : Toyota Tacoma Pick-up
Full-size Truck : GMC Sierra/Chevrolet Silverado
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