It’s a good time to drive a Subaru or Lexus.
Kelley Blue Book recently released its projections for the best brands with resale value and Subaru nabbed the top spot for all-around vehicles, while Lexus grabbed best for luxury vehicles. Resale, along with auto recycling, helps to give used cars the second life they deserve and helps to keep the costs of obtaining a used car or used car parts down.
Not that any of that should be news to Subaru or Lexus.
Not a New Honor
Kelley Blue Book honored Subaru with the best brand distinction last year, and Lexus has received the honor the past five years. The difference this year is the number of vehicles each company has added to the list.
Of the 22 categories ranked by Kelley Blue Book, Subaru won three of the positions and Lexus beat out all other manufacturers with six on the list.
• Compact car: Subaru Impreza
• Sporty compact car: Subaru WRX
• Midsize car: Subaru Legacy
• Entry-level luxury car: Lexus RC
• Luxury car: Lexus GS
• Hybrid/alternative energy car: Lexus ES 300h
• Luxury midsize SUV/crossover: Lexus GX 460
• Luxury full-size SUV/crossover: Lexus LX 570
• Hybrid SUV/crossover: Lexus RX 450h
Established in 2003, Kelley Blue Book started the rankings to help consumers shop for automobiles that would retain the highest resale value, which is particularly useful for people leasing vehicles.
As of now, Kelley Blue Book projects the average car will retain about 34.8 percent of its value after five years. So, a customer leasing a $25,000 vehicle for five years can expect that car to be worth only $8,700 by the time they finish a five-year lease.
Once the down payment, monthly payment, sales tax, and lending rate have been accounted for, the average consumer could spend around $18,500 to lease the vehicle for that time, losing out on approximately $2,200.
However, if that same consumer bought a Subaru or a Lexus, leasing a vehicle could actually save them money in the long run, especially with some vehicles retaining upwards of 62 percent of their resale value.
There are multiple factors that go into determining a car’s resale value, including geography, climate, car color, upgrades, and options, among others, go into a vehicle’s resale value.
Fad colors such as bright orange or neon green may be popular some years, but lose value when they go out of style. In areas that receive heavy snowfall and other precipitation, and have rugged terrain and dirt roads, vehicles with four-wheel and all-wheel drive retain extra value. Options such as sunroofs and GPS are also mainstays.
Kelley Blue Book knows this, too, which is why Subaru — a company known for all-wheel drive and rough-terrain ready vehicles — and Lexus — a company known for solid manufacturing and high-quality materials — tend to top the list year-after-year.