Best-10-Worst-10-Cars-for-Holding-Value

[cubanix]

Best 10, Worst 10 Cars for Holding Value
by Fritz Esker
Wednesday, August 27, 2008provided byBankrate

If you spend tens of thousands of dollars on a car, you want to get something back for your investment when it's over. Inevitably, the value of your car will depreciate, but you'd like it to have as much trade-in value as possible.

This doesn't just go for buying a car. When you lease a car, the amount it will be worth at the end of the lease is critical in determining your monthly lease payment price. It's called residual value, an important factor to keep in mind if you're shopping for a new car.

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In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). What do these cars have in common?

"You see a much better alignment of production with market demands," says James Clark, editorial director of ALG.

What about cars that will hold the least value after five years?

"You'll see a lot of brands we traditionally have high-depreciation rates for," says Clark.

Some of these vehicles are heavily used as fleet vehicles for rental car companies; some (i.e. Korean brands like Hyundai and its subsidiary, Kia) have perceived quality issues, even though Clark says the Korean brands' "quality has actually gotten a lot better, but their perceived quality is still low."


Best Value Holders:

1. Volkswagen R32

MSRP: $32,990
Style: Performance
5-year residual value: 43 percent or $14,186
Engine: six-cylinder, 3.2-liter, 250 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 5 years, 60,000 miles
Special features: SIRIUS satellite radio, power glass sunroof, multi-function trip computer
Reasons it will hold value: It's a reasonably priced, low-volume car. It's a descendant/variant of the Volkswagen GTI, also known for its quality.

2. Jeep Wrangler

MSRP: $19,680
Style: SUV
5-year residual value: 42.9 percent or $8,443
Engine: Six-cylinder, 3.8-liter, 202 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- lifetime limited warranty, certain restrictions apply
Special features: AM/FM radio with in-dash CD player & MP3 capability, Sentry Key Theft Deterrent System
Reasons it will hold value: It's cornered the niche market for people who like to do a lot of off-roading and has few competitors.

3. Mini-Cooper

MSRP: $18,700
Style: Hatchback
5-year residual value: 42.7 percent or $7,985
Engine: Four-cylinder, 1.6-liter, 118 horsepower
Warranty: 4 years/50,000 miles
Special features: Four years of complimentary roadside assistance, toggle switch controls, fully electronic throttle
Reasons it will hold value: It's sporty, fuel-efficient, reasonably priced and covers a wide spectrum of customers. It also has a good reputation.

4. Scion XB

MSRP: Manual $16,370, automatic $17,320
Style: Compact station wagon
5-year residual value: 39.5 percent or $6,466(manual)/ $6,841 (automatic)
Engine: Four-cylinder, 2.4-liter, 158 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years, 60,000 miles
Special features: Tachometer and trip meter, 60/40-split folding rear seat, AM/FM CD and iPod capability
Reasons it will hold value: It's relatively fuel-efficient, reasonably priced and it has more space than compacts with similar prices.

5. Honda CR-V

MSRP: $20,700
Style: SUV
5-year residual value: 39.4 percent or $8,156
Engine: Four-cylinder, 2.4-liter, 166 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: XM satellite radio, Honda satellite-linked navigation system, digital audio card reader
Reasons it will hold value: It's fuel-efficient for an SUV, seats five and has plenty of storage room.

6. Toyota RAV4

MSRP: $21,500
Style: SUV
5-year residual value: 38.9 percent or $8,364
Engine: V-6, 3.5-liter, 269 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: AM/FM 6-disc CD changer with satellite radio capability and MP3/WMA capability, 10 cup holders
Reasons it will hold value: By SUV standards, it's fuel-efficient. It seats five and has plenty of storage room.

7. Infiniti G35/G37

MSRP: $32,250
Style: Sedan
5-year residual value: 38.9 percent or $12,545
Engine: V-6, 3.5-liter, 306 horsepower
Warranty: Basic -- 4 years, 60,000 miles, powertrain -- 6 years/70,000 miles
Special features: XM satellite radio, tire pressure monitoring system, heated front seats
Reasons it will hold value: It's a great price for the product. The performance is similar to the BMW 335, but is approximately $8,000 cheaper.

8. Dodge Viper

MSRP: $87,460
Style: Sports car
5-year residual value: 38 percent or $33,235
Engine: V-10, 8.4-liter, 600 horsepower
Warranty: powertrain -- 3 years/36,000 miles
Special features: AM/FM stereo with CD player and CD changer, Sentry Key Theft Deterrent System
Reasons it will hold value: It's a low-volume sports car that has an exotic feel and is reasonably price compared to exotic sports cars.

9. BMW 1 Series

MSRP: $28,600
Style: Small luxury/small-family
5-year residual value: 37.8 percent or $10,811
Engine: Six-cylinder, 3.0-liter, 230 horsepower
Warranty: 4 years/50,000 miles
Special features: Two-way power glass moon roof, anti-theft AM/FM audio system with 10 speakers and satellite radio/MP3 capability
Reasons it will hold value: It has a very low volume and is smaller, lighter and cheaper than the BMW 3 series.

