Residual value is something to consider when shopping for a new vehicle. Higher residual values mean lower monthly payments if you decide to lease the vehicle and better resale value if you decide to buy it. However, these are the minivans, pickups and SUVs with the lowest residual values for 2004 — that is, they're likely to depreciate the most during the ownership period. Below, we show the percentage of its original value that each vehicle is likely to retain after five years with an annual mileage of 15,000. Note that the residual value percentages are based on the national True Market Value® (TMV) price, plus typical options and destination charge.
Although you might think these are vehicles to avoid, keep in mind that many of them don't cost much to begin with. A Ford Ranger might not be worth much in dollars after five years on the road, but if it continues to provide reliable transportation, it has an intangible value to you as an individual. Moreover, vehicles with low residual values can be steals on the used car market, as you may be able to pick up a low-mileage truck on this list for much less than you'd pay for competitors that command higher resale prices.
1. Chevrolet Tracker — 23%
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2. Ford Freestar — 25%
Ford Ranger
7. Pontiac Montana — 31%
10. GMC Sierra 2500 (light-duty) — 34%
Jeep Grand Cherokee Kia Sedona