Kelley Blue Book (www.kbb.com), the leading provider of new- and used-vehicle information, now provides projected resale values for all new vehicles on its Web site. Available on all new-vehicle pricing reports, Kelley Blue Book shows a rating that demonstrates how much value a brand new vehicle will retain over the first three years of ownership. By clicking on the 'Learn More' link, shoppers can see a complete depreciation graph of any new vehicle, how it compares to other vehicles in its segment, and how well it will maintain its value compared to the industry average after three, four and five years of ownership. The illustrated graphs and easy to read comparison charts will assist buyers to quickly assess which vehicles will best hold their value down the road compared to other vehicles.
What a new vehicle will be worth when it comes time to sell it years later was ranked as the No. 1 piece of new vehicle information shoppers would like to see aside from new vehicle MSRP and invoice pricing. In a study conducted by Kelley Blue Book Marketing Research among new vehicle shoppers on kbb.com, 92 percent of respondents said they were interested in knowing what a new vehicle would be worth after three-to-five years of ownership.
"Surveyed consumers said that we are uniquely qualified to provide this important purchase decision information," said Stephen Henson, executive vice president, consumer business and marketing, Kelley Blue Book. "We are the top destination among new vehicle shoppers for pricing and for used vehicle values and distinctively positioned to provide resale values and depreciation information."
Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership but the most overlooked cost among consumers shopping for a new vehicle. The average new vehicle will only retain about 35 percent of its original value after a five-year ownership period, meaning that a $20,000 new car today will only be worth somewhere close to $7,000 after five years.
"Often consumers are irritated when they learn what their car is worth after three or five years of ownership, because some vehicles hold their value better than others," said Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book's kbb.com. "With this new feature, kbb.com now offers new-vehicle shoppers the ability to determine which vehicles not only fit their lifestyle, but also how well they will maintain their value when it comes to trade-in time."
What You Can Do
Though a vehicle's resale value is determined by such things as, market conditions, brand perception, expectations of the future economy, and supply and demand, there are steps a consumer can take to get the best return on their car in the future. Certain features available on new cars today will be desirable by a majority of used-car buyers three or five years down the road, and these features will help the vehicle maintain more of its original value. In-market shoppers should consider the following options in their next new vehicle to help better retain its value. First, choose a popular exterior color, such as black, white or silver. Then select equipment that many buyers want. Included on this list are: antilock brakes (ABS), alloy wheels, CD player/CD changer, parking sensors, navigation system, sensing cruise control and leather-covered seats. At the same time, avoid less popular colors and go easy on customization.
Best Resale Value Awards
Since 2003 Kelley Blue Book has named the top new vehicles to retain their value after a five-year ownership period in its Best Resale Value Awards. Kelley Blue Book and kbb.com determined that for the 2007 model year, Honda and Acura brand vehicles have the best resale value of any brand on the market today. In the fall of 2007, Kelley Blue Book will announce the 2008 model year vehicles expected to have the best resale value in 2013.
Based on projections by Kelley Blue Book's expert staff of market analysts encapsulated in the Kelley Blue Book Residual Value Guide, the prestigious Best Resale Value Awards honor vehicles expected to maintain the greatest proportion of their retail prices after five years of ownership. Low-volume vehicles and vehicles with a Manufacturer's Suggested Retail Price of more than $60,000 are excluded from awards consideration.
Values reflect projected future wholesale pricing for clean, reconditioned vehicles at the end of a five-year lease period. Kelley Blue Book's residual values are used by banks, financial institutions, governmental agencies and the automotive leasing industry.
For more information about Kelley Blue Book's Best Resale Value Awards, please visit www.kbb.com/resaleaward.
About Kelley Blue Book (kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. Kbb.com is rated the No. 1 automotive information site by Nielsen//NetRatings and the most visited auto site by J.D. Power and Associates eight years in a row. No other medium reaches more in-market vehicle shoppers than kbb.com; nearly one in every three American car buyers performs their research on kbb.com.
SOURCE: Kelley Blue Book
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