For 2008 the five car brands with the best overall predicted resale values are Volkswagen, BMW, Acura, Honda and Porsche. Not a US label in the bunch.
And what is ranked 5 to 10? It's Subaru, Lexus, Infiniti, Audi and Toyota. Again, not a US label in the list.
And it gets worse if you break it down by model instead of just the brand, because VW alone takes 3 of the top 10 spots, according to Kelley Blue Book predictions.
What's wrong with this picture, folks?
Detroit hurts in this kind of comparison because they go after market share and that ends up meaning building more than the market can absorb and that hurts resale value. Worse yet, the Big 3 throw incentives and rebates out there like it's going out of style, sell millions to the rental car companies to bolster sales figures, and then wonder how come the resale value just isn't there a year or two down the road. Well, no kidding folks.
If you flood the market with thousands and thousands of Taurus vehicles, the value of a Taurus just isn't going to hold up. On the other hand, if you build quality and build a limited supply of your model, then the prices tend to hold up better and longer. Detroit seems to be plagued with the "instant gratification" mindset of the "give it to me now" generation.
Meanwhile, VW has steadily moved up in the resale rankings because they put style and quality and fuel efficiency into a limited supply of models. And those are all factors that drive value up and resale prices hold steady because of it.
So, the moral? If you don't hold onto your car for long, then get one of these cars that hold their value longer so you can get more out of it when you sell it in 2 or 3 years.
Of course, all of that depends on if you get a lemon, which can rip the floor out of any car's resale value. If that happens to you, call us. Getting rid of lemons is what we do. Everyday.
www.BurdgeLaw.com
Helping Consumers Get Rid of Lemons Since 1978
ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.