These vehicles hold on tight to their value
Shoppers choosing to buy a 2021 model from one of Kelley Blue Book’s Best Resale Value Brand winners can be confident that their vehicle will do well in retaining its value over time.
That’s according to Eric Ibara, director of residual values for Kelley Blue Book.
Ibara provided that opinion as Kelley Blue Book on Tuesday announced the 2021 model-year brand, category and top 10 winners of its annual Best Resale Value Awards.
The awards recognize vehicles for their projected retained value through the initial five-year ownership period. For 2021, the best vehicle brand and luxury brand in terms of the highest average projected resale value across their full lineups are Toyota and Porsche, respectively.
“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,” Ibara said in a news release.
Ibara said trucks and SUVs dominated the list again, continuing a longstanding trend among the top 10 vehicles. That domination takes place during a time of high demand and relatively low gas prices.
Toyota won best resale value, brand, for the fifth time. That automaker won the same honors in 2014, 2017, 2018 and 2019. Porsche earned its fifth consecutive win as Best Resale Value: Luxury Brand.
Saying that most new-vehicle shoppers have probably heard the phrase, “a car loses value the moment you drive it off the dealership lot,” Kelley Blue Book said the everyday car buyer might not know how much that amount can vary from model to model.
KBB said many new-car buyers do not realize that depreciation is often the greatest expense incurred by drivers during the first five years of vehicle ownership. After a five-year ownership period, an average 2021 model-year vehicle will only retain about 40% of its original value.
That means a $35,000 new car today will only be worth somewhere close to $14,000 after five years.
In comparison, the company projects that all vehicles in its Top 10 for Best Resale Value will 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.
Kelley Blue Book's Best Resale Value Awards are based on projections from the Kelley Blue Book Official Residual Value Guide. Vehicles earning the highest five-year residual values, expressed as a percentage of their original manufacturer’s suggested retail price, are selected for these awards. Low-volume vehicles are excluded from award consideration, except in the electric, luxury and sports car categories.
“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,” KBB said.
Its full list of this year's awards can be found below.
2021 Best Resale Value Brand: Toyota
2021 Best Resale Value, Luxury Brand: Porsche
2021 Best Resale Value, by Vehicle Category:
Compact car: Subaru Impreza
Midsize car: Toyota Camry
Entry-level luxury car: Lexus IS
Luxury car: Lexus LS
Sports car: Chevrolet Corvette
Hybrid vehicle: Toyota RAV4 Hybrid
Electric vehicle: Tesla Model X
Subcompact SUV: Subaru Crosstrek
Compact SUV: Subaru Forester
Midsize SUV – 2-row: Subaru Outback
Midsize SUV – 3-row: Kia Telluride
Full-size SUV: GMC Yukon
Luxury subcompact SUV: Volvo XC40
Luxury compact SUV: Porsche Macan
Luxury midsize SUV – 2-ROW: Land Rover Range Rover Sport
Luxury midsize SUV – 3-ROW: BMW X7
Luxury full-size SUV: Mercedes-Benz G-Class
Off-road SUV: Jeep Wrangler
Midsize pickup truck: Toyota Tacoma
Fullsize pickup truck: Toyota Tundra
Fullsize pickup truck, heavy-duty: GMC Sierra 2500
Minivan: Toyota Sienna
2021 Best Resale Value: Top 10 Vehicles
— Ford F-Series Pickup
— RAM Pickup
— Ford Ranger
— Toyota 4Runner
— GMC Sierra Pickup
— Toyota Land Cruiser
— Jeep Gladiator
— Toyota Tacoma
— Jeep Wrangler
— Toyota Tundra