In need of a new commuter, looking at Cruze/Mazda3/Focus/Etc, the normal ones and just curious if there are any estimates on which vehicles will hold the value the best?
Budget is as little as possible. Sub 17k if possible.
Let's not let actual facts from the company that determines residual values for third-party lease rates stand in the way of a half-page of blind conjecture.
Also, before the usual Bozo the Clowns jump in, notice the Honda Fit is ranked as Best Subcompact, and VW Golf TDI is best alt-fuel vehicle (a category that includes the Prius).
Let's not let actual facts from the company that determines residual values for third-party lease rates stand in the way of a half-page of blind conjecture.
Um...none? Hyundai Assurance only works if you buy another Hyundai, and doesn't affect lease rates through a bank.
Seriously, the folks I know at Mannheim have said Hyundais crossing the auction block have been doing very well, on par with Toyotas, Subarus, VWs and Hondas. It's even helped the previous generation of cars--a 2008 Sonata that was trading for about $11,000 in 2010 will still trade for $11,000 today, since the better reputation has lifted the values.
In Canada the top small cars for residuals are: Mazda 3, Golf TDI (probably Jetta TDI too), Subaru Impreza, Honda Civic, Toyota Corolla.
Everything else is a joke. Fords and Chevy's are a dime a dozen, same with any Hyundai/Kia. Dodge has always been cheap resale too, but who knows what the Dart might do. The one big sticking point with going with these brands is resale... great cars, but worth very little in three years. If you don't like the car you're pretty much stuck. Meanwhile, I'm bored with my Golf after 2.5 years, and I can get a good enough trade in value to break even on a balloon-payout 4-year loan... I paid essentially what a lease payment would have been, except I doubled the maximum mileage. Not financial lounge approved, but whatever.
That's a great deal...I'd be all over that. FWIW the non-Skyactiv 2.0L 3 will still get an easy mid-30s MPG on the highway, so you're still going to have good fuel economy - just not 40 MPG.
Why are you buying new if you plan to sell in a few years?
You are the one taking the biggest hit on the price.
Buy a car that is a year or two old.:beer:
If he is really interested in the Mazda...the 3 has pretty good resale value, so they are not always a good used buy, if you can snag a great price on a new one. Example:
Used '10 3 sedan, at the same dealer, nearly same spec as the brand-new one posted above except this one has a CD changer and cruise control. 39K miles. It's only $1,000 cheaper than a brand-new one. At that price differential, why not get the new one, with full B2B warranty? :beer:
It was the same situation I found when I bought my 3 a couple years ago. I paid ~$17K for mine brand new...meanwhile, identical used ones with 30K miles were sitting on the other side of the lot for...$16,500.
Why are you buying new if you plan to sell in a few years?
You are the one taking the biggest hit on the price.
Buy a car that is a year or two old.:beer:
I know op says he needs compact car, but if resale is #1 priority seriously base model Toyota Tacoma reg cab, automatic in white. Will still be worth what you paid for it in four years.
But on topic, I vote for Honda Fit. Honda dealers can't get enough of them, used ones are selling for more than new etc....
third choice would be 2013 Impreza base, AWD, good mpg and good resale.
There's also the fact that 4 to 6 years can be a surprisingly long time in the automotive world in terms of determining the residual value you actually end up getting - cars and entire automotive segments can come in and out of favor, drastically affecting the resale value.
For example, we only bought our new Forte because, surprise!, our old Sedona was worth more than we owed on it (I had it appraised on a whim); I thought for sure I'd be upside-down on the minivan for at least another year or two.
So while picking a specific vehicle may give you better odds of getting a good residual value, it's not a guarantee. And just because a car is expected to have poor residual does not mean that, with the right deal upfront, you can't come out ahead when the time comes to trade it in.
I would think the Cruze Eco model hold value really well. It wouldn't surprise me if gas hits 5/gallon and diesel even more. Those 40mpg cars are going to increase in value like the TDi.
I bought my Honda Fit Sport 4 years ago for $15.5k and blue book is $14k now. That's amazing. I am considering selling it but will sell it for a bit less than that to give someone a good deal. But that it very little depreciation.
just buy a used one so someone else takes the major hit then you can probably get a nicer car and loose less than buying new. Unless you want the skyactiv mazda....then your probably SOL because i doubt youll find any used ones much cheaper than new.
Everybody predicted that Prius c will be a huge seller. And with gas prices crossing $5 in Cali, I'd say Prius will have the best resale value. Although for some strange reason, I have seen only one Prius c and one Prius v, and I have a 50 mile commute to New York 5 days a week. Where are these cars?
The low-end trims start around $19k -- but the only ones on the lots around here seem to be the loaded $23-25k models. They are decent cars but essentially just a hybrid Yaris with some additional gadgets like nav and auto climate control. It doesn't seem worth an extra $9-10k over a Yaris to me.
I suspect most people see the price on the Prius Cs on the lot and just decide to spend an extra grand on a regular Prius, which has lots more cargo room, much nicer interior materials and is significantly more refined.
My Yaris is averaging 38 MPG in mixed driving. If a new Prius C averages 60 MPG I would save about $400/year on gas compared to my Yaris. At a $9k premium for the hybrid I would never see a payback (breakeven point is about 22 years).
Yaris: 12,000 / 38 MPG = 315 gallons per year = $1130/year @ $3.59
Prius: 12,000 / 60 MPG = 200 gallons per year = $718/year @ $3.59
Fit or Corolla. Makes no sense to buy one 2 - 3 years old; the higher interest rate on a used car totally negates any savings. Corollas hold their value like crazy, I mean REALLY crazy. And it will sell instantly when you are ready to as well.
I'm surprised how the current Fit holds it's value so strongly when the first generation (only available here for 2 years) really didn't; but it far outshines anything else in its class.
Not sure why people are LOL'ing at resale value. That's one of the largest factors in determining your overall cost of ownership.
Use can be a good deal for the right price.
I picked up a low mileage auto reg cab 2wd work truck spec 02 Tundra in late 03 for $12k.
I got $13k in trade in early 2005 off of a below invoice before all discount and rebates price (my rx8).
But I did fix it up a bit- cheap used Tundra alloys with oem 4x4 tires, used and modified to fit hard bed cover, tow hitch, touched up the paint.... (but I had maybe $500 in all upgrades).
So used can be a good deal if you find the right vehicle for the right price.
I heard recently that new cars are kept on average for ten years now- which seems hard to believe, and also negates much of the short term resale value concerns.
More than likely we have some that buy new and keep until junk, and some that buy new and trade every 2 to 4 years. The average is 10 of all that, but I don't think there are that many that actually go 10.
Why do people have such a hard time believing there are cars beyond the Honda/Toyota stalwarts that have solid resale at this time?
In any case, when I worked for CarMax many moons ago they looked at the auctions and the black book as well as their own internal needs to come up with an offer.
What would be interesting is if someone on TCL with access to the auction sites would be kind enough to post up some current (say, 2009+ resale values) on Civic/Corolla/Elantra etc.
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