Analysts: Toyota is tops on predicted resale value

Chris Woodyard | USA TODAY

LOS ANGELES — Toyota is a safe brand choice for buyers seeking top resale value, two firms that predict expected depreciation in vehicles said Monday.

Toyota, along with its premium division Lexus, was named tops for residual value overall by Kelley Blue Book for the third year in a row. The other agency, ALG, said Toyota had the top resale-value vehicles in eight segments, more than from any other automaker. Both always issue their predictions on the eve of the media preview of the Los Angeles Auto Show, which starts Wednesday.

In addition, KBB's top vehicle among all 2014 nameplates for retaining its value was Toyota's FJ Cruiser, an off-road vehicle that's due to go out of production in a year. It's expected to retain 70% of its original value after five years.

Toyota officials predictably reacted with glee."With some of the best residual values in the industry, Toyota customers can sleep at night knowing that they have made a sound investment," said Toyota Group Vice President Bill Fay in a statement.

Expected resale value can be a top consideration for new-car buyers. But it's not just a function of how good or popular a model is considered. Strong resale value also is best among vehicles that sold for close to their list prices without a lot of sales incentives or other discounts.

FJ's top listing "is testament that Toyota has limited volume of its vehicles," says Eric Ibara, director of residual consulting for KBB. It also points to how trucks are outperforming cars, which often are sold at greater discounts.

After FJ comes Toyota's Tacoma pickup, off-roaders Jeep Wrangler and Toyota 4Runner, and a sports car, the Chevrolet Corvette.

At the bottom are electric vehicles, which are distorted in the listings because they're often sold with federal tax incentives of up to $7,500, and luxury sedans.

For its top choices, ALG lauded not only Toyota, but Audi and Honda. It noted Mercedes-Benz, too, as a top performer in the luxury category when it comes to resale value.

"Toyota, Audi and Honda captured the most segment honors due to the consistent high value of all their products," said ALG President Larry Dominique in a statement.

Kelley Blue Books' list of top vehicles for retaining value, and the amount they're predicted to retain after five years:

1. FJ Cruiser 70.0%

2. Toyota Tacoma 61.9%

3. Jeep Wrangler 59.1%

4. Toyota 4Runner 56.2%

5. Chevrolet Corvette 53.5%

6. Toyota Tundra 52.3%

7. Chevrolet Camaro 51.9%

8. Honda CR-V 50.7%

9. Chevrolet Silverado 1500 50.6%

10. Dodge Challenger 50.5%

KBB's list of top vehicles for predicted resale value by segment:

SUBCOMPACT CAR: Nissan Versa

PLUG-IN VEHICLE: Honda Accord Plug-In Hybrid

COMPACT CAR: Subaru Impreza

COMPACT SUV/CROSSOVER: Jeep Wrangler

SPORTY COMPACT CAR: Honda Civic Si

MIDSIZE SUV/CROSSOVER: Toyota FJ Cruiser

MIDSIZE CAR: Honda Accord

FULL-SIZE SUV/CROSSOVER: Toyota Sequoia

FULL-SIZE CAR: Toyota Avalon

LUXURY COMPACT SUV/CROSSOVER: Infiniti QX50

ENTRY-LEVEL LUXURY CAR: Lexus ES 350

LUXURY MIDSIZE SUV/CROSSOVER: Lexus GX 460

LUXURY CAR: Audi A5

LUXURY FULL-SIZE SUV/CROSSOVER: Lexus LX 570

HIGH-END LUXURY CAR: Lexus LS 460

HYBRID SUV/CROSSOVER: Lexus RX 450h

SPORTS CAR: Chevrolet Camaro

V-6 MIDSIZE PICKUP TRUCK: Toyota Tacoma

HIGH-PERFORMANCE CAR: Chevrolet Corvette

FULL-SIZE PICKUP TRUCK: Toyota Tundra

HYBRID/ALTERNATIVE ENERGY CAR: Lexus ES 300h

MINIVAN/VAN: Toyota Sienna

Vehicles that were tops in their segment according to ALG included:

• Hyundai Accent (Subcompact Car)

• Mazda Mazda3 (Compact Car)

• Chevrolet Corvette (Premium Sports Car)

• Chevrolet Camaro (Mainstream Sports Car)

• Toyota Avalon (Fullsize Car)

• Porsche Panamera (Premium Executive)

• Kia Soul (Subcompact Utility Vehicle)

ALG also established five new segments for 2014:

• Hyundai Santa Fe Sport (Midsize Utility 2-Row)

• Toyota Highlander (Midsize Utility 3-Row)

• Toyota FJ Cruiser (Off-Road Utility)

• Land Rover Range Rover Sport (Premium Midsize Utility 2-Row)

• Audi Q7 (Premium Midsize Utility 3-Row)