Auto Net Financial News

Earlier this month Kelley Blue Book released its annual awards for best vehicle resale value that should be taken into consideration for Salt Lake City auto loans

Reducing depreciation

You may be wondering which vehicles make the most sense for Salt Lake City auto loans. At least we think you should, because at Auto Net Financial we’ve been working with a wide spectrum of Utah car buyers that have everything from great credit to bad credit for more than thirteen years and we think it’s an important question to ask.

In fact, after seeing the embarrassment and frustration that customers with credit issues often face at dealers that don’t offer second chance Salt Lake City auto loans, we even created a web site featuring a good and bad credit auto loan application. Applicants are then matched with local Salt Lake dealers that specialize in customer credit issues.

The alternative for these buyers, a tote the note dealer, is a problem because these dealers usually don’t report loans or payments to the credit bureaus. This type of loan can also result in a greater chance of repossession.

Not just the price

We also realize that there is more to a car’s cost than just its selling price. Over the life of a vehicle, a number of other things need to be taken into consideration: fuel efficiency, maintenance costs and, most of all, depreciation.

According to Kelley Blue Book (KBB), during the normal ownership period of a car (considered to be five years), its loss in value (depreciation) is the biggest expense. It’s also one area where buyers can realize a significant savings simply by choosing a model that depreciates less than a similar vehicle in the same category.

How KBB determines the winners

According to Kelley, “Taking the time to research and choose vehicle makes, models and options wisely now can help new-car shoppers hold value down the road when they go to sell or trade-in the vehicle.” Based on projections made by the staff at Kelley, the awards, “honor vehicles expected to maintain the greatest proportion of their original retail price after five years of ownership.”

Just in case you were wondering, the list does not include low-volume vehicles or new cars with a suggested retail price of more than $60,000 (except in the luxury and high-performance categories).

The winners:

2011 Best Resale Value: Brand

Subaru

2011 Best Resale Value: Luxury Brand

BMW

2011 Best Resale Value: By Vehicle Category

Subcompact Car: Honda Fit
Compact Car: MINI Cooper
Mid-Size Car: Honda Accord
Full-Size Car: Ford Taurus
Near-Luxury Car: Lexus IS
Luxury Car: Audi A5
Sports Car: Subaru Impreza WRX
High-Performance Car: Ford Mustang GT
Hybrid/Alt Energy Car: Volkswagen Golf TDI
Compact Utility Vehicle: Honda CR-V
Mid-Size Utility Vehicle: Toyota FJ Cruiser
Luxury SUV: BMW X5
Hybrid/ Alt Energy UV: BMW X5 XDrive35d
Mid-Size Pickup: Toyota Tacoma
Full-Size Pickup: Ford F-Series Super Duty
Van: Toyota Sienna
Wagon: Subaru Outback

2011 Best Resale Value Top 10 Models
(In alphabetical order)

Audi A5
BMW X5
BMW X6
Honda CR-V
Jeep Wrangler
Lexus GX
Lexus RX
Subaru Outback
Toyota FJ Cruiser
Toyota Tacoma

The Bottom Line

When buying either a new or a used car, don’t confuse cost with price. The price is what you pay for the vehicle, while the cost is what you will end up paying for it over the life of its ownership.

According to Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book’s kbb.com, “Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade-in the vehicle used.”

Auto Net Financial has helped thousands of people with bad credit buy cars and reestablish their auto credit at the same time. Our nationwide network of affiliate dealers specializes in good and bad auto credit.

So if you are serious about getting your car credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.