If you are thinking about buying a new car soon, you might want to consider the depreciation factor. I asked Jody Victor to give us some insight.
Jody Victor: Cars depreciate - it's a fact - especially if you only intend on keeping the vehicle for 2 or 3 years. To help you decide, here's a recently published list of 10 worst vheicles for depreciation from Consumers Reports.
1. Ford Freestar - The unrefined Freestar is among the lowest rated minivans tested by Consumer Reports and has had below-average reliability of late.
2. Ford Crown Victoria - This large sedan is an example of how fleet sales can lower resale values. As a perennial favorite of rental companies, police departments, and cabbies, the Crown Victoria can't hold its value in spite of good crash-test results and decent reliability.
3. Buick Rainier - With just 690 units sold in August '06 compared with 12,901 of its Chevrolet TrailBlazer sibling, the Rainier SUV gets the double whammy of costing more money and depreciating faster.
4. Lincoln Town Car - A recent Consumer Reports study found the venerable Town Car (last redesigned for 1998) to have the most generous incentives of any vehicle on the market. An old design with heavy discounts is not a good combination for resale.
5. Dodge Caravan / Grand Caravan - These minivans are rated midpack in Consumer Reports testing, below newer and better models. The heavily discounted, aging Caravan remains a strong seller in the category, probably contributing to an oversupply.
6. Mercury Grand Marquis - The Grand Marquis is a twin of the Ford Crown Victoria, sharing its dated, 20th-century design. Like the Ford, it has had average reliability and good crash-test results, but it's at the bottom of Consumer Reports' large-sedan test ratings.
7 GMC Envoy - Like the Buick Rainier, the Envoy is a twin of the Chevrolet TrailBlazer. Both the Envoy and TrailBlazer are among the lowest-performing midsized SUVs in Consumer Reports' test ratings in addition to unimpressive crash test results and poor reliability.
8. Ford Explorer - The high-volume Ford Explorer has a history of poor depreciation that is expected to continue, despite a freshening for 2006. The midlife update did reduce noise levels from both powertrains, as well as improve interior fit and finish.
9. Buick Rendezvous - Derived from GM's minivans, this SUV has had average reliability but mediocre performance in tests. It will be discontinued by the end of 2006.
10. Chrysler Town & Country - This minivan is a twin of the Dodge Grand Caravan, and shares the Dodge's below-average reliability and midpack ratings in Consumer Reports tests.
Thanks, Jody!