Best 10, Worst 10 Cars for Holding Value

@sisco100 (2338)
United States
August 30, 2008 4:58pm CST
If you spend tens of thousands of dollars on a car, you want to get something back for your investment when it's over. Inevitably, the value of your car will depreciate, but you'd like it to have as much trade-in value as possible. This doesn't just go for buying a car. When you lease a car, the amount it will be worth at the end of the lease is critical in determining your monthly lease payment price. It's called residual value, an important factor to keep in mind if you're shopping for a new car. In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). Best Value Holders: 1. Volkswagen R32 MSRP: $32,990 Style: Performance 5-year residual value: 43 percent or $14,186 Engine: six-cylinder, 3.2-liter, 250 horsepower Warranty: Basic -- 4 years/50,000 miles, powertrain -- 5 years, 60,000 miles Special features: SIRIUS satellite radio, power glass sunroof, multi-function trip computer Reasons it will hold value: It's a reasonably priced, low-volume car. It's a descendant/variant of the Volkswagen GTI, also known for its quality. 2. Jeep Wrangler MSRP: $19,680 Style: SUV 5-year residual value: 42.9 percent or $8,443 Engine: Six-cylinder, 3.8-liter, 202 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- lifetime limited warranty, certain restrictions apply Special features: AM/FM radio with in-dash CD player & MP3 capability, Sentry Key Theft Deterrent System Reasons it will hold value: It's cornered the niche market for people who like to do a lot of off-roading and has few competitors. 3. Mini-Cooper MSRP: $18,700 Style: Hatchback 5-year residual value: 42.7 percent or $7,985 Engine: Four-cylinder, 1.6-liter, 118 horsepower Warranty: 4 years/50,000 miles Special features: Four years of complimentary roadside assistance, toggle switch controls, fully electronic throttle Reasons it will hold value: It's sporty, fuel-efficient, reasonably priced and covers a wide spectrum of customers. It also has a good reputation. 4. Scion XB MSRP: Manual $16,370, automatic $17,320 Style: Compact station wagon 5-year residual value: 39.5 percent or $6,466(manual)/ $6,841 (automatic) Engine: Four-cylinder, 2.4-liter, 158 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years, 60,000 miles Special features: Tachometer and trip meter, 60/40-split folding rear seat, AM/FM CD and iPod capability Reasons it will hold value: It's relatively fuel-efficient, reasonably priced and it has more space than compacts with similar prices. 5. Honda CR-V MSRP: $20,700 Style: SUV 5-year residual value: 39.4 percent or $8,156 Engine: Four-cylinder, 2.4-liter, 166 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles Special features: XM satellite radio, Honda satellite-linked navigation system, digital audio card reader Reasons it will hold value: It's fuel-efficient for an SUV, seats five and has plenty of storage room. 6. Toyota RAV4 MSRP: $21,500 Style: SUV 5-year residual value: 38.9 percent or $8,364 Engine: V-6, 3.5-liter, 269 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles Special features: AM/FM 6-disc CD changer with satellite radio capability and MP3/WMA capability, 10 cup holders Reasons it will hold value: By SUV standards, it's fuel-efficient. It seats five and has plenty of storage room. 7. Infiniti G35/G37 MSRP: $32,250 Style: Sedan 5-year residual value: 38.9 percent or $12,545 Engine: V-6, 3.5-liter, 306 horsepower Warranty: Basic -- 4 years, 60,000 miles, powertrain -- 6 years/70,000 miles Special features: XM satellite radio, tire pressure monitoring system, heated front seats Reasons it will hold value: It's a great price for the product. The performance is similar to the BMW 335, but is approximately $8,000 cheaper. 8. Dodge Viper MSRP: $87,460 Style: Sports car 5-year residual value: 38 percent or $33,235 Engine: V-10, 8.4-liter, 600 horsepower Warranty: powertrain -- 3 years/36,000 miles Special features: AM/FM stereo with CD player and CD changer, Sentry Key Theft Deterrent System Reasons it will hold value: It's a low-volume sports car that has an exotic feel and is reasonably price compared to exotic sports cars. 9. BMW 1 Series MSRP: $28,600 Style: Small luxury/small-family 5-year residual value: 37.8 percent or $10,811 Engine: Six-cylinder, 3.0-liter, 230 horsepower Warranty: 4 years/50,000 miles Special features: Two-way power glass moon roof, anti-theft AM/FM audio system with 10 speakers and satellite radio/MP3 capability Reasons it will hold value: It has a very low volume and is smaller, lighter and cheaper than the BMW 3 series. 10. Nissan Rogue MSRP: $19,430 Style: SUV 5-year residual value: 37.5 percent or $7,286 Engine: Four-cylinder, 2.5-liter, 170 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles Special features: Drive computer, XM satellite radio, MP3/WMA capability Reasons it will hold value: It's a fuel-efficient SUV and good for those wishing to downsize a bit. Worst Value Holders 10. Hyundai Entourage MSRP: $23,995 Style: Minivan 5-year residual value: 20 percent or $4,799 Engine: V-6, 3.8-liter, 250 horsepower Warranty: Limited -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles Special features: Projector-type fog lights, dual front automatic temperature control Reasons it won't hold value: It's a combination of product deficiencies, poor marketing and historical depreciation of Hyundai vehicles. 