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What the residual value of the Canadian Black Book Review, the car that loses value the cheaper the least to

On Thursday, the Globe and Mail on Friday, May. 15, 2009 03:16 PM EDT
Bought a Mini Cooper hatchback 25.800 $ in 2005 to a value of about $ 14,000 today, or 54.3 percent of its initial value. In other words, more than four years, the Mini Value of $ 11.800. That is approximately $ 3,000 per year or $ 250 per month.

Not bad.

In fact, the last digits of the residual value of the Canadian Society Black Book, that the Mini brand offers the best residual value of a brand in Canada over the last four years.

Oh, but then there’s Lincoln. Ford Motor Luxury Brand is the exact opposite. Lincoln LS sedan, bought four years ago for $ 43,865 as the model 2005 is probably worth around $ 7800, or 17.8 percent of the original value. The LS, it costs about $ 36.000 for that reason alone have the write-off – about 9000 $ per year or $ 750 per month.

And that’s why the resale value – also known under the name of the residual value – is so important. No cost for the property has a greater impact on your vehicle in the line after the depreciation. This is shown by the number of cars, the less value is also the cheapest to own.

Or in other words, the buyer of a vehicle for a strong brand with high arrears to be paid out before, but after four years, the car was worth much more than many rival models for the trade in time. The net profit on the street more than compensate for the rising costs in advance.

CBB after eight brands of voltage above the average of the values of resale during the last four years. The Mini brand was up to 54.3 percent after four years, followed by Toyota (51.3 percent), Honda (51 percent), Smart (48.5 percent), Acura (44.4 percent), Mazda ( 41.6 percent), Volkswagen (40.9 percent) and Mitsubishi (40.2 percent). The average of the industry for cars 37.8 percent.

All other passenger car brands were below the average – by some big margins. Oddly, certain brands traditionally tour in subparagraph performance.

For example, the Mercedes-Benz brand was up 0.9 percentage points below the average, after four years. Audi and was up by 2.3 percentage points below the average, 4.3 percentage points Lexus and BMW 4.4 percentage points.

As with the models, without having the exact percentages are retained, “said the CBB 2009 Top-10-models, the values are in good condition Toyota Rav4, Dodge Sprinter, Mini Cooper, Toyota Echo, smart fortwo, Honda Civic, Toyota Tacoma , Toyota Corolla, Toyota Matrix and Mazda3 Mazda.

Canadian Black Book data reflect the actual performance in the last four years. That is something other than the predicted values released earlier this year by Automotive Lease Guide (ALG), something of a rival.

In its annual forecast sales of securities for the new models, Honda ALG Canada in first, followed by Toyota, Nissan, Mazda and Subaru as the five remaining brands – brands that are expected to remain the best value of three years. , For luxury, Infiniti, Acura, Lexus, Audi and BMW are the five best for the operation of their value.

Obviously intelligent vehicles accurately view and buyers at the current level of the residuals planned – especially now, with the common market flooded by exceptional offers and great discounts. Although Toyota is on top of the pile with two CBB and ALG Toyota residues are surely for the future.

Indeed, the current modernization and the lowering of prices will certainly affect the resale prices for all and not just Toyota. The price of used vehicles in general almost certainly fall.

Consequently, while the film in May, the relatively little change in the ranking by brand value. Marks on the top today, in May of years. It is, Toyota and Honda in May, the most important brands, although the actual value of the vehicles of the brands – and others – May is much lower.

So it seems obvious that today the beautiful and the negotiations will most likely come with a price of three, four, five years, also. In fact, the government leaders themselves, that every $ 1 discount on the price of a new vehicle pushes down the value of the same model of 60 cents to 1 $.

In general, the payback will be faster vehicles in large quantities regularly large discounts to customers, or rent a car or fleet company. Fast cars are models of devaluation, which are not reviewed for years – they are the age and not good.

Even politicians who are on the resale value, they know that there is a big problem for the buyer. Diving resale values can take even longer because the owner of their car loans, which the cars are. This is called the “upside.”

But the owners, not with your head down often a shock to the trade in the period: the car that you thought was worth $ 13,000 $ 14,000 or is only $ 9000 $ 10,000 or more.

There are two ways to keep in mind:

Borgen, as little as possible and to repay in two or three years, if possible, four or five, as most are not;

A vehicle with excellent resale value to begin.

This does not ignore the different types of automobile manufacturers to sweeten its customers – from the cash accounting at the front, the interest, without Gaskarten, prices and employees of non-payment-90-days-a-Tuna Commission sale.

But the smart shopper will also be available at the brands and models, which offer customers a profit not only at the time of purchase, but for the exchange.

Both CBB and ALG does the resale value is one of the most important competitive advantages over each manufacturer of vehicles. The figures for the ALG and the two of the CBB are often the companies to finance their words of a lease.

The increase in maturity, the more rent to pay. This is because the payments for the monthly rent based on the height of the vehicle is a value at the end of the lease.

In other words, a car $ 25,000 should have a value of $ 13.500 by the end of the lease is in place is much cheaper in relation to the payment of monthly rent for a vehicle should have a value of $ 9500th

But if you purchase or rent, the residual to play an important role in the finding that the possibility of time for a new vehicle replaced. It’s simple, really: the older your car is worth, you get more from your exchange.

And that means that the owners of the Mini Cooper on the search, with the trade feel better than anyone else in those days.

Depreciation

Various studies all costs that the amortization is the largest carrier costs. The other costs are fuel, insurance, financing, repair, maintenance, licensing and registration.

