Toyota and Lexus Are Tops in Kelley Blue Book Resale Value Survey

 

For the second consecutive year, Toyota and Lexus are the nonluxury and luxury brands, respectively, with the best resale values, according to the annual Kelley Blue Book Best Resale Value Awards. The distinction is based on how well 2013 models are projected to retain their original list price after five years of ownership, because depreciation is often the greatest expense owners will incur during this period.

Toyota and Lexus also held the top spots for the 2010 model year.

According to the used-car pricing service, the average vehicle, no matter the brand, is expected to retain about 38.2 percent of its original value after five years, which means that a $50,000 new car today would be worth about $19,100 after five years.

The average Toyota, however, is expected to retain 44 percent of its original list price, while a Lexus is expected to retain 43.7 percent, Eric Ibara, director of residual consulting for Kelley Blue Book, said in a telephone interview.

Residual values in the survey reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a five-year lease or ownership period. Low-volume vehicles or those with a list price of more than $60,000 are excluded from consideration for the awards, except in the luxury and high-performance categories.

Last year the average vehicle was expected to retain 35.7 percent of its original value after five years, compared with this year’s 38.2 percent.

“What we are seeing is basically better vehicles,” Mr. Ibara said. “Over the past year we have seen vehicles holding their value better.”

In addition, some redesigned vehicles were described as significantly better than the previous models, so their residual values are higher.

The Toyota FJ Cruiser was the vehicle with the highest resale value, at 63 percent. Second was the Toyota Tacoma, at 57 percent.

 

 

Combined, 12 Toyota and Lexus models received Best Resale Value Awards this year, and half of the Top 10 models were from either Toyota or Lexus.

Source: New York Times