Residual Outlook: Which Car Brands Hold Their Values

Source: ALG

You should pay close attention to this list if you have plans on leasing a new-vehicle soon and/or if you have plans on trading-in (or selling) your vehicle. The residual value determines how much your vehicle will be worth over a 2-year, 3-year or 5-year period. Auto companies use this information to set lease payments. Typically, vehicles with higher residuals usually have lower lease payments, while vehicles with lower residuals have higher payment (unless their subsidized by the automaker.) So to interpret the chart let's look at Mini brand, which tops the list. The Mini brand maintains 52.5 percent of its sticker price over a three-year period. On the contrary, both Chevy and Suzuki only retains 42.2 percent of its sticker price over a three-year period.

Also higher residual values determine what your vehicle will be worth in about three years, according to the chart. So,if you have no plans on trading-in your ride and you plan on driving your ride until the wheels fall off, this list should have no bearing on your next car purchase.

Furthermore, insurance companies also use this information to determine how much your vehicle is worth in case the vehicle is stolen or declared a total loss.