These Vehicles Hold Their Value

Monday, March 1, 2004

(NAPSA)—There could be good newsfor car owners trying to drive a smart bargain: Some cars depreciate more slowly than most. The average vehicle retains about 35 percent of its original value after five years but, according to Kelley Blue Book, the top 2005 vehicles will still have closer to 50 percent of their original value in 2010. According to the editors, it’s not so much that the car depreciates the seconditrolls off the dealerlot. It’s that the transaction has changed. You are now selling a used car. The sale goes from being a dealer-to-consumer transaction to either a trade-in or private party sale. In this new transaction, you lose the tax, license, registration and destination charges—all things you pay for when car is new but that you cannot charge when reselling it. All these things combined create instant depreciation. “The depreciation rate of a particular vehicle is dependent upon market conditions, supply and demand,” said Charlie Vogelheim, executive editor of the Kelley Blue Book.“A highly popular or desirable car with limited availability will depreciate slower than a car thatis in excess supply or less desirable.” less desirable to others. The very things that personalize the car for you are what may makeit less appealing to a broad customer base when you wantto sellit later. Vehicles that don’t hold their value well generally have high production rates or are in low demand in the marketplace. These vehicles are often in rental fleets, Car experts also say there are things buyers expect to find in a car today. If these things are not there, it could hurt the value and desirability of that car down the road. The items include: power windows and door locks, a tilt wheel, cruise control, and alloy or premium wheels. They don’t necessarily add value to your car but value may be reducedif they are not there. What else can hurt your car’s ability to garner top dollar down the road? Thecolor. It’s easy to sell a white, black or silver car. Some variations of red and blue are okay. Pick a green, purple, yellow or orange vehicle and you will likely hurt your chances of getting the maximum value when selling or trading the carin later. Personalizing a car with custom paint work, aftermarket products or wild modifications may also make the car have a low perceived value, high maintenance costs and may have a design that does not age well. For more information on new cars or used car values, check out the Web site at www.kbb.com. 2005 Model Year Vehicles Forecasted to Best Hold Their Value SEDAN: Honda Civic LUXURY: BMW 5 Series COUPE: Infiniti G35 PICKUP: Toyota Tacoma PreRunner CONVERTIBLE: Nissan 350Z Touring Roadster SPORT UTILITY: Volvo XC90 WAGON: Volkswagen Jetta Wagon TDI* VAN/MINIVAN: Honda Odyssey HATCHBACK: MINI Cooper * Notavailable in all 50 states. @

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