IRVINE, Calif., Jan. 21, 2020 /PRNewswire/ -- Many new-car buyers have heard the common expression, "penny-wise and pound-foolish." As it relates to new-car shopping, you can save money buying a less expensive new car, but later find out it depreciates faster than a similar, more expensive car that holds its value better. The money you save on a new-car purchase can be more than made up for by the greater depreciation five years later. Understanding what a vehicle will be worth when going to sell or trade it in can make the difference of hundreds, if not thousands, of dollars in the long run. To help new-car buyers shop smart, Kelley Blue Book today announces the 2020 model-year brand, category and top 10 winners of the annual Best Resale Value Awards, recognizing vehicles for their projected retained value through the initial five-year ownership period.
"Kelley Blue Book's analysts are impressed at the residual values of our Best Resale Value: Brand winners, Subaru and Porsche, and new-car shoppers would be wise to consider a vehicle from one of those two brands to get the most bang for their buck in the long term," said Eric Ibara, director of residual values for Kelley Blue Book. "Once again, this year's Top 10 models are dominated by trucks, except for the all-new and much-hyped 2020 Chevrolet Corvette appearing on this year's list. Without the imminent prospect of significantly higher gas prices, the used-car demand for trucks continues to be an ongoing, multi-year trend, directly impacting new cars."
This year marks the fourth Best Resale Value: Brand win for Subaru, which previously won the same honors in 2011, 2015 and 2016. For 2020, Porsche celebrates its fourth consecutive win as Best Resale Value: Luxury Brand.
(Residual values used for award calculations are based on the 2020 model-year vehicles that appear in the January/February 2020 Kelley Blue Bookâ Residual Value Guide. Top 10 models appear in alphabetical order.)
Many new-car buyers do not realize that depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership. An average 2020 model-year vehicle will only retain about 37% of its original value after a five-year ownership period, meaning that a $35,000 new car today will only be worth somewhere close to $12,950 after five years. In comparison, all vehicles in Kelley Blue Book's Top 10 for Best Resale Value are projected to retain more than 50% of their MSRP. This year's top model, the 2020 Toyota Tacoma, is expected to be worth 61% of its MSRP after five years.
Resale value for new vehicles can vary greatly. Vehicles with average or below-average resale values generally are plentiful in the marketplace and easy to find, but certain vehicles are projected to hold their value better than others. While much of a vehicle's resale value is based on supply and demand, as well as current and projected future market conditions, vehicles that retain their value best typically are discounted the least and tend to generate high levels of consumer interest.
Now in its 18th year, Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide. Kelley Blue Book® Residual Values are established by experienced automotive analysts that review the output from statistical models built upon millions of transactions. Vehicles that earn the highest five-year residual values, expressed as a percentage of their original Manufacturer's Suggested Retail Price (MSRP), are selected for these prestigious awards. Low-volume vehicles are excluded from award consideration, except in the electric, luxury and sports car categories.
To discuss this topic, or any other automotive-related information, with a Kelley Blue Book analyst on-camera via the company's on-site studio, please contact a member of the Public Relations team to schedule an interview.
About Kelley Blue Book (www.kbb.com) Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.
About Cox Automotive Cox Automotive Inc. makes buying, selling, owning and using cars easier for everyone. The global company's 34,000-plus team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®,are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with revenues exceeding $20 billion. coxautoinc.com