But some argue that the depreciation should not be considered as a whole ie the costs for the property. This is for those who intend to use their cars and trucks until they, out of the scrap, the depreciation is not really important.

Some, also contend that because the new car values differ from region to region, there is no way to evaluate the (real) net car after three or four years – with the exception of general conclusions that are not necessarily significant regional differences.

Depreciation is determined by a multitude of variables – the market conditions for the updating, the strength of the brand and also the proportion of owner maintenance of vehicles.

Regardless of how many years do you think your car and you are not a devaluation of the variable costs, possession of a car is a financial commitment and ongoing. There is no controversy on this issue. Thus, when managing your finances to the family, it is extremely important to understand how the possession of a car before moving on to your portfolio.

Orphan brands

The residual value of vehicles, their brands are going in the current restructuring of the automotive industry should fall, said the official who have studied what happens in the last few years, if the marks are orphans.

In recent years, the Oldsmobile (2004) and Plymouth (2001) died of the brands, and therefore the resale value of the fallen.

“What happened with Oldsmobile was that the values of Oldsmobile dropped a lot of cars faster than the brands that are still operational,” says David Champion, the auto-test in Consumer Reports.

For a year after the brand from that in two years, Oldsmobile or Plymouth suddenly had the value of a duration of five years of the car.

Accessibility: The prices are under downward pressure

Auto analyst Dennis Desrosiers of Desrosiers Automotive Consultants says the variables that influence the price of the vehicles (or residual) can be divided into three categories:

Factors under the control of the consumer, such as mileage, wear and tear and accidents.

Factors which to a large extent under the control of the vehicle, the company and distributors, as prices for new vehicles, the strength of the dealer organization, the quality and perception of the value of each vehicle, and how at the end of rental vehicles Remarketed. This area is also the degree of involvement and the sophistication of the traders in the market for used cars and especially the extent of any producer of plays in the fleet market.

Factors which to a large extent outside the control of consumers, producers and distributors, such as the supply of used vehicles, tax and tariff changes at the end of the rental fleet and the acquisition of Tariffs and Trade in the price. Also in this group, sales of new vehicles, a long list of variables, the exchange rate and cross-border trade of used cars.

Desrosiers describes the data show that most of these factors exerted a downward pressure, the prices of vehicles in the course of the last decade.

“The cars have about 6-10 points of the value of the last ten years, and small trucks worth 15-20 points compared to the original MSRP (manufacturer suggested retail prices),” he says in a recent letter to its customers.

Lower values depressed the growth of the use of vehicles on the market because the buyer walked off the search for better offers. Desrosiers said sales of used vehicles by around two million units at the beginning of the decade to around 2.6 million units last year. It expects the sale of used cars for its growth, nearly three million units in the coming years.

“This low price of vehicles are the main reason,” he says.

Canadian Automotive Lease Guide residual Rankings

Mainstream brands
Average of 48 months will be residual from 34.4 percent

Honda: 40.4 percent
Toyota: 39.4
Nissan: 39.2
Subaru: 39
Mazda: 38.6
Volkswagen: 37.2
Mitsubishi: 37
Saturn: 36.2
Below average (in alphabetical order): Buick, Chevrolet, Chrysler, Dodge, Ford, GMC, Hyundai, Jeep, Kia, Pontiac, Suzuki

Luxury Brands

Average of 36 months is 41.0 per cent residual

Infiniti: 46.4 percent
Acura: 45.0
Lexus: 44.7
Audi: 43.6
BMW: 43.5
Land Rover: 42.6
Porsche: 42.1
Below average (in alphabetical order): Cadillac, Jaguar, Lincoln, Mercedes-Benz, Saab, Volvo

Passenger Cars

Canadian Black Book The resale after 48 months, the average of the sector is of 37.8 percent of the original price. The rankings show how above or below the average of the mark

TOP AVERAGE

Mini: 16.5 percentage points
Toyota: 13.5
Honda: 13 / 2
Smart: 10.7
Acura: 6 / 6
Mazda: 3 / 8
Volkswagen: 3 / 1
Mitsubishi: 2 / 4

Below average

Subaru: -0.2
Mercedes-Benz: -0.9
Volvo: -1.3
Nissan: -1.4
Audi: -2.3
Dodge: -2,8
Lexus: -4,3
BMW: -4,4
Suzuki: -5.3
Pontiac: -6.7
Hyundai: -6.8
Infiniti: -7.4
Ford: -8.3
Saturn: -8.6
Kia: -9.4
Cadillac: -10.1
Chevrolet: -10.2
Saab: -12.8
Buick: -14.1
Jaguar: -14.2
Mercure: -18.7
Chrysler: -19.8
Lincoln: -20.0

Vans

Canadian Black Book 48-months the resale value, the average 27.4 percent of the industry

About average

Honda: 16 / 3
Lexus: 16 / 1
Mitsubishi: 15 / 5
Toyota: 14.2
BMW: 14.0
Infiniti: 13 / 7
Acura: 12.0
Hyundai: 10 / 1
Mercedes-Benz: 8 / 1
Saturn: 6 / 9
Subaru: 6 / 9
Hummer: 6 / 2
Nissan: 5 / 5
Volvo: 3 / 7
Kia: 3 / 1
Suzuki: 2 / 6

Below average

Land Rover: -0.2
Jeep: -0.5
Lincoln: -0.8
Cadillac: -1.5
Mazda: -1.7
GMC: -2.1
Buick: -2.8
Chrysler: -3,1
Chevrolet: -4,1
Ford: -5.3
Dodge: -6.9
Pontiac: -8.4

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