OBI WAN
03-06-05, 11:50 AM
Residual value is something to consider when shopping for a new car.
Higher residual values mean lower monthly payments if you decide to lease the car and better resale value if you decide to buy it.
However, these are the cars with the lowest residual values for 2005 — that is, they're likely to depreciate the most during the ownership
period. Below, we show the percentage of its original value that each vehicle is likely to retain after five years with an annual mileage of
15,000. Note that the residual value percentages are based on the national True Market Value price, plus typical options and destination
charge.
Although you might think these are cars to avoid, keep in mind that many of them don't cost much to begin with.
A Dodge Neon might not be worth much in dollars after five years on the road, but if it continues to provide dependable transportation,
it has an intangible value to you as an individual.
Moreover, cars with low residual values can be steals when they hit the used car market, as you may be able to pick up a low-mileage
car on this list for much less than you'd pay for competitors that command higher resale prices.
1. Dodge Neon — 26.1%
2. Chevrolet Cavalier — 26.3%
3. Pontiac Sunfire — 27.4%
4. Mercury Sable — 27.5%
5. Ford Taurus — 28.5%
6. Chevrolet Aveo — 28.6%
7. Dodge Stratus — 30.1%
8. Buick Park Avenue — 30.7%
9. Ford Focus — 31.4%
10. Chevrolet Malibu — 31.7%
Higher residual values mean lower monthly payments if you decide to lease the car and better resale value if you decide to buy it.
However, these are the cars with the lowest residual values for 2005 — that is, they're likely to depreciate the most during the ownership
period. Below, we show the percentage of its original value that each vehicle is likely to retain after five years with an annual mileage of
15,000. Note that the residual value percentages are based on the national True Market Value price, plus typical options and destination
charge.
Although you might think these are cars to avoid, keep in mind that many of them don't cost much to begin with.
A Dodge Neon might not be worth much in dollars after five years on the road, but if it continues to provide dependable transportation,
it has an intangible value to you as an individual.
Moreover, cars with low residual values can be steals when they hit the used car market, as you may be able to pick up a low-mileage
car on this list for much less than you'd pay for competitors that command higher resale prices.
1. Dodge Neon — 26.1%
2. Chevrolet Cavalier — 26.3%
3. Pontiac Sunfire — 27.4%
4. Mercury Sable — 27.5%
5. Ford Taurus — 28.5%
6. Chevrolet Aveo — 28.6%
7. Dodge Stratus — 30.1%
8. Buick Park Avenue — 30.7%
9. Ford Focus — 31.4%
10. Chevrolet Malibu — 31.7%