Trucks and SUVs not only can be cheaper to insure, but they also are more likely to hold on to their resale value.
In the 2016 Kelley Blue Book Best Resale Value Awards, announced Wednesday, KBB notes that eight of the top 10 vehicles are trucks or SUVs:
That fact is yet another example of the American public’s switch from traditional cars to tall vehicles like pickups and SUVs.
The top brand overall for 2016 is Subaru for the second consecutive year, and the top luxury brand is Lexus for the fifth consecutive year.
For KBB’s 2016 Best Resale Value Awards, the company evaluated 2016 model-year vehicles based on the percentage of their manufacturer’s suggested retail price they are projected to retain in the first five years of ownership, according to a news release.
On average, 2016 model-year vehicles are expected retain only about 34.8% of their original value after five years of ownership. That means that a $50,000 car will drop in value to $17,400 over that time period.
Resale value is largely based on supply and demand as well as current and projected future market conditions.
Jack R. Nerad, executive editorial director and executive market analyst for KBB, notes that most options and packages added to a vehicle don’t necessarily increase its resale value:
“However, there are exceptions to the rule, such as a high-performance engine or a performance package in a sports car.
“Regional preferences can significantly impact the value of a vehicle as well. In the colder sections of the country, a two-wheel drive vehicle’s resale value often will not be as high as a four-wheel or all-wheel drive version of that same model. In warmer climates, black (or dark-colored) cars will not have as high resale value as they could command in other regions.”
The top 10 2016 vehicles based on resale value are:
- Toyota Tacoma
- Toyota 4Runner
- GMC Canyon
- Chevrolet Colorado
- Jeep Wrangler
- Toyota Tundra
- Subaru WRX
- Chevrolet Camaro
- GMC Sierra
- Subaru Forester
More from Money Talks News:
- The 10 Most Reliable Car Makes and Models
- Trump Worth $10 Billion Less Than If He’d Simply Invested in Index Funds
- 7 Cheap Car Fixes That Easily Pay for Themselves
Image: iStock
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