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Posts Tagged ‘car values’

Buying the Right New Car Could Net Big Profits Later

Own a '71 Plymouth 'Cuda convertible? You may be a millionaire.

by on Mar.21, 2017

This 1971 Plymouth Barracuda convertible appreciated more than 55,000% — yes, the comma is in the right spot. Photo credit: Barrett-Jackson.com

There’s nothing that beats that “new car” smell — except if you accurately predict that your new car will smell like money in 40 years.

In the vast majority of cases, new vehicles are money losers, or a depreciating asset if you want a fancier term, for the buyer. However, there are a few vehicles that beat the odds and increase in value over time.

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Case in point: the 1971 Plymouth Barracuda convertible. The ‘Cuda featured a drop top and a 426 Hemi all for $4,296 when it debuted more than 45 years ago. Now it’s valued at $2.5 million, a 58,000% increase in value over time, according to Black Book, which provides up-to-date pricing information for classic cars. (more…)

Land Rover, Toyota Take Top Honors for Residual Value

ALG releases list of top 26 vehicles that lose the least.

by on Nov.17, 2014

Land Rover with its Range Rover Sport took the top spot in ALG's Residual Value Awards for Premium brands this year.

With new vehicles sales continuing to steam roll through the year, finding reasons to purchase one type over another can be a difficult task. For some, which brand will lose the least money may sway the final choice. If that’s the final piece to the purchase puzzle, then it would appear Toyota and Land Rover are the brands to buy.

ALG announced the two were the winners of its 15th annual Residual Value Awards (RVA), for Premium Brand and Mainstream Brand, respectively.

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In addition to the brands, the company also honors vehicles in 26 segments that are forecast to retain the highest percentage of their Manufacturer’s Suggested Retail Price after a three-year period. (more…)

Dodge Challenger R/T Tops List of Cars Holding Their Value

Looking for cars, trucks and crossovers with maximum trade-in power?

by on Jun.27, 2011

The 2011 Dodge Challenger R/T is the current model with the lowest anticipated 1st-year depreciation.

Sure, if you’ve got the money in your bank account, invest in that rare Bugatti Royale.  And an original, mint-condition Ferrari Testarossa isn’t a bad way to watch your money grow, either.  But for the average automotive buyer, the economic realities are significantly less positive: the moment you drive off the dealer lot you’re likely to start losing a significant chunk of your investment.

According to a AAA study, you’ll lose nearly $4,000 a year on depreciation with the average vehicle, much of that weighted to the first year after purchase.  A separate study by Consumer Reports projects depreciation will account for 46% of the money you’ll spend over the first five years.  But the folks at NADAguides stress that not all models lose their value equally.  Some, in fact, barely depreciate at all during the first year.

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Perhaps surprising to some, the current model most likely to hold its value is the 2011 Dodge Challenger.  Mopar’s big muscle car is expected to lose just 8% of its value after 12 months of ownership, according to the NADAguides Car Buyers Market Report, which is comprised by the National Automobile Dealers Association.

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