Are you one of those people who likes to pay cash for a used car? Well, if you're looking three years down the road, Automotive Leasing Guide is out with its annual report on the top brands for residual value. In effect, ALG is predicting what new cars will be worth 36 months after purchase.
The top brand is Subaru (in no doubt helped by an outstanding 2009 sales year when most other manufacturers tanked). ALG reports that Subarus, on average will be worth 52.9% of their value after three years. ALG says that number is "significantly higher" than the industry average of 44.3%.
Honda, the perennial front runner, was pushed back into second place with a residual value of 52.3%. It's no wonder when you see how the marquee does overall. ALG reports Honda was ranked first place in three segments: Entry Compact Car (Fit), Midsize Car (Accord), and Minivan (Odyssey).
Coming in third place was a newcomer, Mazda, at 51.9%. The Japanese manufacturer displaced Volkswagen and jumped from 6th place in 2009 to 3rd place. Mazda took home the gold in the Mid-Compact segment with its Mazda 3 product.
Unfortunately, ALG doesn't point out who the losers are in terms of residual value. Just remember, three years from now you know you're going to pay premium prices for Subarus, Hondas and Mazdas.
Have you checked the price of 3 year old Subaru’s recently? They’re advertised right somewhere around 70% of original MSRP if the mileage and condition are at all decent. I would love to get one for less than 60% of MSRP.
I think the ALG values are guidelines much like the EPA fuel figures. They’re best used for comparative purposes. Also, these numbers are used to determine lease values so companies can determine what monthly values should be. It’s ultimately the market that sets used car prices.
Keith,
Your Guide to Used Cars
its really good track on the Used car business, used cars are very huge potential in this current economic. its may be leading more that the New car market, for which online survey has been done by new york times.
Cheap Cars
Perfect for anyone who is looking to see exactly when and where their money is going into their vehicles.