Kelley Blue Book is now posting the resale values for every new vehicle. Now you can find out what your new car will be worth five years from now.
Kelley Blue Book (www.kbb.com), the leading provider of new and used-vehicle information, now provides projected resale values for all new vehicles on its Web site. Available on all new-vehicle pricing reports, Kelley Blue Book shows a rating that demonstrates how much value a brand new vehicle will retain over the first three years of ownership.
By clicking on the ‘Learn More’ link, shoppers can see a complete depreciation graph of any new vehicle, how it compares to other vehicles in its segment, and how well it will maintain its value compared to the industry average after three, four and five years of ownership. The illustrated graphs and easy to read comparison charts will assist buyers to quickly assess which vehicles will best hold their value down the road compared to other vehicles.
What a new vehicle will be worth when it comes time to sell it years later was ranked as the No. 1 piece of new vehicle information shoppers would like to see aside from new vehicle MSRP and invoice pricing. In a study conducted by Kelley Blue Book Marketing Research among new vehicle shoppers on kbb.com, 92 percent of respondents said they were interested in knowing what a new vehicle would be worth after three-to-five years of ownership.
Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership but the most overlooked cost among consumers shopping for a new vehicle. The average new vehicle will only retain about 35 percent of its original value after a five-year ownership period, meaning that a $20,000 new car today will only be worth somewhere close to $7,000 after five years.
What You Can Do
Though a vehicle’s resale value is determined by such things as, market conditions, brand perception, expectations of the future economy, and supply and demand, there are steps a consumer can take to get the best return on their car in the future. Certain features available on new cars today will be desirable by a majority of used-car buyers three or five years down the road, and these features will help the vehicle maintain more of its original value.
In-market shoppers should consider the following options in their next new vehicle to help better retain its value. First, choose a popular exterior color, such as black, white or silver. Then select equipment that many buyers want. Included on this list are: antilock brakes (ABS), alloy wheels, CD player/CD changer, parking sensors, navigation system, sensing cruise control and leather-covered seats. At the same time, avoid less popular colors and go easy on customization.
Best Resale Value Awards
Since 2003 Kelley Blue Book has named the top new vehicles to retain their value after a five-year ownership period in its Best Resale Value Awards. Kelley Blue Book and kbb.com determined that for the 2007 model year, Honda and Acura brand vehicles have the best resale value of any brand on the market today. In the fall of 2007, Kelley Blue Book will announce the 2008 model year vehicles expected to have the best resale value in 2013.
Based on projections by Kelley Blue Book’s expert staff of market analysts encapsulated in the Kelley Blue Book Residual Value Guide, the prestigious Best Resale Value Awards honor vehicles expected to maintain the greatest proportion of their retail prices after five years of ownership. Low-volume vehicles and vehicles with a Manufacturer’s Suggested Retail Price of more than $60,000 are excluded from awards consideration.
Values reflect projected future wholesale pricing for clean, reconditioned vehicles at the end of a five-year lease period. Kelley Blue Book’s residual values are used by banks, financial institutions, governmental agencies and the automotive leasing industry.
For more information about Kelley Blue Book’s Best Resale Value Awards, please visit www.kbb.com/resaleaward.