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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® (TMV) 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%

edmunds
 

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hm... maybe this list is just for american car.. come on... they should have some list for the germans, korean and japanese too
 

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1.Dodge Neon — 26.1% dang this car is alrite lol.. what is wrong with these americans?

2.Chevrolet Cavalier — 26.3% well they have cobalt so no more goodies for this car huh look at BMW. they didnt just make a car and kill it or rename it next day.

3.Pontiac Sunfire — 27.4% er....pontiac... and chevy damn redundants.


4.Mercury Sable — 27.5% er... ford mercury/??taurus and sable?? look above comment

5.Ford Taurus — 28.5% hm... i tot they stop making this car and open door for ford 500?? rite...maybe too many of them in rental car parking lot. so no more value


6.Chevrolet Aveo — 28.6% damn sux ass rebadge korean minicar.


7.Dodge Stratus — 30.1% hm...but how bout 300C??? those ppl trading their import for that car. why put this car on the list.


8.Buick Park Avenue — 30.7% ah dat name buick... sound so OLD ppl


9.Ford Focus — 31.4% need to renew.. i saw the new one.. not so bad


10.Chevrolet Malibu — 31.7% dat sux i tot this car is new or just recently refresh?
 

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///M3ssican said:
that's why 99-00 Civic Sis can still go for an honest 14k
actually.. i saw a used 00 si for 8-9000ish but it had about 100,000 miles. :wow

can anyone find out if that really is american cars only or if its supposed to have world cars in there already?
 

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That's for ALL models...
Here's another article on this subject, which also bases its data from Edmunds.com, but lists the best as well.

10 Cars that Lose Value Fastest

The Basics
10 cars that lose value fastest

Depreciation has a dramatic effect on both leasing costs and trade-ins. Here's a look at how it is figured, when it matters and the 10 best and worst when it comes to retained value.

By Bankrate.com

Depreciation. Residual value. Same concept, different perspective. It's like considering whether the glass is half-full or half-empty.

But one thing's for sure: If you're considering buying a new car or leasing, it's critical that you get it.

Depreciation is the negative way of looking at it -- how much value is lost in a given period. Residual value is a more positive perspective -- how much value is retained.

We all know the value of a new car drops as soon as you drive it off the lot, but how much it drops and continues to fall as the miles and the years go by has been a guessing game for most consumers.

No longer. Various organizations have set up sophisticated tracking and database systems to gather and analyze data from sales, resales, trade-ins and leases to help you make comparisons between different leases easily and accurately.Don't let retirement
sneak up on you.
Create a perfect plan.



High-dollar machines stay that way
The car-shopping site Edmunds.com says the cars that hold their value best are also among the most expensive -- cars such as BMWs, Mercedes and Acuras. They lose a little less than half their value after five years and 75,000 miles.

The percentages that follow the model show the estimated residual value after five years; the smaller the percentage, the more depreciation is projected to occur and the lower would be the residual value.

Here are the top 10 from Edmunds with the percentage of retained value:

Retained value after 5 years
Top 10
BMW Z8 54%
Mercedes Benz C class 54%
Mini Cooper 53%
Porsche 911 53%
Porsche Boxster 53%
Lexus SC430 52%
Acura TL 52%
Honda s2000 52%
Dodge Viper 52%
Lexus GS300 52%

Bottom 10
Hyundai Accent 20%
Kia Spectra 22%
Chevrolet Cavalier 23%
Dodge Neon 23%
GMC Sonoma 23%
Dodge Intrepid 24%
Pontiac Sunfire 24%
Pontiac Grand Am 24%
Chevrolet S-10 24%
Dodge Stratus 24%

Source: Edmunds.com

These Edmunds.com depreciation percentages are based on the national True Market Value (TMV), a proprietary Edmunds.com calculation that is different from the manufacturer's suggested retail price (MSRP). The TMV is based on transactions throughout the country, and Edmunds.com believes it is more in line with what consumers are actually paying than is the MSRP.

