Let me plant this scenario in your head, as I'd bet this has happened to a majority of you reading this right now. I'll admit, it's happened to me. Here's the scenario:
You're at the car dealership, and you've picked out the car of your dreams, or perhaps something to get you from point A to B and/or handle that new addition to your family. You discuss financing options with the dealership and pat yourself on the back for negotiating a notable reduction in price from where you started. By at this point in time, you're quite proud of yourself. You drive the car off the lot and feel like a victor for what might be days or weeks.
Then, one sunny afternoon (or since I live in Seattle, stormy winter's night) while checking the resale value of your car online, you realize that with just a couple thousand miles on what is essentially your brand-new vehicle it's worth thousands, or perhaps even tens of thousands of dollars, less now than what you paid for it just months prior.
This is the plight of the new car purchaser. Consumers can certainly trade down to used cars for a cheaper sticker price, but they'll often pay the penalties of buying as-is with no warranty and could be in line for a number of repairs. If these same consumers choose a new vehicle, their warranty will cover a number of repairs and maintenance options, but they'll deal with their vehicle immediately depreciating once they drive it off the lot.
What the new car purchaser would really prefer to do is find that common ground between buying a new car and not having it depreciate rapidly over time. Unfortunately, the average new car in 2014 is expected to lose 60% of its original value after five years. Thankfully, we have Kelley Blue Book to help us out.
10 car models with the highest resale value
Kelley Blue Book recently released a report detailing 10 car models that hold the highest resale values after the five-year mark. According to its figures, all 10 of these car models maintain at least half of their original value after five years. As a car enthusiast, perhaps nothing surprised me more than what car model held the No. 1 spot!
By understanding which models deliver the best resale, we not only can make smarter decisions as consumers, it could point to which vehicles are likely to drive automakers' sales higher moving forward.
Here are the 10 car models with the highest resale values (all models are 2014).
10. Dodge Challenger: resale value at 36 months (60.8%) / 60 months (50.5%)
Behold the ongoing rebirth of the American muscle car! Because of consumers' seemingly insatiable appetites for horsepower at the moment, seeing the Dodge Challenger squeak in at No. 10 isn't a surprise in the slightest. The Challenger is maintaining high interest among consumers for its reasonable price point -- ranging from a tad over $26,000 up to nearly $46,000 -- and heart-pumping 305 to 470 horsepower. An aggressive, sleek look coupled with unbridled power should keep Challenger sales rolling strong in 2014.
9. Chevrolet Silverado 1500: resale value at 36 months (59%) / 60 months (50.6%)
What a difference a remodel can make for General Motors' (NYSE:GM) Chevy Silverado. It's been roughly eight years since the vehicle has had a major redesign, but it's clear from initial sales of the vehicle that GM has had trouble simply keeping up with demand. Although sales have stagnated over the past two months, as Foolish auto analyst John Rosevear pointed out, the average number of days a Silverado sits in a car dealership's lot before being sold is lower than both of its major domestic rivals. That proves the demand is there and gives us a primary reason Silverado's resale value is so high.
8. Honda CR-V: resale value at 36 months (63%) / 60 months (50.7%)
Why Honda Motor (NYSE:HMC)? Simple: reliability. Consumer perceptions can go a long way to boosting the value of a vehicle in the auto sector, and Honda vehicles exude the idea of being economical, maintaining good gas mileage, and requiring less long-term maintenance relative to their peers. The CR-V is the perfect blend of the above, blending the space of an SUV into a compact form, while still providing reasonable gas mileage and the expectation of years of drivability without issues.
7. Chevrolet Camaro: resale value at 36 months (63.7%) / 60 months (51.9%)
Have I mentioned that Americans are really fascinated with the resurgence of the American muscle car? Perhaps no vehicle has captivated the attention of consumers than the Chevy Camaro, which is the best-selling muscle car -- topping Ford's (NYSE:F) Mustang and the Dodge Challenger -- since 2009. In 2013, the Camaro nosed out the Mustang for the top spot in muscle-car sales and actually left the Challenger eating its dust. With extremely reasonable price points and an engine that cranks out 323-580 horsepower depending on what model you choose, the Camaro's future and its resale value looks bright.
6. Toyota Tundra: resale value at 36 months (63.7%) / 60 months (52.3%)
We have to jump all the way up to the No. 6 spot to see our first appearance of a Toyota (NYSE:TM) vehicle -- but here's a hint: You'll get used to it! The Tundra is a bit of a curious case, as it's not even close to being among the top 20 vehicles sold. Instead, Ford's F-Series pickups, the Chevy Silverado, and the Dodge Ram run circles around the Tundra in terms of total units sold. What's curious is that it holds the most superior resale value of the bunch, likely having to do with consumer perception of its superior reliability, as well as the fact that it can actually come with a number of equipment add-ons that can give it an edge over its peers.
5. Chevrolet Corvette: resale value at 36 months (67.5%) / 60 months (53.5%)
Surprise! Americans like muscle cars! General Motors is surprisingly cleaning up on this Kelley Blue Book list, but it does have a major redesign of the Chevy Corvette to thank for that.
In years past, you pretty much had to sign over your first born to park a Corvette in your driveway. But the redesign, which comes complete with a new hydroformed aluminum chassis, can be had for a bargain-basement $52,000 MSRP and delivers 455-460 horsepower. As long as longtime Corvette enthusiasts don't balk at the stylistic changes, there's a good chance the Corvette will remain on this list for some time to come.
4. Toyota 4Runner: resale value at 36 months (66.6%) / 60 months (56.2%)
Sometimes minimal change is for the best, as we see with the No. 4 spot on Kelley Blue Books' resale value list with the Toyota 4Runner. It's been four years since there's been a major resdesign of the 4Runner, and this appears to be one of those situations where the automaker says, "If it isn't broke, don't fix it!" The 4Runner relies on consumers' perception of reliability for the Toyota brand and the fact that few midsized off-road capable SUVs remain on the market.
3. Jeep Wrangler: resale value at 36 months (70.3%) / 60 months (59.1%)
In addition to unbridled horsepower, the resale value of genuine off-road vehicles is unparalleled with the Jeep Wrangler. This is the second year in a row the Wrangler has held the No. 3 spot, and it's the highest-ranked American-made brand on the list. With genuine off-road-capable vehicles becoming difficult to come by these days as automakers move more toward luxury features, the Wrangler is likely to remain on this list because of this niche aspect.
2. Toyota Tacoma: resale value at 36 months (73.7%) / 60 months (61.9%)
Yet again, another Toyota vehicle in the top six! Like the previous Toyota models, the historic reputation of Toyota is what appears to drive the value of these vehicle down at a much slower pace over the long term. With few frills added, the Tacoma is simply a reliable midsize truck that consumers can drive the wheels off of without worrying too much about repairs or gas mileage.
And the No. 1 vehicle for best resale value is ...
1. Toyota FJ Cruiser: resale value at 36 months (81%) / 60 months (70%)
That's right ... the FJ Cruiser. Perhaps one of the odder-looking vehicles on the road takes the best resale value yet again and clinches Toyota the position as top dog for resale value in the U.S. The FJ Cruiser's leading resale value comes from a combination of unique styling, which simply has no comparison, as well as its ability to successfully navigate off road. Being able to combine city and utility functions into a unique body styling earns the FJ Cruiser the honor of America's best resale value vehicle.