9. Chevrolet Malibu Classic MSRP: $20,550 Style: Sedan 5-year residual value: 20 percent or $4,110 Engine: Four-cylinder, 2.4-liter, 169 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/100,000 miles Special features: OnStar with standard one-year directions and connections plan, three-month trial of XM satellite radio Reasons it won't hold value: The body style is in its last generation. It is sold to rental fleets. As such, rental companies sell them after a year, leaving a large supply of them and making resale prices low. 8. Kia Optima MSRP: $17,030 Style: Sedan 5-year residual value: 20 percent or $3,406 Engine: Four-cylinder, 2.4-liter, 162 horsepower Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles Special features: AM/FM/CD audio system, optional trip computer, optional MP3-compatible audio system Reasons it won't hold value: It's primarily a rental fleet car. The Kia brand typically sees high depreciation rates largely because of past quality issues. 7. Suzuki Forenza MSRP: $13,999 Style: Sedan 5-year residual value: 19.5 percent or $2,730 Engine: Four-cylinder, 2.0-liter, 127 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles Special features: Eight-speaker AM/FM/CD audio system with MP3/WMA playback, heated outside mirrors Reasons it won't hold value: It's not really designed for the U.S. market. It's primarily a fleet car. Also, this is the last year this model will be made. 6. Hyundai Accent MSRP: $10,775 Style: Subcompact 5-year residual value: 19.3 percent or $2,080 Engine: Four-cylinder, 1.6-liter, 110 horsepower Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years, 100,000 miles Special features: AM/FM/XM/CD/MP3 audio system with auxiliary input jack Reasons it won't hold value: It's a subcompact that's often used for rental fleets. The brand has a history of high depreciation for perceived quality issues. 5. Kia Rio MSRP: $11,540 Style: Subcompact 5-year residual value: 19.2 percent or $2,216 Engine: Four-cylinder, 1.6-liter, 110 horsepower Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles Special features: Optional AM/FM/CD audio system Reasons it won't hold value: Similar to the Hyundai Accent's reasons -- it's a subcompact fleet car with past quality issues. 4. Suzuki Reno MSRP: $13,299 Style: Subcompact 5-year residual value: 19 percent or $2,527 Engine: Four-cylinder, 2.0-liter, 127 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles Special features: AM/FM/CD/cassette stereo with eight speakers, heated rearview mirrors Reasons it won't hold value: Although it's priced significantly lower than its direct competitors, such as the Honda Fit, the Reno is known to underperform, get poor fuel efficiency for its class, ride badly and fall short in refinement. 3. Kia Spectra MSRP: $13,545 Style: Compact 5-year residual value: 18.8 percent or $2,546 Engine: Four-cylinder, 2.0-liter, 138 horsepower Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles Special features: AM/FM/CD audio system with audio input jack for MP3 devices Reasons it won't hold value: For many of the same reasons other Kias won't -- it's a rental fleet car and it has perceived quality issues. 2. Chevrolet Uplander MSRP: $22,320 Style: Van 5-year residual value: 18.5 percent or $4,129 Engine: V-6, 3.9-liter, 240 horsepower Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles Special features: OnStar with one-year Safe and Sound Plan, AM/FM/CD stereo with MP3 playback and auxiliary input jack Reasons it won't hold value: Its gimmick of taking a minivan and trying to make it look like an SUV didn't work. This model will not be produced after this year. 1. Lincoln Town Car MSRP: $45,295 Style: Sedan 5-year residual value: 18 percent or $8,153 Engine: V-8, 4.6-liter, 239 horsepower Warranty: Basic -- 4 years/50,000 miles, powertrain -- 6 years/70,000 miles Special features: Heated front seats, universal garage door opener. Reasons it won't hold value: It's a fleet car and it's not fuel efficient (it's only sold as a V-8). so
3 responses
• United States
19 Mar 09
How about the Cadillac Escalade, i heard that if you buy it new it loses a ton of its value the second you drive it off the lot.
@sisco100 (2338)
• United States
28 Mar 09
ya thats almost ture about any care that you get. i dont know why other then the car has been used and its not brand new any more. i know that there are some cars that hold their value but there arent many of them out there. i know that toyotas hold a good compaired to other car makers.
• United States
24 Nov 08
I LOVE Mini Coopers..huge market for tuning, lightweight, and go kart like handling. One day one of those will sit in my garage.. For some reason when you first look at the car, you can tell it's unique. Some how I knew it would be on that list..
@sisco100 (2338)
• United States
28 Mar 09
its a great small lightweight car, but for some one like me i dont think that i would beable to is comfrotable in that car. i would need a lot of leg room and head room. i think that i'll stay with my sports cars.
@sunkissed (4330)
• United States
31 Aug 08
Thank you for posing this valuable information
@sisco100 (2338)
• United States
31 Aug 08
not a problem. i think that its something that every one should know about. i helps when buying your next car. last thing anyone wants is to buy a car and have it be worthless when they decide to trade it in or sell it.