If you needed an additional reason to pull the trigger on a new Jeep Wrangler, here’s one: The Toledo-built sport utility is again among the best vehicles in the market when it comes to resale value.
For several years running, the Wrangler has held a high spot in Kelley Blue Book’s annual residual value rankings. This year it ranked fourth, trailing only the Toyota Tacoma, Toyota 4Runner, and the Chevrolet Silverado.
The two-door Wrangler also took the top spot for highest resale values among compact SUVs.
Kelley Blue Book’s rankings were announced Wednesday.
Of the top 10 vehicles, only one — the Subaru WRX — was a car. The rest were pickups and SUVs.
“Part of that is due to the shift in consumer tastes,” said Eric Ibara, director of residual values for Kelley Blue Book. “There is a preference for trucks and SUVs. If you look at vehicle sales in 2016, virtually all of the truck and SUV segments went up. If you look at the car segments, virtually all of them were down. That is a stark reminder that consumers are walking away from cars. ...”
The projections are based on the expected five-year depreciation of 2017 model year vehicles.
Kelley Blue Book expects the Wrangler to hold 64 percent of its original sale price after three years and 51 percent after five years. The top-ranked Tacoma pickup should hold 72 percent of its original sale price after three years and 58 percent after five years.
The average 2017 model-year vehicle, Kelley Blue Book says, will retain about 33 percent of its original cost after five years of ownership. That’s down from 35 percent last year and 40 percent in 2014, which was the most recent peak.
Analysts expect used car prices to fall in coming years as more inventory — driven in large part by vehicles coming off lease — hits the market.
Mr. Ibara said generally resale values are driven by supply and demand, though regional factors also can come into play. For example, four-wheel drive models might hold their value better than otherwise similar two-wheel drive models in areas that get snow. Another factor that helps resale values are a lack of incentives or discounts on new models.
“Really that is a key. Wrangler has residual values significantly higher than other Jeep models, and when you look at how they stack up, the incentives on the Wrangler are nonexistent, whereas if you look at a Cherokee or Grand Cherokee, the incentives are considerably higher,” he said.
Toyota was named Kelley Blue Book’s top resale mainstream brand, breaking a two-year streak at the top for Subaru. Porsche claimed the top spot for luxury brands, unseating Lexus.
Other segment winners included the Chevrolet Bolt for electric vehicles, the Ford Mustang Shelby for high performance cars, and the Nissan Maxima for full-size cars.
Contact Tyrel Linkhorn at firstname.lastname@example.org or 419-724-6134.
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