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Branding and its effect on resale values

Which brands hold their value?

Realistically some automobile brands will stand up better than others to the test of time and continuous use.

In many respects the old adage ‘You get what you pay for’ will always hold true.

However, the exception makes the rule and if you consider the long standing reputation of the Jaguar brand and its many maintenance problems you realize that sometimes rules are broken.

Here we will review several of the brands that can offer you the highest resale value for your automobile.

Toyota

Toyota

The Toyota brand has long stood for lasting quality, the Corolla being one of the highest resale value automobiles in the world for the last 4o years.

As with many of the Japanese and European cars Toyota will keep the same name for a model throughout the years of updates and style changes.

Not only does this eliminate confusion, it makes the models impossible to forget, no matter how many times you re-sell them.

In 2006 Toyota won the residual value awards (as presented by Automotive Lease Guide) for four different categories.

This proves that a high price tag doesn’t necessarily make a long lasting vehicle.

While the price tag on a brand new Toyota may be higher than some of the other Japanese brands, it will pay for itself by retaining its value for years to come.

Honda

Honda

The Honda brand is another high resale option. In 2006 Honda won the overall residual value award (as presented by Automotive Lease Guide) for the fourth year in a row.

That is something to stand up and take notice of all you perspective Honda owners.

The Accord and Civic being some of the more popular and affordable cars on the road today enforce the lasting nature of these tough little cars.

Again, it may come as a shock that some of the higher priced brands are not the forerunners when it comes to high resale value.

The Japanese brands have long been known for lasting quality, how many times have you heard the phrase ‘Honda’s last forever’?

BMW

BMW

In the luxury category BMW almost invariably wins the title of best luxury resale value.

The Kelley Blue Book announced that not only the 5 series BMW but the mini cooper also holds it’s value the best in the luxury category, adding the 5-series at the top of the top ten list for 2006 best resale value.

Forbes magazine gives that award to the Mini Cooper.

Either way it is BMW motor cars that some of the biggest names in the industry say to invest in if you want to buy a luxury vehicle that holds it value well.

Volkswagen

Volkswagen

Another German option with high resale value is the Volkswagen.

Realistically speaking anyone who lives in a climate with mild winters has played slug bug, calling out when they see a VW Beetle on the road.

This game was invented using that car, simply because there are so many to be found on the road today. Considering most of the older models we see are over 30 years old, thats a significant testament to the life span of a Volkswagon.

Among the most popular models the Jetta and the Passat both hold their value relatively well and one or both of them have been high in the top ten of almost every resale value list I researched.

Bottom line

Bottom line, resale value indicates the effectiveness of a brand.

There are others that retain their value as well, however the above brands are the ones seen on almost every list I researched, making them the best of the best.

One thought on “Branding and its effect on resale values

  1. Bob

    The BMWs and VWs will get you with their maintenance costs; their reliability is low, even though their durability is high. —(The original Honda Accords in the late ’70s were the reverse: they were reliable as could be for the first 5 years, and then everything let go at once, and they disappeared quickly after that.) Now Toyotas and Hondas are great values as new cars, but their low depreciation makes them too expensive when used. It’s better to look for a reliable car that depreciates faster.
    —Depreciation is largely a matter of demand, and demand is largely a matter of public perception. And public perception is often subject to fads and fashions, and doesn’t always coincide with the facts about reliability and durability. Mazdas and Subarus are just about as reliable as Toyotas and Hondas, but are relatively better values as used cars. Some Buicks are very reliable as well. Mazda makes some cool rides, but Buicks and Subarus are kind of dowdy. On the other hand, a dowdy car isn’t as much a speeding-ticket magnet as something stylish (or something red). If you have a heavy foot, you can expect about $600 per year in higher insurance rates from the points. This obviously means a higher cost-of-ownership.

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