In the back of the mind of every person who buys a car new is that the value is going to plummet after a few years. There are a number of cars that keep their value reasonably well and Edmunds has just released a list of new cars that should hold their value well.
Unfortunately, there is very little hedging against depreciation when buying a car, except possibly for buying an Aston Martin or Ferrari that will be worth many times the purchase price decades later. However, according to USA Today, there are some cars that hold their resale value fairly well. The annual list of new cars Edmunds believes will depreciate least has just been released. Unsurprisingly, Japanese car makers were well represented; four vehicles each from Honda and Toyota, including their sub-brands, and two Subarus were on the list.
The brands with the most models were BMW and Ford, both with five cars on Edmunds’ list of cars that hold resale value well. However, only two BMW models were BMW; three were Mini.
Edmunds’ survey forecasts how much of the original MSRP a car will retain after five years, based on how well previous models did. Only four were forecast to hold 50 percent or better. The Honda Civic and MiniCooper both held 50 percent of MSRP. The Honda CR-V and Toyota Tacoma topped the list, with the CR-V projected to hold 54.6 percent of its value and the Toyota Tacoma projected to retain 57.3 percent of its value.
The lowest projected value retention for cars on Edmunds’ list were for the Cadillac CTS, at 42 percent, and the BMW 3 series wagon, at 42.7 percent.
Seems about right
The Honda CR-V and Toyota Tacoma are consistently rated highly for holding resale value, so it is no surprise Edmunds put them at the top of its list.
Kelly Blue Book releases a similar survey, projecting resale value in five years. The Honda CR-V also was close to the top of KBB’s survey in 2011, according to CNN, with the CR-V projected to hold 46.8 percent of its value. The Toyota Tacoma was also projected to hold its value very well, as KBB projected the 2011 Tacoma to hold 44.5 percent of its resale value after five years.
The CR-V placed seventh overall in KBB’s 2012 resale value survey, as the 2012 edition is projected to keep 43.5 percent of its value after five years. The Tacoma placed third, with a projected 49 percent of value retained after five years. The number one pick, curiously enough, was the 2012 Jeep Wrangler, which Kelly Blue Book projects will keep 55 percent of its value after five years.