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Tips for a tolerable trade-in

Earlier today, I referenced a newly published list of the eight worst new-model vehicles in terms of projected depreciation. If you are in the market for a new ride, but are already thinking of the inevitable trade-in, industry experts have some points you may want to consider (think of it as the pre-nuptial agreement of the auto-shopping world).

The article points out that the cars and trucks most likely to retain their value are ones that are "well-designed, well-engineered, and are usually in limited supply and high demand." Choose a popular color, such as black, white, or silver, and avoid wild colors such as purple or orange. Additionally, select features that are in high demand, including alloy wheels, anti-lock brakes, navigation sensors, CD players/changers, and leather seats.

Last, increased fuel costs are taking their toll. A spokesman with DaimlerChrysler (NYSE:DCX) recently noted that "fuel cycles can cause -- as we've seen in the past -- consumers to react more positively toward cars versus larger vehicles such as SUVs."

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

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Last updated: May 28, 2012: 07:32 PM

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