Toyota and Lexus take the top brand honors once again in the 21st annual Kelley Blue Book Best Resale Value Awards. New for 2023, the awards add an Electric Vehicle category with six segments.
2023 Best Resale Value Awards
KBB's 2023 Best Resale Value Awards honor the top brands and vehicles by segment when it comes to best resale value. Specifically, researchers recognize vehicles for the best projected value five years down the road. As you know, resale value is something CarPro Show radio host Jerry Reynolds talks about often on the show when giving car buying advice to listeners across the country.
KBB says while most people know about depreciation and the old adage "a vehicle loses value the moment you drive it off the lot!", the average person may not be fully aware of how much it can vary between vehicles. KBB says understanding your car's resale value can make the difference of hundreds even thousands of dollars in the long run.
Currently according to KBB data, car shoppers are paying record-high prices for new vehicles due to market conditions amid inventory and supply issues. At the end of 2022, the average transaction price (ATP) of a new vehicle reached a record high of $49,507, and ATPs have remained above sticker price, or MSRP, for more than a year, according to KBB data. Given the sky-high new-car prices buyers are paying, KBB experts recommend shoppers seriously take into account a vehicle's resale value when deciding what vehicle to buy.
Now to this year's award winners. Toyota wins for Best Resale Value: Brand for 2023. It's the automaker's third consecutive win and 7th total. Lexus wins Best Resale Value: Luxury Brand for its second consecutive year, its fourth win overall.
"Toyota wins Best Resale Value: Brand for 2023, while its sibling Lexus wins Best Resale Value: Luxury Brand, both enjoying top honors for the second consecutive year," said Janice Yoell, senior manager of valuations for Kelley Blue Book. "In addition, Kelley Blue Book made some changes to the vehicle categories for the 2023 Best Resale Value Awards, adding additional categories to reflect the growing electric vehicle market. In recent years the awards featured just one overall Electric Vehicle category, but now Kelley Blue Book's Best Resale Value Awards include categories for Electric Car, Luxury Electric Car, Electric SUV, Luxury Electric SUV and Electric Truck. As the automotive landscape shifts and manufacturers continue to introduce more and more electric models, it was fitting to expand the award categories accordingly."
Here's a list of all the winners:
KBB says the average 2023 model-year car will depreciate 45% after a five-year ownership period. So for example, if you pay $45,000 for a new car today, it will only be worth roughly $20,250 after five years. Kelley Blue Book's Top 10 for Best Resale Value in 2023 are projected to retain around 60% or more of their MSRP after the initial five-year ownership period.
Resale Value Factors
Resale value for new vehicles can vary greatly because it depends on a number of factors including supply and demand, current and projected future market conditions and more. Vehicles with average or below-average resale values generally are usually easy to find. Those with higher resale value best typically are discounted the least and tend to generate high levels of consumer interest.
About The Awards
The Kelley Blue Book's Best Resale Value Awards, now in their 21st year, are based on projections from the Kelley Blue Book® Official Residual Value Guide. Kelley Blue Book® Residual Values are established by experienced automotive analysts that review the output from statistical models built upon millions of transactions. Vehicles that earn the highest five-year residual values, expressed as a percentage of their original Manufacturer's Suggested Retail Price (MSRP), are selected for these prestigious awards. Low-volume vehicles are excluded from award consideration, except in the electric, luxury and sports car categories.
Residual values reflect projected future auction values for vehicles in average condition with 75,000 miles at the end of a five-year lease or ownership period. Kelley Blue Book's residual values are used by manufacturers, banks, financial institutions and the automotive leasing industry.