10. Nissan Rogue

MSRP: $19,430
Style: SUV
5-year residual value: 37.5 percent or $7,286
Engine: Four-cylinder, 2.5-liter, 170 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: Drive computer, XM satellite radio, MP3/WMA capability
Reasons it will hold value: It's a fuel-efficient SUV and good for those wishing to downsize a bit.

Worst Value Holders

10. Hyundai Entourage

MSRP: $23,995
Style: Minivan
5-year residual value: 20 percent or $4,799
Engine: V-6, 3.8-liter, 250 horsepower
Warranty: Limited -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Projector-type fog lights, dual front automatic temperature control
Reasons it won't hold value: It's a combination of product deficiencies, poor marketing and historical depreciation of Hyundai vehicles.

9. Chevrolet Malibu Classic

MSRP: $20,550
Style: Sedan
5-year residual value: 20 percent or $4,110
Engine: Four-cylinder, 2.4-liter, 169 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/100,000 miles
Special features: OnStar with standard one-year directions and connections plan, three-month trial of XM satellite radio
Reasons it won't hold value: The body style is in its last generation. It is sold to rental fleets. As such, rental companies sell them after a year, leaving a large supply of them and making resale prices low.

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8. Kia Optima

MSRP: $17,030
Style: Sedan
5-year residual value: 20 percent or $3,406
Engine: Four-cylinder, 2.4-liter, 162 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system, optional trip computer, optional MP3-compatible audio system
Reasons it won't hold value: It's primarily a rental fleet car. The Kia brand typically sees high depreciation rates largely because of past quality issues.

7. Suzuki Forenza

MSRP: $13,999
Style: Sedan
5-year residual value: 19.5 percent or $2,730
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: Eight-speaker AM/FM/CD audio system with MP3/WMA playback, heated outside mirrors
Reasons it won't hold value: It's not really designed for the U.S. market. It's primarily a fleet car. Also, this is the last year this model will be made.

6. Hyundai Accent

MSRP: $10,775
Style: Subcompact
5-year residual value: 19.3 percent or $2,080
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years, 100,000 miles
Special features: AM/FM/XM/CD/MP3 audio system with auxiliary input jack
Reasons it won't hold value: It's a subcompact that's often used for rental fleets. The brand has a history of high depreciation for perceived quality issues.

5. Kia Rio

MSRP: $11,540
Style: Subcompact
5-year residual value: 19.2 percent or $2,216
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Optional AM/FM/CD audio system
Reasons it won't hold value: Similar to the Hyundai Accent's reasons -- it's a subcompact fleet car with past quality issues.

4. Suzuki Reno

MSRP: $13,299
Style: Subcompact
5-year residual value: 19 percent or $2,527
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: AM/FM/CD/cassette stereo with eight speakers, heated rearview mirrors
Reasons it won't hold value: Although it's priced significantly lower than its direct competitors, such as the Honda Fit, the Reno is known to underperform, get poor fuel efficiency for its class, ride badly and fall short in refinement.

3. Kia Spectra

MSRP: $13,545
Style: Compact
5-year residual value: 18.8 percent or $2,546
Engine: Four-cylinder, 2.0-liter, 138 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system with audio input jack for MP3 devices
Reasons it won't hold value: For many of the same reasons other Kias won't -- it's a rental fleet car and it has perceived quality issues.

2. Chevrolet Uplander

MSRP: $22,320
Style: Van
5-year residual value: 18.5 percent or $4,129
Engine: V-6, 3.9-liter, 240 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: OnStar with one-year Safe and Sound Plan, AM/FM/CD stereo with MP3 playback and auxiliary input jack
Reasons it won't hold value: Its gimmick of taking a minivan and trying to make it look like an SUV didn't work. This model will not be produced after this year.

1. Lincoln Town Car
MSRP: $45,295
Style: Sedan
5-year residual value: 18 percent or $8,153
Engine: V-8, 4.6-liter, 239 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 6 years/70,000 miles
Special features: Heated front seats, universal garage door opener.
Reasons it won't hold value: It's a fleet car and it's not fuel efficient (it's only sold as a V-8).
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[nauticac]

6k for a 5 year old xB? and 33k for a 5 year old viper? I call B.S.

[nauticac]

How can you even calculate the residual value for a 5 year old xB when the first model was produced in 04? Unless they use algorithms for their projections.

[dudebrah]

cubanix wrote:
1. Lincoln Town Car
Engine: V-8, 4.6-liter, 239 horsepower.
The only question/concern i have is, how the hell do you make a 4.6 V8 that only puts out 239 hp???
BMW's 4.0 liter V8 in the new M3 gets 1 less mpg city and 2 less on the highway but puts out 414hp!
And that was the first one i even looked at

[xseveredveganx]

dudebrah wrote: cubanix wrote:
1. Lincoln Town Car
Engine: V-8, 4.6-liter, 239 horsepower.
The only question/concern i have is, how the hell do you make a 4.6 V8 that only puts out 239 hp???
BMW's 4.0 liter V8 in the new M3 gets 1 less mpg city and 2 less on the highway but puts out 414hp!
And that was the first one i even looked at
More than likely, the M3 is lighter and it's a 2door. Also, a lot of foreign manufacturers try to make their motors more effecient.

