Kelly Blue Book Releases Brands With Best Resale Value
DENVER (CBS4) – Nobody likes losing money on a new car, but some lose less than others.
Now Kelly Blue Book is out with the brands and models it expects to have the best resale value after 5 years.
According to Kelly Blue Book, the average used car is only worth about 35 percent of its original cost after 5 years.
As an overall brand, Toyotas are back on top, fetching more than 41 percent of their original value. But the Jeep Wrangler is the individual vehicle with the highest resale. They’re worth 55 percent of their original value after 5 years.
Go Chrysler-Jeep’s General Manager Matt Smith is proud of what’s under the hood of the 2012 Wrangler, including a new transmission and new power plant.
“Much better fuel efficiency and a much better shifting and smoother ride,” Smith said.
What’s amazing is how little depreciation is predicted after 5 years.
“It’s greater than 50 percent on the resale value,” Smith said.
To understand Wrangler’s resale success, look at its heritage dating back to 1941. That’s when Willy’s was building Jeep battlewagons for World War II.
“It’s a fairly bullet and bomb proof vehicle.”
That’s still true today. The look and rugged feel haven’t changed much, according to Smith.
“It’s an American icon. It’s one that just makes you smile. Its’ one that other manufacturers have tried to duplicate but just can’t seem to find the way.”
The overall brand with the best resale is Toyota.
“Well I think it’s vindication,” Stevenson Toyota General Manager Brian Landauer said. “When you’re No. 1 any disruption of that turns into very large news.”
Toyota is back on top again after overcoming complaints about sticky accelerators, costly recalls, and parts shortages from a devastating tsunami.
Kelly Blue Book says Toyota’s depreciation is 6 percentage points less than average cars. Landauer says Toyota’s resale success is a testament to the company and its loyal customers.
“I think this is every bit important for them as it is for us,” he said.
For luxury brands, Lexus is the one with best resale. It retains almost 38 percent of its original value after 5 years, according to Kelly Blue Book.
For a full report, visit the Kelley Blue Book website.