Tuesday March 9 2010
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Best 2010 cars for resale value
Kelley Blue Book has published its annual Best Resale Value Awards for model year 2010 vehicles.
When we buy a car, we think of the price as the true cost, along with the expense of insurance, gas and maintenance. But the real cost of a car is depreciation — how much in value it loses during the initial years of ownership.
Here are the brands that are projected to hold their value the best during the next five years:
• Lexus
• Toyota (Remember, this list was compiled before the recall.)
• Honda
• BMW
• Subaru
• Jeep
• Acura
• Infiniti
• Audi
• Nissan
Kelley Blue Book goes on to say that half of all 2010 model year vehicles are expected to maintain less than 20 percent of their initial value after five years. So consider that before buying a fancy new car. Buy a not-so-fancy used car instead and let somebody else handle the depreciation!
If you must buy new, plan on holding a car for 10 years or longer to absorb all the depreciation. As an alternative, buy a two-year-old car and hold it for three years or a three-year-old car and hold it for two years.