Top 10 Cars With the Worst Residual Value for 2005

[91 s-10baja]

Top 10 Cars With the Worst Residual Value for 2005

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%

http://www.baileycar.com/residuals.html

[RWD60]

it's about time the American cars got some credit.... er.... nevermind...

[AdmiralViscen]

Wow, I'm surprised at Park Avenue and Malibu. At least the Impala isn't on the list.

[TomCLR]

A lot on that list are some of the most often seen on the road. Their value is low, because there are so many of them.

[GM_Fanatic]

I wonder how much the previous gen Malibu affected it being on the list?

[ByTheLake]

More good news. Good grief.

I can hear the Chevy salesman now ... telling the potential customer that the Aveo has "intangible value to you as an individual." What a line o' crap. No wonder why people buy Hondas ... they're at least worth a little bit after a few years.

To heck with it all ... I love my GM products.

[atomicshark]

Originally Posted by TomCLR

A lot on that list are some of the most often seen on the road. Their value is low, because there are so many of them.

That is not true. The Camry and Accord are literally 2 of the most seen models on the road and they have very high values.

For example: a 3 year old Impala might fetch $9,000 where a similar Accord would get $14,000.

[atomicshark]

Another example:
I saw a 2001 Regal with 40,000 miles being sold by a Buick dealer for $6,800.

I just sold my 2000 Accord coupe on Ebay for $7,400 and it had 117,000 miles on it!

Unfortunately, I don't see this changing for at least one more car generation (about 5 years or so).

[Cassie]

one positive however is that these cars become amazing deals on the used car lot

[atomicshark]

Originally Posted by Cassie

one positive however is that these cars become amazing deals on the used car lot

Exactly! Imagine buying a decent car that was $27,000 when new for like $9,000 with only 30-40,000 miles on it? A great deal no matter what.

[tgagneguam]

Originally Posted by Cassie

one positive however is that these cars become amazing deals on the used car lot

Precisely! You think like a PAW. While the news is not good for new GM car buyers, per se, your typical PAW (prodigious accumulator of wealth) will find the deals particularly appealing, particularly when it's for the number one quality car in its class like the Malibu or the nearly equally as high quality Park Avenue.

It all depends on your perspective. And it's why some people delight in this news.

[ByTheLake]

Low residual values have a much deeper impact to GM than having the cheapest used vehicle prices. It makes the new vehicle lease prices higher, which makes it more difficult to compete for sales with Toyota & Honda.

GM works with its dealers aggressively to promote its Certified Used program (Certified Pre-Owned for Cadillac) in an effort to increase used vehicle prices, improving residuals.

GM must make its vehicles more desirable.

[goblue]

There's a common thread out there that a corrolla, for instance will simply last longer, and that is what drives up the price. People really think its better to buy a car with 120K miles and a H on the hood then a 40K mile domestic. Resale is a reflection of how many miles people think a vehicle has left in it. Some get burned and learn the error of their thinking. Some get lucky and spread the news to others. Considering how much higher the repair costs are on an import, its quite a gamble.

A friend of mine sold a 1997 Corolla in the bay area for 5K with 110K miles about a year ago. I guess I think thats ludicrous.

[SilverZ]

FINANCING is the biggest factor here... the cars are usually sold for 0%... whereas the toyota's and hondas have 3-6%... so therefore their actual depreciation is understated because it doesnt take into account that most people finance.

[Maverick]

One of those cars could be my next... if it's a good enough deal, I could make myself like any of them.