ALG and Kelley Blue Book both released awards for vehicles they predict will hold the best resale value in the future. The majority of the awards go to foreign automakers.
ALG, a company that forecasts auto values, found Honda tops for residual value for a mainstream brand and Mercedes-Benz as the best premium brand. ALG’s rankings predict which brands and vehicles after three years will hold the highest percentage of their original manufacturer’s suggested retail price.
“Toyota, Audi and Honda captured the most segment honors due to the consistent high value of all their products,” Larry Dominque, president of ALG, said in a statement.
Kelley Blue Book said the Toyota brand has the best expected resale values in its 2014 awards, while the Lexus brand is best for luxury vehicles. Both were tops on the car information company’s list for a third straight year. Toyota’s predicted residual value — the percentage of its original value after five years of ownership — improved by 2.1 percentage points from last year to 46.1 %.
“Consumers sometimes make the mistake of looking for the best price when purchasing a vehicle,” said Eric Ibara, Kelley Blue Book’s director of residual value consulting. “But they don’t realize that getting a low price at purchase may not necessarily be the best deal because that vehicle may not hold its value well.”
Kelley’s top 10 cars based on how much of the original price they retain after five years includes five domestic brands, up from just one last year. The top 2014 cars are Chevrolet Camaro, Chevrolet Corvette, Chevrolet Silverado 1500, Dodge Challenger, Honda CR-V, Jeep Wrangler, Toyota FJ Cruiser, Toyota Tacoma, Toyota Tundra and Toyota 4Runner.
Kelley Blue Book says pickups tend to have the highest average resale value, and plug-in cars have the worst. Various factors affect resale value by region: Four-wheel- or all-wheel-drive vehicles command better resale prices in colder climates. Black or dark-colored cars may not have as high a value in warmer climates.