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Japanese Makers Retain Resale Value Lead

But domestics gain ground.

by on Nov.26, 2012

The Jeep Wrangler was the only domestic model to land among the top 10 nameplates when it comes to resale value.

Japanese automakers continue to retain a lead when it comes to vehicle resale values, according to a pair of new studies.

Of domestic products, only the Jeep Wrangler made it into the top 10, according to Kelly Blue Book’s 2013 Resale Value Awards, while a second study of resale values by TrueCar.com found no domestic brands made the top list. Nonetheless, Detroit makers – Ford in particular, have begun to close the once yawning gap.

“They’re no longer so far behind,” said Kelly Blue Book’s Eric Ibara.

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The KBB analysis focused on how much of their original value vehicles maintained after 60 months of ownership – a point at which products are likely to lose more than half, and often two-thirds or more of their original sticker price.  Residual values – which translate into trade-in prices — can be impacted by a variety of factors, including such things as options and even paint color. Engine packages often have a significant impact.

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New Car Prices Hit All-Time Record

Torrid pace not likely to slow much anytime soon.

by on Apr.10, 2012

Strong demand for the Elantra has helped drive up the price of the typical Hyundai product this year.

Remember “sticker shock”?  After several years of heavily discounting their products in a desperate bid to keep assembly lines rolling, automakers are finding themselves back in the driver’s seat once again – pushing prices to record levels.

And it’s “not a blip,” warns one senior analyst, who expects the trend to continue for several years. The good news for shoppers is that trade-ins are also yielding better prices – and while that new car, truck or crossover may command more money than ever before it’s also likely to include significantly more features and markedly better fuel economy than the vehicle it replaces.

The average new vehicle sold in the U.S. in March cost $30,748, according to data tracking service TrueCar.com.  That was up from $28,771 a year earlier and marks an all-time record.

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“It’s not a blip. It’s a trend we’ve been seeing for months,” said Jesse Toprak, TrueCar’s chief automotive analyst.  That’s despite the fact, he says, that “This might seem counter-intuitive at a time you might expect to see people buying cheaper cars because fuel costs are rising so fast.”

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Subaru, Lexus Tops at Retaining Residual Value

Japanese lead the pack though Audi also comes on strong.

by on Nov.16, 2011

The 2012 Subaru Legacy tops the list among midsize models when it comes to anticipated residual value.

Japanese brands, though facing increased competition, continue to be best at holding onto their residual – or trade-in – values, according to a new study, with Subaru topping the list among mainstream manufacturers while Lexus led the line among luxury brands.

Japanese makers topped 10 of the 19 individual vehicle segments in the 13th Annual Residual Value Awards presented by ALG, long known as the Automotive Leasing Guide.  But Audi, which took the lead in three categories, had more individual segment wins than any other manufacturer.

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The study is significant in that it suggests which automotive marques will do the best job of maintaining value when it’s time to trade in or to return a leased vehicle.

“Residual value is a great indicator of brand strength which in turn contributes to greater sales and profitability,” said Raj Sundaram for ALG. “We have seen a strong focus this year on producing high-quality products with great pricing and packaging delivering real value for vehicle buyers.”

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