European autos have resale edge over domestics

Recent surveys show that the Detroit Big Three are starting to lose footing on their vehicles resale values. Kelly Blue Book is saying that the top five brands with the best overall predicted resale value are Volkswagen, BMW, Honda, Acura, and Porsche. The rest of the Top Ten are Lexus, Subaru, Toyota, Infiniti, and Audi. Of course, none of these are Big Three domestics. Many of those brands made up the 1o worst picks for resale value for 2008.

Why the big turn? Simple. Over production. The Big Three lean towards overproducing their vehicles. Then they slap on huge discounts and rebates. Those combined with the over abundant supply of Taurus, Impala, and Stratus fleet and rental cars. Helps to absolutely destroy the resale value of those cars.

Volkswagen is the surprise comeback kid on the survey list. They have steadily grown over the last 5 years. Thanks to big boosts in quality, fuel efficiency, European styling, and exceptional value.

Source: The Wall Street Journal