5 SUVs and Trucks That Hold Their Value Best
"Whether a vehicle retains its value well really comes down to basic economics: the balance between supply and demand," says Eric Ibara of Kelley Blue Book, which recently honored some two dozen 2014 cars, trucks and SUVs with the firm's 12th annual Best Resale Value Awards.
KBB believes the winning models will depreciate the least over the next five years of any offering in each vehicle's respective class.
That's good news for people who buy the winning rides, as depreciation is one of the biggest "expenses" car owners face. For example, KBB predicts that the average 2014 will lose 60.3% of its original value to depreciation by 2019.
But the firm recently analyzed millions of used-vehicle sales to identify those models that seem likely to depreciate far less. Judges added their picks for low-depreciation 2014s based on each model's appearance, performance, features and popularity with consumers.
Ibara says vehicle shoppers worried about depreciation might start by steering clear of passenger cars and focusing on SUVs or trucks instead; KBB predicts that the average 2014 SUV or truck's value will decline by 58.3% over five year, whereas the typical 2014 sedan or hatchback will lose 62.2%.
That might not seem like such a big difference, but it translates into nearly $2,000 if you buy a $50,000 SUV or truck this year instead of a $50,000 passenger car.
Ibara says SUVs hang onto their value better because they're harder to come by in the resale market. "There are just more cars out there," he says.
As for trucks, the expert believes pickups tend to retain more of their value partly due to customer loyalty. "Truck buyers tend to be very loyal to their chosen brand," Ibara says.
Click below to check out the 2014 SUVs and trucks KBB predicts will depreciate the least in percentage terms over five years in some of the most popular market segments. (Or click here to see five 2014 passenger cars that the firm expects will retain their value best.)
Dollar figures refer to manufacturer's suggested retail prices for each 2014's base version, while estimated resale values reflect an average estimate for all of a model's various trim lines.
Best crossover/compact SUV: Jeep Wrangler
Estimated value after five years: 58% of what you paid
Ibara says the Jeep Wrangler's one-of-a-kind look should help the $22,395 model hold its value better than rival small SUVs from Honda
"If you're just in the market for a compact utility vehicle, you can look at the Honda CR-V or the Toyota RAV4 or a lot of other strong choices -- but if you want something that looks like a Jeep Wrangler, there really aren't any alternatives," he says.
All Wranglers come standard with plenty of features to handle bad weather and off-road driving. For instance, even base models feature four-wheel drive, a six-speed manual transmission, a detachable soft-cloth top, high- and low-range transfer case gears and a 285-horsepower V-6 engine.