Another yardstick, similar results
Another company, LeaseCompare.com, helps consumers compare leasing programs from competing banks using a three-year term and MSRP rather than Edmunds' five-year term and TMV. Their worst 10 and the retained value:

Retained value after 3 years
Bottom 10
Hyundai Accent 22%
Chevrolet Tracker 2WD 26%
Mazda 2300 2WD pickup 27%
Kia Rio 28%
Oldsmobile Alero 28%
Chevrolet Cavalier 29%
Dodge Intrepid SXT 29%
Kia Spectra 29%
Mercury Sable GS 29%
Buick Century 30%

Source: LeaseCompare.com

Among popular cars in the $20,000 range, domestic models don't do as well as imports, according to Edmunds.com, which publishes complete listings on residual values. The Ford Taurus SE four-door wagon retains 28% while the comparably priced Honda Accord EX four-door will still be worth 49% of its original cost after five years. Edmunds says the Taurus will lose more than a third of its value in the first year alone; the Honda about a quarter.

The popular Chrysler PT Cruiser, with a TMV of about $26,000, will have a residual value of 33% after five years. Cadillacs and Lincolns have some of the highest depreciation rates -- as much as 50% in one year, compared to cheaper compacts which can lose 35% of their value in their first year. The 2003 Lincoln Town Car will be worth about 32% of its TMV in 2008.

Cars.com also has studied residual values over three years. Its top 10 includes many of the same cars as the others, but placed at No. 5 the Honda Odyssey as retaining 60% of its MSRP of $27,360; and the Toyota Tacoma at No. 10, retaining 57% of its $22,335 MSRP.

When depreciation matters
Edmunds.com senior analyst Jesse Toprak says consumers should pay as much attention to retained value as monthly payments if they plan to keep a vehicle only a short period.

"If you are going to keep the vehicle for five years or longer, the depreciation rate will not have as dramatic an effect," he says. "But if you are going to trade it in a few years, you should look closely at depreciation. You have to look at the total cost."

Depreciation and residual value are absolutely critical in a lease, because your monthly payments are primarily determined by a car's estimated residual value.

Here's how:


All lease prices start with the residual value -- the amount the car will be worth at the end of the lease. Regardless of the MSRP, the monthly lease amount equals the amount of depreciation divided by the number of months of the lease term -- plus interest and a few added charges to make sure the dealer makes money. You are paying for the amount of its value you use -- the estimated depreciation -- during the lease.

Lenders usually set the residual value, and it's not a number you can negotiate. You can, of course, negotiate the price, and that affects your monthly payment because the depreciation you're paying for is the difference between the price and the residual value.

Vehicles that depreciate more slowly are going to have lower monthly lease payments. That's why a Mercedes can have a lower lease payment than a van. It's also why the least expensive cars on the road are poor candidates for leasing (but more attractive deals as used cars).

A Mercedes at a Chevy price
Take a Chevrolet Tracker with an MSRP of $17,155 and a residual value of only 17%. A simplified transaction would look like this: After three years, that car has a residual value of only $2,916 and would have used up $14,239 of its value. Its monthly lease payment (not including interest and fees) would be $14,239 divided by 36 months, or $396 a month.

Now compare that with the Toyota Tacoma that has an MSRP of $22,235 and a residual value of $13,100 in three years -- 43% of its original value. Dividing the depreciation into 36 monthly payments produces a monthly lease payment of $254. Its original price was $5,000 more than the Tracker, but you could lease it for roughly $140 a month less (or about $43 a month less if the Tracker’s current $3,500 rebate is figured in).

A Mercedes CLK with an MSRP of $50,670 loses only 36% of its value over three years ($17,770) to produce a monthly lease payment of $494 -- just $100 more a month than the Tracker.

That is the power of residual value.
 

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wow american onli dodge viper dat retain value.
 

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boostaholic said:
hmmmm hyundai and kia are not in the list!

hahaha feel sorry for those srt-4 guys~
Actually according to Money magazine the SRT-4 has a whole lot better resale value than a normal Neon - most performance models are like this. Although still not what you'd call "good."

Hyundai Accent... 22% after only 3 years?! That means if you bought one for $10,000 today, in 3 years it would be worth $2,200. Wow.
 

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LevelSevenCivic said:
actually.. i saw a used 00 si for 8-9000ish but it had about 100,000 miles. :wow

can anyone find out if that really is american cars only or if its supposed to have world cars in there already?
werd up RJO I've seen deals like that too


but my Bro's 2000 Si only has 48k miles
 
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