New Cars And Trucks That Will Return The Highest Resale Values – Forbes
Astute new-vehicle shoppers tend to face a hodge-podge of numbers in the course of conducting their research, from horsepower and torque ratings to passenger and cargo volume measurements and fuel economy estimates. But the number-one number that packs the most punch in terms of a motorist’s financial bottom line is a car or truck’s predicted depreciation.
How much of its original value a vehicle retains down the road is typically the richest variable in a vehicle’s long-term ownership costs, next to insurance premiums and fuel consumption. According to Kelley Blue Book, an average 2017 model-year vehicle retains only about 32.9 percent of its original value after a five-year ownership period. Picking a car that has a higher expected resale value – also known as residual value – not only affects how much a given model will be worth at trade-in time for those who purchase a car or truck outright but largely determines how steep or affordable monthly payments will be among those who lease.
Choosing a vehicle that inherently enjoys a higher resale value becomes increasingly critical with costlier cars and trucks, simply because there’s more money at stake to lose. For example, consider two cars that both retain 30% of their original values after five years: the one that originally sold for $20,000 will have lost $14,000 at trade-in-time, while another that went for $60,000 will have cost its owner $42,000.
To help car shoppers identify the top performers in this regard the valuation experts at KBB just issued their 2017 Best Resale Value Awards, with the import brands again dominating with 17 out of the first-place finishers in each of 22 categories. Toyota was named the top brand for resale values this year and is responsible for the vehicle having the best resale values of all, the compact Tacoma pickup truck, which KBB reckons will hold onto 71% of its original value after 3 years, and 58.4% after 5 years. Porsche took the honors among luxury marques. We’re featuring the top 10 models among all 2017 vehicles in the accompanying slideshow and video.
Among individual automakers, General Motors took top spots in seven out of those 22 categories between its Chevrolet and GMC brands, with Honda, Subaru, and Lexus placing four models each. Among the top performers overall, nine out of 10 are pickup trucks or SUVs which reflects their fast-growing popularity these days. The full list of by-category award winners and full details about KBB’s Best Resale Value Awards can be found here.
“Toyota and Porsche notably capture the top brand and luxury brand awards, delivering incredible resale value across their lineup of vehicles,” says Eric Ibara, director of residual values for Kelley Blue Book. “Reflective of the market overall, the majority of the Top 10 Best Resale Value vehicles this year are trucks and SUVs, with the exception of the Subaru WRX, which is further testament to the strength these segments will carry in the future.”