[Sciond]

this had to be based on the high resale of the gen 1 XB..don't think xb 2 will be as good....

[BBN-Boys]

^^ I think with all the standard and safety features of the xB2, resale should be great. Although, I don't think I'll be selling mine soon. I usually keep cars for 15+ years. I hope it lasts that long. It should..... it's a Toyota. :)

[xdorkx]

nauticac wrote: How can you even calculate the residual value for a 5 year old xB when the first model was produced in 04? Unless they use algorithms for their projections.

The 04's actually first came out in 03, just they were so rare and NOT sold in very many places. California, Florida and NY I think....

[Metro273]

Sciond wrote: this had to be based on the high resale of the gen 1 XB..don't think xb 2 will be as good.... Exactly... :clap:

[cubanix]

Metro273 wrote: Sciond wrote: this had to be based on the high resale of the gen 1 XB..don't think xb 2 will be as good.... Exactly... :clap: don't know why your clapping..you really can't predict... if so, please explain..... :blah:

[ScionPhreak]

cubanix wrote: Metro273 wrote: Sciond wrote: this had to be based on the high resale of the gen 1 XB..don't think xb 2 will be as good.... Exactly... :clap: don't know why your clapping..you really can't predict... if so, please explain..... :blah:

Won't "pure pricing" have an affect of the resale value? It is applied to the trade in value of the car as well, Scion somehow has some fair discretion method. If a fellow had an unmodded, virgin XB2 low miles and excellent condition, I suppose he would have a hard time asking more in private reasle, thean what your dealer would offer at the time of trade-in. Like, if he was asking more than scion pure price value, he would have a hard time gettign that, but if he was asking less than pure price value, then that would be a deal.

You pretty much can predict market trends for almost anything, barring one time disasters that affect supply and demand, using good, quantifiable data, discrete mathmatics, and statistical forecasting methods. People who do this as a profession are called an actuary, but most professions apply similar techniques to be able to make optimal decisions.

[cubanix]

ScionPhreak wrote: cubanix wrote: Metro273 wrote: Sciond wrote: this had to be based on the high resale of the gen 1 XB..don't think xb 2 will be as good.... Exactly... :clap: don't know why your clapping..you really can't predict... if so, please explain..... :blah:

Won't "pure pricing" have an affect of the resale value? It is applied to the trade in value of the car as well, Scion somehow has some fair discretion method. If a fellow had an unmodded, virgin XB2 low miles and excellent condition, I suppose he would have a hard time asking more in private reasle, thean what your dealer would offer at the time of trade-in. Like, if he was asking more than scion pure price value, he would have a hard time gettign that, but if he was asking less than pure price value, then that would be a deal.

You pretty much can predict market trends for almost anything, barring one time disasters that affect supply and demand, using good, quantifiable data, discrete mathmatics, and statistical forecasting methods. People who do this as a profession are called an actuary, but most professions apply similar techniques to be able to make optimal decisions. don't forget physic powers

[jahfakin]

ScionPhreak wrote:
You pretty much can predict market trends for almost anything, barring one time disasters that affect supply and demand, using good, quantifiable data, discrete mathmatics, and statistical forecasting methods. People who do this as a profession are called an actuary, but most professions apply similar techniques to be able to make optimal decisions.

with a degree in Physics and Math...I can tell you that it's not an exact science, and I often have very little faith in such predictions.

I still think the 2nd Gen xB is too new of a car (a total redesign of the previous model) to truly judge what the resale value will be in 5 years. In general, it being a Toyota product should have it ranked up there. But the mediocre mileage is going to be it's Achilles heal.

But I still love my xB.....and with the Ford flex expecting to be a popular car. I think the general public is softening up to the new wagon shape.

[jahfakin]

dudebrah wrote: cubanix wrote:
1. Lincoln Town Car
Engine: V-8, 4.6-liter, 239 horsepower.
The only question/concern i have is, how the hell do you make a 4.6 V8 that only puts out 239 hp???
BMW's 4.0 liter V8 in the new M3 gets 1 less mpg city and 2 less on the highway but puts out 414hp!
And that was the first one i even looked at

That's still the old 4.6 Ford Modular engine that came out to replace the 5.0, back in 1991. The engine was extremely over built for use in fleet vehicles such as the crown vics in Taxi cabs and police cruisers. The crown vics used by Taxi companies are known to go over 200-300K miles easy. I think Ford still sells the Crown Vics, but only for fleet use, and not to the public.

depending on how many valves it had, and the type of intake, engine output could be anywhere from 190HP to 405HP (SVT Cobra).