These new cars are predicted to be the best investments
Kelley Blue Book has announced the winners of its “Best Resale Value Awards’’ for 2016.
KBB’s awards recognize vehicles that are projected to retain the highest percentage of their value during the first five years of ownership.
Subaru was named the top mainstream brand for resale value, with four winning models. Meanwhile, Lexus took KBB’s prize for best luxury brand with six winning models.
It was also a good year for Toyota and General Motors, each had five vehicles among those with the best predicted resale values.
KBB’s overall top 10 cars for resale for 2016 includes the Chevrolet Camaro, Chevrolet Colorado, GMC Canyon, GMC Sierra, Jeep Wrangler, Subaru Forester, Subaru WRX, Toyota 4Runner, Toyota Tacoma, and Toyota Tundra.
KBB also listed the best vehicles for resale by individual category. While some category winners were also in KBB’s overall top 10 list, not all top 10 vehicles won their category, due mostly to tough competition among trucks and SUVs.
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Best resale values by category:
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KBB’s editors describe vehicle depreciation as “the greatest expense incurred by drivers in the first five years of vehicle ownership’’ and predicts the average 2016 model year vehicle will only retain about 35 percent of its original value over five years. This means that a vehicle priced at $50,000 will only be valued at roughly $17,400 after five years.
Supply and demand plays a significant role in the retention of vehicle value. KBB says vehicles that retain their value the best are “typically discounted the least and tend to generate high levels of consumer interest.’’
But regional factors, including cold and warm weather patterns, can also have a “significant impact’’ on a vehicle’s resale value.
“In colder sections of the country, a two-wheel drive vehicle’s resale value often will not be as high as a four-wheel or all-wheel drive version of the same model,’’ said Jack Nerad, executive editorial director and executive market analyst for KBB, in a statement.
“In warmer climates black (or dark-colored) cars will not have as high resale value as they could command in other regions.’’
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