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AUTOMOBILES

Which Cars Have Best Value After 3 Years?

Mini Cooper Tops List

POSTED: 9:51 am PDT August 4, 2008
UPDATED: 10:00 am PDT August 4, 2008

New cars aren't much of an investment because they will start losing money as soon as they leave the car dealers' lot.

A new list on Forbesautos.com picks a top 10 list that offers cars that will hold their resale value better than most over a three-year period.

The biggest change when it comes to vehicles holding resale value is that gas guzzlers are losing value, while more fuel-efficient cars are gaining.

"Economy cars are improving," John Blair, chief executive officer of Automotive Lease Guides (ALG), a market research firm told Forbes. "The outlook for small, fuel-efficient vehicles is much brighter today versus a year ago. And the outlook on SUVs has changed dramatically in the other direction."

According to data from ALG, none of the cars on the list give up more than 15 percent of their purchase price per year through their first three years.

Blair said that the car's styling contributes a lot to a vehicle's resale value, due to supply and demand: A model that is attractive will generate more demand from people shopping for used cars, and the greater demand pumps up its resale price.

Residual value is like resale value, but it's not the same thing -- it's the price that a model in average condition is expected to take in when eventually it is sold at a wholesale used-car auction. The retail value of a vehicle -- the price a consumer pays to buy it -- varies a little from model to model but generally runs about 15 percent above the ALG residual value, Blair told Forbes

Blair also said that an automaker's reputation for quality also impacts the list In addition to a vehicle's styling, its manufacturer's reputation for quality has a big impact on how much value it retains, Blair told Forbes.

"The No. 1 influence is certainly a vehicle brand and the perception of the brand," he said. "The used-car buyer is looking for a vehicle that's not going to be a maintenance headache for them. If you have a strong brand, that has a real positive influence on the residual value."

Best Resale Value
RANK CAR BASE MSRP 3 YEAR RESIDUAL VALUE
1 Mini Cooper $18,050 62.7 percent
2 Infiniti G37 $34,900 60.6 percent
3 BMW 1 Series $28,600 59.6 percent
4 Jeep Wranger 4-Wheel Drive $18,980 59 percent
5 Volkswagen R32 $32,990 58.8 percent
6 Honda CR-V AWD $20,700 57.9 percent
7 Scion xB $15,650 57.8 percent
8 Honda Civic Hybrid $22,600 56.8 percent
9 Nissan Rogue AWD $19,430 56.4 percent
10 Audi S5 $50,500 55.8 percent
10 Volkswagen New Beetle Convertible $23,125 55.8 percent
Source: Forbesauto.com, Automotive Leasing Guide
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