Purchase price is important when you evaluate your vehicle choice, but resale value is equally important if not more important. It is often overlooked so we feel it’s a critical topic. Some vehicles depreciate faster than others and therefore will change the economics of vehicle decisions. Vehicle life-cycle costs look at three factors: acquisition cost, resale value, and cost to operate.
Over the first five years of new-car ownership, depreciation is the largest expense while a new car’s maintenance costs are minimal in the first five years. Did you know the average vehicle is worth only 33% of the original purchase price after five years? Let’s do the math. Say you lease a $30,000 vehicle. At the end of five years, at 33%, the vehicle is worth $9,900. If instead, you lease a $35,000 vehicle that is worth 50% at the end of five years, you get to drive a nicer vehicle and it costs you less! This is the essence and science of fleet management.
*Approximate lease savings for a 60-month lease equals $43 per month
Each year, Kelley Blue Book rates the top brands and vehicles for their resale value over the first five years of ownership.
What Cars Have the Best Resale Value?
The awards are broken into categories: Best Brands, Category Winners, and Overall Top 10 Winners.
The Best Brand awards recognize automotive brands for the best overall combined resale value of their entire portfolio. Toyota took the top spot as the strongest brand when it comes to resale value. Three of the top five overall top five winners went to Toyota and they took the top slots in several of the individual categories as well.
The Category Winners are divided amongst 22 categories such as compact car, mid-sized car, compact SUV/crossover, vans, etc.
The Top 10 recognizes the 10 individual vehicles with the projected highest resale value as a percentage of their original suggested retail price. This year, the Kelley Blue Book Best Resale Value Awards went to seven trucks, two SUVs and one car.
After researching and analyzing the industry, Kelley Blue Book determined that the vehicles below will provide around 50% of the initial cost after the first five years of ownership:
#10 Subaru WRX
Although at the bottom of the list, the resale value of this vehicle will be 45.4% after 36 months and 55.2% after 60 months of ownership.
#9 GMC Canyon
This vehicle retains 59.8% and 47.2% of the initial price after 36 and 60 months, respectively.
#8 GMC Sierra
This truck returns 56.8% after 36 months of ownership and 47.5% after 60.
#7 Honda Ridgeline
With its 3,500 to 5,000 pounds of towing capacity, Honda Ridgeline resale value is close to 64.4% after 36 months, and 47.6% of its sticker price after 60 months.
#6 Chevrolet Colorado
Three years into ownership will return you 48.1% of its value. You will get 61.3% of the initial cost after five years of ownership.
#5 Toyota Tundra
Because the sales for Toyota Tundra have grown in the last years, you can expect to get back 60.7% after three years and 49.0% after five years.
#4 Jeep Wrangler
Due to its reputable off-road performance, Jeep Wrangler has a deposition value of 63.7% of its initial price after 36 months of use and 51.1% after 60 months.
#3 Chevrolet Silverado
The second-best seller in the country has a third-best-resale-value, with 61.8% after 36 months of ownership and 52.2% after 60 months.
#2 Toyota 4Runner
Being among the last of its kind, Toyota 4Runner remains front and center with 64.3% after three years, and 54.5% after five years, respectively.
#1 Toyota Tacoma
After 12 years of being at the top of the list, it’s clear that Toyota Tacoma doesn’t disappoint. This vehicle can bring you an impressive resale value of 71.8% after three years and 58.4% after five years.
To learn more about the winners, click here to go to Kelley Blue book’s award page.