Saturday, September 19, 2009

2010 Rides with High Residual Values

2010 Subaru Legacy MSRP*: $17,995- $29,995
Category: 3-yr/5-yr Residual
Legacy Average Residual: 54%/36% of MSRP
Subaru Average Residual : 49%/34% of MSRP
Midsize Car Average Residual: 39%/25% of MSRP

2010 Ford Taurus SHO MSRP*: $37,170
Category: 3-yr/5-yr Residual
Taurus SHO Average Residual: 44%/29% of MSRP
Ford Average Residual: 37%/24% of MSRP
Full Size Car Average Residual: 36%/24% of MSRP

2010 Kia Forte MSRP*: $13,695-$18.195
Category: 3-yr/5-yr Residual
Forte Average Residual: 50%/27% of MSRP
Kia Average Residual: 33%/20% of MSRP
Mid-Compact Car Average Residual: 43%/29% of MSRP

2010 Buick LaCrosse MSRP*: $27,085-$33,015
Category: 3-yr/5-yr Residual
LaCrosse Average Residual: 46%/31% of MSRP
Buick Average Residual: 36%/24% of MSRP
Fullsize Car Average Residual: 36%/24% of MSRP


Here are four all-new re-designed vehicles which are expected to have a higher resale value than other competing vehicles in its category over a 3-year period. Residual value is based on the percentage of the MSRP a new-vehicle will retain after a period of time, which could be 2 years, 3 years, 4 years or 5 years. Typically, after 5 years, the value of your vehicle greatly diminishes. Resale value is important for two reasons: if you plan on trading in your vehicle within a specified period of time and if you plan on leasing a vehicle. In the case of leasing, higher residual values leads to lower car payments than traditional financing. This is why many automakers depend on leasing as a significant percentage of their monthly new-vehicle sales and why Chrysler and GM recently recommitted to leasing.

On the other hand, if you plan on holding on to your vehicle until the wheels fall off, resale value should be the least of your concern. In fact, quality and long-term reliability should be at the top of your list. Ironically, while the Buick LaCrosse, Ford Taurus SHO and Subaru Legacy have a higher resale value than its brand and its segment over a 3-year and 5-year period, the Kia Forte, which replaces the Spectra, actually is expected to roll in 2 points lower than the mid-compact car average segment at the end of five years. Yet, the Forte still manages to pull in a residual value 7 points higher than the Kia brand as a whole. Conversely, the Kia Forte has a longer powertrain warranty than the competing vehicles in its segment like the Ford Focus, Honda Civic, Nissan Sentra and Toyota Corolla.

With the exception of the Taurus SHO, which we have reviewed, look for upcoming car reviews of the aforementioned new rides soon. To check out the features and options of each of the vehicles, visit the Car-Buying Toolbox on this site, accessing our New-Vehicle Pricing Guide.

*The base MSRP excludes the destination charge, advertising fees and options.

Sources: American Leasing Guide and JeffCars.com

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