I may never hear the word "depreciate" without thinking of the late great Michael Hutchence and the INXS half-single, "Mediate." Anyway...
After consulting Kelly Blue Book, arguably the expert on the subject of used cars, Forbes released its list of the eight worst new-model vehicles in terms of projected depreciation. Claiming the dubious top spot is the Buick Ranier SUV. With a base price of $32,285, the vehicle, made by General Motors (NYSE:GM), is expected to retain just 42% of its value after two years. Five years out, the Ranier will be worth about 26% of its purchase price. The Dodge Caravan Minivan, a DaimlerChrysler (NYSE:DCX) vehicle that I'm fairly certain half of my new-Mom friends have purchased in the past 12 months, starts with a base of $19,770 but will keep just 41% of this value 24 months later. Third is the Dodge Durango SUV (pictured, right), with a base price of $27,055 and projected value retention of 38% after two years.
Rounding out the top eight:
- Ford (NYSE:F) Crown Victoria Sedan
- Ford E-Series Van
- Kia Amanti Sedan
- Kia Spectra Compact
- Ford Mercury Grand Marquis
Stay tuned for tips on smart shopping for a vehicle that won't utterly disappoint when it becomes time to trade it in ...
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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Reader Comments (Page 1 of 1)
3-22-2007 @ 9:19AM
STEVE said...
I GUESS IF YOU HAVE MONEY TO BURN THEN BUY ANY OF THOSE,BUT IF YOU KEEP THE VEHICLE 7 YEARS OR MORE
" NO LOSS ". MAYBE LEASE FOR A SHORTER PERIOD.
WHY ARE THE USED DEALERS ABLE TO PRICE THEM SO HIGH ON THEIR LOTS?