With
2005 model year vehicles hitting the dealership lots, Kelley Blue
Book, (www.kbb.com)
America's No. 1 resource for new and used vehicle information,
is reporting the top 10 2005 model year vehicles that will best
hold their value over the next five years, as well as which vehicle
will hold its value best by category and which brand holds its
value better than any other.
Based
on current vehicle data, market conditions for each vehicle, expectations
of the future economy and the combined experience of Kelley Blue
Book's editorial team, the following lists forecast which 2005
model vehicles will retain the greatest amount of their original
MSRP (manufacturer's suggested retail price). Savvy consumers
in the market for a new vehicle may want to take a closer look
at the following vehicles.
2005
Model Year Vehicles KBB Forecasts Will Best Hold Their Value
Over Next Five Years
OVERALL LIST
|
Acura
TL |
Mercedes
Benz CLK 320 Cabriolet |
BMW
5 Series |
MINI
Cooper |
Infiniti
G35 Coupe |
Nissan
350 Z |
Lexus
GX 470 |
Porsche
Cayenne |
Mazda
RX-8 |
Volvo
XC90 |
(High
performance, low volume vehicles or vehicles with an original
MSRP over $60,000 were not taken into consideration on the overall
list. Values based on the September/October 2004 Kelley Blue Bookâ
Residual Values Guide.)
2005
Model Year Vehicles KBB Forecasts Will Best Hold Their Value
Over Next Five Years
BY CATEGORY
|
SEDAN:
Honda Civic |
LUXURY:
BMW 5 Series |
COUPE:
Infiniti G35 |
PICKUP:
Toyota Tacoma PreRunner |
CONVERTIBLE:
Nissan 350 Z Touring Roadster |
SPORT
UTILITY: Volvo XC90 |
WAGON:
Volkswagen Jetta Wagon TDI* |
VAN/MINIVAN:
Honda Odyssey |
HATCHBACK:
MINI Cooper |
|
(Kelley
Blue Book vehicles that are expected to hold the greatest amount
of value in their category over the next five years. Values based
on the September/October 2004 Kelley Blue Bookâ Residual
Values Guide.) *TDI not available in all states.
BMW
Which
Vehicles Just Missed the List and Really Missed the List
According
to the Kelley Blue Book editorial team, several newly introduced
2005 model vehicles are expected to retain a high percentage of
their value looking five years into the future, but fall just
short of making this year's list. Vehicles just missing this year's
top 10 list include the Chevrolet Corvette, the Mazda 3 Hatchback
and the Volkswagen GTI.
Some
vehicles really don't hold their value well. These types of vehicles
generally have high production rates or are in low demand in the
marketplace. These vehicles are often in rental fleets, have a
low perceived value, high maintenance costs and may have a design
that does not age well. Some of the 2005 vehicles with one or
more of these conditions include the Pontiac Aztec, Chrysler Sebring
Sedan, Jaguar X-Types, Mitsubishi Diamante, Mercury Sable, and
the Suzuki Vitara.
It
Depreciates the Second You Drive It off the Lot
Just
how much does a vehicle depreciate after it rolls off the lot?
It's not the car that depreciates the second it rolls off the
dealer lot, it's really just that the transaction changed. According
to the Blue Book editors, the sale goes from being a dealer-to-consumer
transaction to either a trade-in or private party sale. In this
new transaction you lose tax, license, registration and destination
charges, all things you pay for when a car is new, that you cannot
charge when reselling it. It's all of these things combined that
create the instant depreciation.
Vehicle
Depreciation
Depreciation
is inevitable. Some cars, like the ones on this year's Top 10
lists, have a slower depreciation rate than others. On average,
a vehicle will only retain about 35 percent of its original value
after five years, but the Kelley Blue Book top 10 list of vehicles
will retain closer to 50 percent. "The depreciation rate
of a particular vehicle is dependant upon market conditions, supply
and demand," said Charlie Vogelheim, executive editor of
the Kelley Blue Book. "A highly popular or desirable car
with limited availability will depreciate slower than a car that
is in excess supply or less desirable."
According
to the Kelley Blue Book editorial team, there are things that
buyers absolutely expect to be found in a car today. If they are
not there, it could hurt the value and desirability of that car
down the road. Those items include: power windows and door locks,
a tilt wheel and cruise control. Wheels have also come a long
way from the days of hubcaps. Picking a car with alloy or premium
wheels will likely help you sell it down the road. "These
items don't add value to your car, value is actually deducted
if they are not there," said Vogelheim.
What
can also hurt your car's ability to garner top dollar down the
road? The Blue Book editors say the color of your car is just
one of those things. It's easy to sell a white, black or silver
car. Some variations of red and blue are o.k. Pick a green, purple,
yellow or orange vehicle and you will likely hurt your chances
of getting the maximum value when selling or trading the car in
later. Vogelheim says personalizing a car with custom paint work,
aftermarket products or other wild modifications also make the
car less desirable to others. "Sometimes we see people putting
thousands of dollars worth of aftermarket options and customization
into a vehicle and it's likely that they'll never get it back.
The very things that personalize the car for you can make it less
desirable to a broad customer base when you sell it later."
The
Blue Book editors recommend looking for the following items in
a new car to assist in slowing its depreciation:
- Choose
colors like black, white and silver
- Make sure the vehicle has power windows, power door locks, tilt
wheel and cruise control
- Alloy
or premium wheels
- CD
player
- If
the model has an upgraded engine option, the larger engine will
most often hold value better
- Remote
entry
- Leather
In
today's Blue Book you can often add value to your car if the following
options are included:
Sun
Roof/ Moon Roof |
Leather |
ABS
(Automatic Braking Systems) |
CD
Player or Disc Changer |
Premium
Sound System |
Roof
Rack* |
Alloy
Wheels |
Third
Row Seating* |
*These
options add value on wagons, SUVs and other vehicles as appropriate.
Kelley
Blue Book's new car pricing and used car values are the most accurately
and frequently reported on the Internet today. All Kelley Blue
Book values are based on data obtained from manufacturers, dealers,
auction data, remarketers and consumers via a feedback tool on
the company's Web site, kbb.com.
Kelley
Blue Book values take into consideration the region of the vehicle,
its engine, transmission, trim style, optional equipment, current
mileage and current condition. In addition to actual vehicle details,
other considerations that determine a vehicle's value include
the current economy and supply and demand. Kelley Blue Book reports
factual and timely data reflecting the current marketplace for
consumers, financial institutions, governmental agencies and the
automotive industry.
For
more information on Kelley Blue Book values, see www.kbb.com.
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