The Subaru Legacy captured Kelley Blue Book's award for best midsize car resale value.
In the frenzy that has been automotive sales this year, buyers have been accounting for many factors in those purchases, including low gas prices. However, one they really need to pay attention to: resale value.
If that plays a significant role, then Subaru and Lexus need to be the vehicles of choice, according to Kelley Blue Book’s annual Best Resale Value Awards.
Surbaru earned the title for Best Brand with four of its models winning individual classes while Lexus captured the Best Luxury Brand honor after six of its vehicles took top honors.
“Lexus notably captured the top luxury brand award for the fifth year in a row, and after previously winning the brand award in 2011 and 2015, Subaru is back on top once again for 2016 as the best mainstream brand for resale value across its entire lineup,” said Eric Ibara, director of residual values for Kelley Blue Book.
Subaru took top honors with its Impreza (compact car), WRX (sporty compact car), Legacy (midsize car) and Forester (Top 10 in Best Resale Value).
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Lexus models winning honors included Lexus RC (entry-level luxury car), Lexus GS (luxury car), Lexus ES 300h (hybrid/alternative energy car), Lexus GX 460 (luxury midsize SUV/crossover), Lexus LX 570 (luxury full-size SUV/crossover) and Lexus RX 450h (hybrid SUV/crossover).
Toyota and General Motors also fared will in the awards, each maker with five models winning 2016 Best Resale Value Awards. Porsche has two models taking home resale value honors this year, and Tesla is receiving its first-ever Best Resale Value Award.
“While both Subaru and Lexus deliver incredible resale value, we also continue to be impressed with General Motors, which tops domestic automakers with seven combined awards for Chevrolet and GMC and places four of its vehicles in our Top 10,” Ibara said.
“In addition, the majority of the Top 10 Best Resale Value vehicles this year are trucks and SUVs, which is further testament to the strength these segments will carry in the future. Five out of the Top 10 vehicles with Best Resale Value for 2016 are pickup trucks.”
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While there are plenty of things that draw buyers to a new vehicle, one largely under appreciate factor is depreciation, which is often is the greatest expense incurred by drivers during the first five years of vehicle ownership.
According to KBB.com, an average 2016 model-year vehicle only will retain about 34.8% of its original value after a five-year ownership period. So if you buy a $50,000 new car today, it will only be worth a little more than $17,000 five years from now.
Vehicles with average or below-average resale values are generally 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 are typically discounted the least and tend to generate high levels of consumer interest.
“Most options and packages added to a vehicle do not necessarily increase its resale value,” said Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book. “However, there are exceptions to the rule, such as a high-performance engine or a performance package in a sports car.
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“Regional preferences can significantly impact the value of a vehicle as well. In the colder sections of the country, a two-wheel drive vehicle’s resale value often will not be as high as a four-wheel or all-wheel drive version of that same model. In warmer climates black (or dark-colored) cars will not have as high resale value as they could command in other regions.”