NADA Used Car Guide Finds New, Redone Pickups and SUVs Retain Value Best
In a recent report on the retention value of new and redesigned 2016 models (now 1 year old), the NADA Used Car Guide team finds that the 2016 Toyota Tacoma midsize pickup and two midsize SUVs—the 2016 Honda Pilot and premium 2016 Volvo XC90—had the highest retention values among new or redesigned models surveyed and were near the top of their segments in holding their value. In addition, the Tacoma and XC90 performed well as rated by new-vehicle owners/lessees in the J.D. Power 2016 U.S. Initial Quality StudySM (IQS) and/or the J.D. Power 2016 U.S. Automotive Performance, Execution and Layout (APEAL) Study.SM
Considering the retained value of new models and redesigns can provide useful insights for new- and used-vehicle shoppers, automakers, and dealers, the report suggests. According to the Guide’s team, retention value is influenced most by: improved quality and dependability; better fuel economy and performance; and enhanced design plus new-vehicle pricing, incentive levels, and production volume. The NADA Used Car Guide—a division of J.D. Power—calculates the recent 3-month average for trade-in value divided by a model’s MSRP to determine depreciation and retained value. Below are highlights for the three above-referenced models’ retention performance:
- 2016 Toyota Tacoma is among the more problem-free models in the 2016 U.S. IQS and also earns high scores for styling in the 2016 U.S. APEAL Study. The Tacoma’s retained value is 87%—which is 8.4 percentage points above the Midsize Pickup segment average of 78.6% and 4.4 percentage points higher than the previous 2015 model-year Tacoma.
- 2016 Honda Pilot with rounder styling and refined interior boasts a retention value of 81.8%—which is 11.5 percentage points higher than the Midsize SUV segment average of 70.3% and 5.2 percentage points higher than the 2015 Pilot’s score.
- 2016 Volvo XC90 is another complete redesign and ranks among the top models in the 2016 U.S. APEAL Study for comfort and styling. Its retention value is 79.7%—which is 7.2 percentage points above the Luxury Midsize SUV segment average of 72.5% and just below the 2016 Land Rover LR4 and Lexus GX averages of 88.5% and 82.6%, respectively.
In a look at a few other new and redesigned 2016 models’ retention performance, the 2016 Scion iA ranked third in the Guide’s Subcompact Car segment with a retention value of 63.4%—which is 6 points above the segment average. Among Compact Cars, the redone 2016 Honda Civic stood in fourth place with a 74.1% retention value—which is 5.2 percentage points higher than the outgoing 2015 model.
In the Mid-Size Car segment, the new 2016 Buick Cascada receives a segment-level award in both the 2016 U.S. Initial Quality Study and the 2016 U.S. APEAL Study, and its retention value is 72.6%—or 6.7 percentage points higher than the segment average, ranking second behind the Subaru Outback (80.3%). The redone 2016 Nissan Maxima had the highest retention value of 67.3% in the Guide’s Large Car segment—which is 6.7 percentage points above the segment average of 60.6%.
Among Sports Cars, the 2016 Mini Cooper was supreme, with a retained value of 73.9%—better than the segment average of 70.2%—while the redone 2016 Mazda MX-5 Miata’s 70.8% retention value was nearly a point higher than the outgoing 2015 model. BMW’s redone 2016 7 Series ranked at the top of the Guide’s Luxury Large Car segment with a retention value of 76.6%—more than 10 percentage points higher than the previous 2015 model’s score, which was the biggest improvement for any redesigned model analyzed.
Two new Subcompact SUVs also held their values and surpassed their segment average (66.7%). The 2016 Honda HR-V’s retention value was highest in the segment—75.6%—followed by the 2016 Mazda CX-3 with 74.9%. The redesigned 2016 Hyundai Tucson exceeded the Guide’s Compact SUV segment average of 68.9%, with a 71.6% retained value, which nearly matched the previous 2015 model’s retention value. Among three-quarter-ton or Large Pickups, the redone 2016 Nissan Titan XD retains a value of 74.2%, which ties with the current 2016 Chevrolet Silverado 2500 HD in overall retention, and is 2 percentage points above the segment average of 72.2%.