The Next Car - car buying and car selling tips

Friday, December 23, 2005

Car-depreciation list

"The industry average [used] car value after 5 years is 35% of the new value." The range mentioned is from a low of 22% (worst) to a high of 53% (best). Great reason to shop carefully and know what your'e buying BEFORE you go to the dealer.
USATODAY.com - Rio, Sebring top car-depreciation list

Rio, Sebring top car-depreciation list
By Chris Woodyard, USA TODAY
LOS ANGELES — The Kia Optima is less than optimal on resale value, two used car valuation outfits agree.

So are the Chrysler Sebring, Jaguar X-type, Kia Rio and minivans.

All are on lists of 2006-model vehicles expected to show the biggest drops in value the next five years. The lists were compiled separately by Kelley Blue Book and Automotive Lease Guide (ALG). The competing services, experts in predicting depreciation, make the forecasts so that automakers can better tailor lease rates and so car companies and dealers can predict trade-in values.

Kelley says a Rio is worth just 22% of its window-sticker price after five years; ALG says it's worst of any model, at a mere 15%.

The industry average after five years is 35% of new value, Kelley says. Best: 53% of original value after five years, shared by Mini Cooper, Toyota Prius and Honda Accord hybrid, according to Kelley.


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