Cars and Trucks With the Best Resale Values for 2018
Image caption:The Subaru Impreza has the best resale value for a compact car for 2018, according to Kelley Blue Book.
As new-vehicle shoppers continue to eschew traditional passenger cars for big pickup trucks and SUVs of all sizes, resale value of sedans and coupes are plummeting. That’s according to annual Best Residual Values Awards compiled by Kelley Blue Book in Irvine, Californa, which identify vehicles that are expected to be worth the most money after an average five years on the road.
Among the 10 models KBB projects will return the highest percentage of their original value, nine of them are pickups and truck-based SUVs, with the lone auto among the top 10 performers being the rally-ready Subaru WRX hatchback.
Depreciation is typically the biggest long-term ownership expense, and it easily tops insurance, fuel and maintenance costs. Resale value projections are based on a rich stew of economic factors, historical data and plain old supply and demand issues.
The average vehicle from the 2018 model year is anticipated to retain just 35.1 percent of its original value after five years, which means a $30,000 ride today will be worth just $10,500 in 2022. By comparison, KBB’s top model in this regard, the midsize Toyota Tacoma pickup truck, is predicted to bring back a whopping 69.6 percent of its original MSRP after five years. Also among the models estimated to bring the greatest five-year return for 2018 include the Toyota Tacoma (61.1), Toyota Tundra (54.2), GMC Sierra (51.9), Chevrolet Silverado (50.4), and Ford F-Series (54.2) pickup trucks, and the Toyota 4Runner (54.2) and Jeep Wrangler (54.1) SUVs.
"The Top 10 vehicle winners are predominantly trucks, which reflects the high demand that exists for these models,” says Eric Ibara, director of residual values for Kelley Blue Book. “Despite the higher incentives available on trucks today, used-car buyers are willing to pay more for trucks, relative to the initial MSRP, than they are for sedans. Without the prospect of higher gas prices, this trend doesn't appear to be slowing."
The mainstream automotive brand KBB determined brings the highest average resale/residual values across the board is Toyota, while Porsche gets top honors among luxury nameplates. We’re featuring the resale value leaders by category in the accompanying box.
Be aware that a car’s resale value is perhaps of even greater importance to those who lease a new car or truck. That’s because monthly payments are largely based on the difference between a vehicle’s transaction price and its predicted worth at the end of the term, financed at a set interest rate. Automakers sometimes employ cash bonuses, or will artificially boost residual values or interest rates to help sweeten lease deals in some cases, but residual value is the biggest factor in determining lease payments.
And keep in mind that the costlier the vehicle, the more important its residual value becomes, simply because there’s more money at stake to lose.
Best Resale Values by Category, 2018
• Subcompact Car: Honda Fit
• Compact Car: Subaru Impreza
• Sporty Compact Car: Subaru WRX
• Mid-Size Car: Honda Accord
• Full-Size Car: Toyota Avalon
• Entry-Level Luxury Car: Lexus RC
• Luxury Car: Lexus GS
• High-End Luxury Car: Porsche Panamera
• Sports Car: Porsche 718 Cayman
• High Performance Car: Porsche 911
• Hybrid/Alternative Energy Car: Toyota Avalon Hybrid
• Electric Vehicle: Chevrolet Bolt EV
• Subcompact SUV/Crossover: Honda HR-V
• Compact SUV/Crossover: Jeep Wrangler
• Mid-Size SUV/Crossover: Jeep Wrangler Unlimited
• Full-Size SUV/Crossover: Chevrolet Tahoe
• Luxury Compact SUV/Crossover: Porsche Macan
• Luxury Mid-Size SUV/Crossover: Lexus RX
• Luxury Full-Size SUV/Crossover: Lexus LX
• Mid-Size Pickup Truck: Toyota Tacoma
• Full-Size Pickup Truck: Chevrolet Silverado HD
• Minivan: Honda Odyssey
Source: Kelley Blue Book
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