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What's Black or White or Silver All Over?
IRVINE, Calif. -- Buyers of the Honda Civic Sedan can expect their new car to hold its value over the next five years better than any other sedan, according to Kelley Blue Book's evaluation of 2005 model year vehicles. If it's black, white or silver, has a CD player and a sun roof, the lasting value could go up even more.Based on current vehicle data, market conditions for each vehicle, expectations of the future economy the Kelley Blue Book's editorial team also came up with a list of the top 10 vehicles overall what are expected to retain the greatest amount of their original manufacturer's suggested retail price. These vehicles include:Acura TLBMW 5 SeriesInfiniti G35 CoupeLexus GX 470 Mazda RX-8Mercedes Benz CLK 320 CabrioletMINI CooperNissan 350ZPorsche CayenneVolvo XC90Other top finishers by category include the Infiniti G35 (coupe), Nissan 350 Z Touring Roadster (convertible), Volkswagen Jetta Wagon TDI (wagon), MINI Cooper (hatchback), BMW 5 Series (luxury), Volvo XC90 (sport utility) and Honda Odyssey (van/minivan).High performance, low volume vehicles or vehicles with an original MSRP over $60,000 were not taken into consideration on the overall list. Values are based on the September/October 2004 Kelley Blue Book Residual Values Guide.The editorial team said several newly introduced 2005 model vehicles are expected to retain a high percentage of their value looking five years into the future, but fall just short of making this year's list. Vehicles just missing this year's top 10 list include the Chevrolet Corvette, the Mazda 3 Hatchback and the Volkswagen GTI.Some vehicles really don't hold their value well, the editors said. These types of vehicles generally have high production rates or are in low demand in the marketplace. These vehicles are often in rental fleets, have a low perceived value, high maintenance costs and may have a design that does not age well. Some of the 2005 vehicles with one or more of these conditions include the Pontiac Aztec, Chrysler Sebring Sedan, Jaguar X-Types, Mitsubishi Diamante, Mercury Sable and the Suzuki Vitara, the editors said.Just how much does a vehicle depreciate after it rolls off the lot? It's not the car that depreciates the second it rolls off the dealer lot -- it's really just that the transaction changed. According to the editors, the sale goes from being a dealer-to-consumer transaction to either a trade-in or private party sale. In this new transaction, buyers lose tax, license, registration and destination charges, all things buyers pay for when a car is new but that cannot be charged for when reselling it. It's all of these things combined that create the instant depreciation, they noted.Some cars, like the ones on this year's Top 10 lists, have a slower depreciation rate than others. "The depreciation rate of a particular vehicle is dependant upon market conditions, supply and demand," said Charlie Vogelheim, executive editor of the Kelley Blue Book. "A highly popular or desirable car with limited availability will depreciate slower than a car that is in excess supply or less desirable."The editorial team outlined things that buyers absolutely expect to be found in a car today. If they are not there, it could hurt the value and desirability of that car down the road. Those items include power windows and door locks, a tilt wheel and cruise control. Wheels have also come a long way from the days of hubcaps. Picking a car with alloy or premium wheels will likely help you sell it down the road. "These items don't add value to your car, value is actually deducted if they are not there," said Vogelheim.What can also hurt a car's ability to garner top dollar down the road? One is color, the editors say -- it's easy to sell a white, black or silver car, and some variations of red and blue are okay as well. But picking a green, purple, yellow or orange vehicle likely will likely hurt the chances of getting the maximum value when selling or trading the car in later. Personalizing a car with custom paint work, aftermarket products or other wild modifications also make the car less desirable to others, Vogelheim said. "Sometimes we see people putting thousands of dollars worth of aftermarket options and customization into a vehicle and it's likely that they'll never get it back," he noted. "The very things that personalize the car for you can make it less desirable to a broad customer base when you sell it later."The editors recommend looking for the following items in a new car to assist in slowing its depreciation:Choose colors like black, white and silverOpt for power windows, power door locks, tilt wheel and cruise controlGet alloy or premium wheels, a CD player, a remote entry system and leather interior.If there's an upgraded engine option, the larger engine will most often hold value better.Other options that can add value to a vehicle include a sun roof/moon roof, automatic braking system, premium sound system, a roof rack and third-row seating.Kelley Blue Book values take into consideration the region of the vehicle, its engine, transmission, trim style, optional equipment, current mileage and current condition. In addition to actual vehicle details, other considerations that determine a vehicle's value include the current economy and supply and demand. Kelley Blue Book reports factual and timely data reflecting the current marketplace for consumers, financial institutions, governmental agencies and the automotive industry.Visit Kelley Blue Book: www.kbb.com"