This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Cars That Retain Resale Value After 5 Years

PORTLAND, Ore. (TheStreet) -- Your car is a significant investment and should get at least as much consideration as you'd give any other equities.

There's a bit of logic in making a long-term investment in a commodity that depreciates in value as soon as it leaves the lot. That vehicle's value drops, but it doesn't just go crashing to the ground. Unless you decide to drive it until it's a pile of parts or buy a less reliable model to save money in the short-term, your vehicle with still have significant resale value of tens of thousands of miles down the road. The folks at auto pricing and valuation site Kelley Blue Book note that depreciation costs a car owner more than gas, maintenance or insurance during the first five years of new-car ownership.

Kelley Blue Book has been publishing its residual value guide since 1981 and knows a thing or two about resale value. That blue book value used car buyers talk about when pricing a vehicle? Yep, same company that's been handing out their Best Resale Value Awards since 2003.

The 2014 model year favored Toyota, much as it did last year and much to the chagrin of Detroit Three loyalists. Toyota and its Lexus division were named Best Brand and Best Luxury Brand, respectively, for their ability to retain their cars' value over the first five years of ownership. Despite the automaker's spate of recalls, Toyota took five out of KBB's 22 vehicle categories while Lexus won two of three luxury categories (the Audi A5 won Luxury Car) and best Hybrid/Alternative Energy Car for its Lexus ES 300h.

Though rivals Nissan, Subaru and Honda took the small and midsized car categories, Honda took best plug-in vehicle and Toyota won both midsize and full-size pickup honors, the Detroit automakers weren't completely shut out. The Chevrolet Corvette won Best High Performance Car, while the Chevy Camaro beat the Porsche Cayman for Best Sports Car.

There aren't a whole lot of vehicles out there that give car buyers the majority of their investment back five years later. According to Kelley Blue Book, the following vehicles are a buyer's best chance of getting half of their money back or more once it's time to sell:

10. Dodge Challenger
MSRP: $26,495
Resale value retained after five years: 50.5%

Even under Fiat ownership, some elements of Dodge's mouth-breathing, knuckle-dragging, He-Man-Woman-Haters-Club approach to auto sales managed to survive. The built-by-car-guys-for-car-guys Challenger and its rebooted muscle car aesthetic still lingers to lure meatheads who value racing stripes and rims over, oh, just about any other element of their vehicle.

Ordinarily, that alone wouldn't make one of these vehicles worth a second look five years from now -- even among the most superficial gearheads. But Fiat helped the Challenger smarten up a little bit by coupling a 305-horsepower V6 engine or 375-horsepower 5.7-liter V8 Hemi with loads of interior space, real-time touchscreen navigation, traffic updates, Bluetooth connectivity, Sirius XM satellite radio, keyless entry/starter and a whole lot of Harman Kardon audio upgrades.

Also see: 10 Best Convertibles for Summer 2014

Long after Harley goes electric and all the other performance ponies start closing in on 35 to 40 miles per gallon, these updates will make a 2014 Challenger worth a half-price look.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.24 0.00%
FB $83.01 0.00%
GOOG $555.17 0.00%
TSLA $190.41 0.00%
YHOO $44.47 0.00%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs