November 2007: Kelley Blue Book, the authority on vehicle valuation releases its annual awards for automobile resale values.
Resale value is defined as the value of a vehicle after a period of use. Standardized valuation began in 1918 when a Los Angeles used car dealer, Les Kelley, circulated lists of cars he wanted for inventory, and prices he would pay. The first Kelley Blue Book was published in 1926 and has been a cornerstone of the automobile business ever since.
KBB Best Resale Value Awards honor vehicles expected to maintain the greatest proportion of their original retail price after five years of ownership. Listed below are winners from the 2008 model year.
Sedan: Honda Civic Coupe: Infiniti G37
Convertible: MINI Cooper Wagon: Scion xB
Hatchback: Scion TC Luxury: BMW 6 series
Pickup: Toyota Tundra SUV: Acura MDX
Minivan: Honda Odyssey Hybrid: Honda Civic Hybrid
High Performance: Chevrolet Corvette Z06
Top Ten Models (alphabetically):
Chevrolet Corvette Scion xB
Honda Civic Toyota Corolla
Infiniti G37 Volkswagen Eos
MINI Cooper Volkswagen Jetta
Scion TC Volkswagen Rabbit
While these estimates indicate a vehicle’s worth if/when sold, resale value should also be considered when purchasing a new vehicle. Consumers should understand that high values directly indicate a vehicle of quality and longevity.
Shoppers should consider many factors when choosing a new vehicle. Many vehicles present well on the showroom floor, but all that glitters is not gold. A vehicle with a low projected resale value will surely deteriorate more quickly than one with a high projected value.
Unlike investments, consumers will be using their commodities on a daily basis. Premature devaluation might indicate a greater loss of appearance, performance, or reliability during the initial ownership period.
Nevertheless, when trading-in a car, all bets are off. Despite high projected value, a certain vehicle may be out of fashion, lowering its market value. For example, new and used gas-guzzling SUVs are worth much less when gas prices are high. Trendy colors and options may also present problems down the road.
Just like buying a house near a freeway, you may not mind the noise, but it’ll sure be harder to sell when you need to move.