Top 10 new cars for future value
Many consumers learn that the hard way, Toprak says, when they try to trade in a car after two or three years and learn that it's worth less than what they owe, a situation known as negative equity or being "upside-down" in the loan.
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| Top 10 residual value -- Kelley Blue Book |
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| List in alphabetical order. List released 11/29/06 for 2007 cars. |
Source: Kelley Blue Book |
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"You have to pay to get out of your loan," Toprak explains. Edmunds.com research indicates 28 percent of buyers who traded in a vehicle in May 2007 found themselves in a negative equity situation -- averaging a painful $4,000 each.
"Those consumers are a lot more conscious about what they want to buy next," Toprak says.
Nerad says buying based on resale value can also lead to a better ownership experience, since there's good reasons some cars hold their value better than others, like reliability.
"It steers you to cars that are better, more desirable cars," he says.
Some highlights from the Kelley
Blue Book and Edmunds.com Top 10 picks for
2007:
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| Residual value breakdown |
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Two vehicles made both lists, the MINI Cooper and the Volkswagen Eos. |
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Both
list a BMW, Honda and Scion, but
different models. Kelley lists the
BMW 5 series, the Honda Civic and
Scion tC. Edmunds.com lists the
BMW M6, Honda S2000 and 2008 Scion
xB. |
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The
Toyota Prius made Kelley's list
for the second year in a row, the
only hybrid on it, but Nerad sees
the market for used hybrids softening,
as buyers face the significant expense
of replacing the battery pack. "It'll
be interesting, as they age beyond
the five years, what the value does,"
he says. "There's a realization
from some people that there are
other ways to accomplish the same
thing. The way to fuel economy is
not only through hybrids." |
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Edmunds.com
lists the five-year resale value
ranging from 54 percent for its
No. 1 pick, the Lotus Elise, to
47 percent for its No. 10, the Corvette.
Kelley does not rank order but lists
the top 10 alphabetically. |
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Imports
dominate. Kelley named just one
domestic, the Pontiac Solstice.
Edmunds.com chose two, the Jeep
Wrangler and the Chevy Corvette
(which made Kelley's list in 2006). |
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