New-car frills: Is the bang worth the buck? -- Page 2

Bigger engines

Who isn't enticed by the thought of more oomph under the hood? But will it be worth the added cost at trade-in time? It depends.

On the BMW 3 Series, for example, buyers who choose the 330i, with its larger six-cylinder engine, over the 2.5-liter six in the 325i, will see a significant portion of their money back at trade-in. There's about a $7,000 difference between the two models when new, and models four years old still show a $5,100 difference.

On the flip side is the Lexus GS series. The GS 300, which has a 3-liter six, lists for $9,000 less than the V8-equipped GS 430. Trade-in history shows that after four years the difference between the two models has shrunk to just $2,000 -- making a used V8 GS 430 a great used-car bargain for a buyer but a disaster for the seller.

The difference in this case stems from BMW's better promotion of its more expensive model as the "ultimate driving machine."

Value becomes even harder to discern between models that offer several different V6 engines with different horsepower ratings. A good rule of thumb: If the base engine provides adequate power, then opting for the more-expensive, more-powerful model will not pay off in the long run. But make sure the car you're buying isn't underpowered, which can make it almost impossible to sell later on.

Four-wheel drive

Mercedes-Benz says four-wheel-drive -- or full-time all-wheel-drive -- is the next big safety innovation, but until it becomes more widely available, it's an expensive option that should only be considered if you really need it.

On pickups and SUVs it's a little different. The Ford F150, the country's most popular pickup, offers four-wheel-drive at a sticker price of just over $3,000. At trade-in, a four-wheel-drive pickup is worth about $1,500 more than a two-wheel-drive version.

Of course if you live in a particularly snowy climate, four-wheel-drive can return 100 percent of its value. But for those buyers in the South and Southwest, it's a pricey option that may be more about status -- the look of a high-riding truck -- than value.

Convertibles

There once was a time when almost every car was offered as a hardtop and a convertible, and the premium buyers paid for a retractable roof was as little as $200. Now, convertibles are niche vehicles and cost $4,000 or more over the same vehicle as a hardtop.

So what's the long-term value? This is a difficult calculation, since it's rare for someone who wants a convertible to settle for a hardtop based solely on price.

Examining the Mustang, the most popular U.S. convertible, the price difference between a new coupe and convertible is about $4,400. Four years after purchase, a convertible Mustang is worth about $2,300 more than a comparable coupe. But after about six or seven years, the convertible's value starts to rise. On an eight-year-old Mustang, a convertible is worth nearly twice what a coupe can bring.

So the lesson here is: Convertibles are a good long-haul investment, but in the short run will cost the buyer as much as $2,000 in depreciation.

Must-have options

This is a bit of reverse value-added thinking. There are some items that are on the order sheet as options, but to get a car without them severely diminishes what you'll receive at trade-in time.

Air-conditioning: Standard on all but the least-expensive new cars. No buyer should consider any car without air conditioning, no matter where you live. Buyers expect it, and dealers will hammer you if you trade a car without it.

Power windows, door locks and steering: At one time, used car ads would have lines that said a car had "full power.'' Now it's assumed that a vehicle comes with these amenities. Only on the most basic work truck can you get by without power windows.

Compact-disc players: They used to be only for high-end vehicles. Now they are replacing the cassette player as the standard for in-car audio. The best of both worlds when it comes to value is a stereo that has both a cassette and a CD player. But never buy a car that just has an AM-FM-cassette system.

Terry Jackson is an automotive expert, journalist and author. He is the former editor-in-chief of AMI Auto World Magazine and has written for dozens of publications, including Automobile, Road & Track and AutoWeek. He has penned six automotive books and evaluates more than 100 new cars each year.