Cars That Keep Their Value Best After 5 Years of Driving
BOSTON ( MainStreet) Kelley Blue Book estimates that the average 2014 vehicle will lose some 60% of its value to depreciation over the next five years, but here's a look at some models the firm expects will drop the least.
"Consumers need to be aware that purchase price isn't the only stat they need to look at when buying a car," says Eric Ibara of KBB, which recently named 2014's Best Resale Values . "It really doesn't do any good to get a great deal on a vehicle today only to realize that your car will be worth very little five years from now."
KBB estimates that the average mass-produced 2014 vehicle will fetch only 39.7% of its original price by 2019. Ibara says vehicles that depreciate the least generally "look great, perform well and/or are built with tremendous quality."
To figure out which 2014s best fit that bill, KBB analyzed hundreds of cars, trucks and sport utility vehicles to determine winners in 22 different market segments.
Ibara says staffers started by studying millions of used-car sales from recent years to determine how various models have performed in the resale market.
Analysts factored in their personal projections of various models' futures based on test drives and subjective reviews of vehicles' looks, amenities and popularity with consumers.
Click below to check out KBB's predictions for the top performers in five of the most-popular automotive segments.
All percentage figures refer to how much of a model's original purchase price the firm predicts a given vehicle will sell for five years from now regardless of trim level. All dollar figures refer to manufacturers' suggested retail prices for each vehicle's base 2014 version.
Best subcompact car: Nissan Versa
Estimated value after five years: 45.9% of what you paid (vs. a 39.7% industry average)
The $11,990 Versa from Nissan is the least-expensive 2014 on the U.S. market, but KBB expects the subcompact to retain more value after five years than any of its competitors.
Ibara says he doesn't know exactly why, given that most subcompacts "are relatively close in appeal, price and performance.
"It really just comes down to what [recent years' used-car sales figures] show," he says.
The Versa comes standard with few frills and a small, 109-horsepower engine. But a base Versa with manual transmission gets a decent 27 miles per gallon in city fuel efficiency and 36 mpg/highway, while an available continuously variable automatic transmission will boost that to 31 mpg/city and 40 mpg/highway.
Best compact car: Subaru Impreza
Estimated value after five years: 47.8% of what you paid
The Impreza edges out the Civic from Honda to take top honors in this category, with the Subaru enjoying a 47.8% projected retained value after five years vs. 47.4% for the Civic.