Cars may be falling out of favour with consumers, but you don't have to spend a lot on a new one to benefit from strong resale values, as Canadian Black Book's 2018 Best Retained Value Awards indicate.
Toyota Prius C
Toyota Prius V
The organization has just released its latest data on resale values for four-year-old vehicles. This year’s awards see some returning winners at the entry-level end of the spectrum, as well as a couple of high-profile, higher-priced newcomers.
We’ll start out with a car that Canadian Black Book’s (CBB) Brian Murphy called a pleasant surprise. This is the first time the Corvette has won a retained value award, and Murphy said that’s because this is the first year the much-improved seventh-generation model was eligible, as it was introduced in 2014.
“GM really did dial that vehicle up and addressed things like the interior,” said Murphy. “The level of performance went up so much and the market seems to have rewarded that.”
The other car Murphy said he was happy to see recognized was Benz’s compact CLA sedan, another car that was introduced in 2014. Murphy said this car has proven a good addition to the compact/entry-level luxury segment and has fared well in the marketplace.
Now we move on to a couple of returning winners in the hybrid segment: First, the Toyota Prius C, a subcompact hatchback that serves as the entry point to Toyota’s hybrid vehicle family.
The Prius V is notably larger but is considered a compact by CBB’s standards, and wins this year’s award in that category once again. Murphy said that while electric vehicles are gaining popularity, hybrids like the Prius will outperform electrics for some time due to “consumers not yet having faith in the [electric] product just yet.” He said EV resale values are half of the industry average, something that won’t change until both driving range and access to charging facilities improve. For now, a more traditional electrified vehicle like the Prius is the most desirable way to cut fuel consumption.
This mid-size sedan boasts strong resale values, thanks to its long-standing reputation for reliability and build quality.
Toyota also takes the win in the full-size sedan category with the Avalon, a car that uses the Camry as a starting point and adds extra luxury and interior space.
This mid-size luxury sedan competes against better-known, stronger-selling models like the BMW 5 Series and Mercedes-Benz E-Class. But big sales numbers don’t necessarily make for the best resale values. In the GS’s case, fewer examples available on the used market and the Lexus brand’s reliability record (it’s built by Toyota, after all) combine to help this car retain its value.
It’s not hard to imagine why any vehicle wearing the Porsche name would hold its value: This is a sought-after brand, and the Panamera combines Porsche performance with mid-size sedan practicality and upscale accommodations.
This muscle car beat out the BMW 2 Series and Mazda MX-5 for top spot among sports cars, which we think speaks to how well the Challenger name resonates with buyers who remember the original version from the 1970s. Remember, this year’s awards recognized four-year-old cars, so it’ll be two more years before the 2016 Challenger line-up, which introduced the 707-hp Hellcat variant, will be eligible. We fully expect to this car to be a winner again in 2020.