Depreciation Ratings as per Automotive Leasing Guide

We all know that a vehicle is not a sound investment, but a necissary 'evil' in these times. If I were an investor working for you and asked you to give me $30k and told you in 5 years that your investment would be worth $12k, you'd fire me! And rightfully so. All cars depreciate, however there is damage control! Some cars depreciate a heck of alot faster than others, and there are alot of cars to choose from out there.

Why do some cars hold their value higher (and in some cases 'head and shoulders' higher) than others you ask? Here are a few reasons that I can come up with;

a) Fleet and Rental cars depreciate fastest because when the rental company is done with the car, the manufacturer flips it back into the market at a heavily discounted price as incentive to move it. Not too many people go out of their way to get a rental car, because most people know how rental cars are driven/treated.

b) How does the car age? Does it develop squeaks and rattles? Overall fit and finish has to be high for a 3-5 year old car with decent mileage on it to do well in this catagory.

c) Safety ratings help a car stay current. Just take a look at some ratings 5 years ago to today, some cars have maintained a high rating throughout, where alot of cars have been 'hit and miss' or poor from the get go.

d) Low maintenance costs along with overall Reliability/Dependability of the vehicle. Consumer Reports has a nice study on this topic, and it's NO secret, the cars that tend to hold their value the most are usually the most reliable as well.

Here is a link to the Automotive Leasing Guide; http://www.alg.com/

"We are a leading provider of residual value information, analytical data products, software solutions, and consultation to the automotive industry. Please browse our web site for more information about our products and services, news involving ALG, and become a member to our online services. If you are a consumer or lessee, please visit Leasing 101 under the Consumers section for basic information on automotive leasing."

Now whether you Lease or Buy, cars depreciate the same, so here is a direct link to the 5 Star ratings system;

https://www.alg.com/deprratings.aspx?sid=43

It's a good read, and simple to use. Hope it helps.