Kelley Blue Book Names 2021 Best Resale Value Award Winners
An average 2021 model-year vehicle will only retain about 40% of its original value after a five-year ownership period
IRVINE, Calif., March 2, 2021 /PRNewswire/ -- Most new-vehicle shoppers have probably heard the phrase, "a car loses value the moment you drive it off the dealership lot." Yet the everyday car buyer may not be aware to what extent and how much this amount can vary from model to model. Understanding a car's resale value - what a vehicle will be worth down the line when going to sell or trade it in - can make the difference of hundreds, if not thousands, of dollars in the long run. To help new-car buyers shop smart, Kelley Blue Book today announces the 2021 model-year brand, category and top 10 winners of the annual Best Resale Value Awards, recognizing vehicles for their projected retained value through the initial five-year ownership period.
"Shoppers who choose to buy a 2021 model from one of our Best Resale Value Brand winners can be very confident that their vehicle will retain its value well over time," said Eric Ibara, director of residual values for Kelley Blue Book. "For 2021, Toyota and Porsche, respectively, are the best vehicle brand and luxury brand in terms of the highest average projected resale value across their full lineups. Continuing a longstanding trend among the top 10 vehicles, trucks and SUVs dominate once again amidst high demand and relatively low gas prices. And interestingly, with the unprecedented events of the last year, we are seeing a slight increase in the overall average residual value for new vehicles, explained by the significantly reduced car supply as well as the market continuing to shift to SUVs, which tend to have higher resale values."
This year marks the fifth Best Resale Value: Brand win for Toyota, which previously won the same honors in 2014, 2017, 2018 and 2019. For 2021, Porsche celebrates its fifth consecutive win as Best Resale Value: Luxury Brand.
COMPACT CAR: Subaru Impreza
FULL-SIZE SUV: GMC Yukon
MIDSIZE CAR: Toyota Camry
LUXURY SUBCOMPACT SUV: Volvo XC40
ENTRY-LEVEL LUXURY CAR: Lexus IS
LUXURY COMPACT SUV: Porsche Macan
LUXURY CAR: Lexus LS
LUXURY MIDSIZE SUV – 2-ROW: Land Rover Range Rover Sport
SPORTS CAR: Chevrolet Corvette
LUXURY MIDSIZE SUV – 3-ROW: BMW X7
HYBRID VEHICLE: Toyota RAV4 Hybrid
LUXURY FULL-SIZE SUV: Mercedes-Benz G-Class
ELECTRIC VEHICLE: Tesla Model X
OFF-ROAD SUV: Jeep Wrangler
SUBCOMPACT SUV: Subaru Crosstrek
MIDSIZE PICKUP TRUCK: Toyota Tacoma
COMPACT SUV: Subaru Forester
FULL-SIZE PICKUP TRUCK: Toyota Tundra
MIDSIZE SUV – 2-ROW: Subaru Outback
FULL-SIZE PICKUP TRUCK – HEAVY-DUTY: GMC Sierra 2500
MIDSIZE SUV – 3-ROW: Kia Telluride
MINIVAN: Toyota Sienna
Ford F-Series Pickup
GMC Sierra Pickup
Toyota Land Cruiser
(Residual values used for award calculations are based on the 2021 model-year vehicles that appear in the January-February 2021 Publication of the Kelley Blue Bookâ Residual Value Guide. Top 10 models appear in alphabetical order.)
Many new-car buyers do not realize that depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership. An average 2021 model-year vehicle will only retain about 40% of its original value after a five-year ownership period, meaning that a $35,000 new car today will only be worth somewhere close to $14,000 after five years. In comparison, all vehicles in Kelley Blue Book's Top 10 for Best Resale Value are projected to retain around 50% or more of their MSRP. This year's top model, the 2021 Toyota Tundra, is expected to be worth 59% of its MSRP after five years.
Resale value for new vehicles can vary greatly. Vehicles end up with average or below-average resale values because they were produced in greater volumes than the marketplace could support. Vehicles that are projected to retain their value best hold that position because they've managed to generate consumer demand that, for a variety of reasons, is greater than the volume that was produced. A sure sign that a vehicle will likely have strong residual values is that they are typically discounted the least when new and tend to generate high levels of consumer interest.
Now in its 19th year, Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide. Kelley Blue Book® Residual Values are established by experienced automotive analysts that review the output from statistical models built upon millions of transactions. Vehicles that earn the highest five-year residual values, expressed as a percentage of their original Manufacturer's Suggested Retail Price (MSRP), are selected for these prestigious awards. Low-volume vehicles are excluded from award consideration, except in the electric, luxury and sports car categories.
Residual values reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a five-year lease or ownership period. Kelley Blue Book's residual values are used by manufacturers, banks, financial institutions and the automotive leasing industry. For more information about Kelley Blue Book's Best Resale Value Awards, visit https://www.kbb.com/best-cars/best-resale-value-cars-trucks-suvs/.
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About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.
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SOURCE Kelley Blue Book
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