Kelley Blue Book, a resource for used and new car information, says it is releasing a forecast of 10 2003 model year vehicles that will best hold their value over the next five years. Based on current vehicle data, expectations of the future economy and the combined experience of the Kelley Blue Book editorial team, a list was created forecasting which 2003 model vehicles that will retain the greatest amount of their original MSRP (manufacturer's suggested retail price). 2003 Models KBB Forecasts Will Best Hold Their Value Over Next Five Years
Lexus LS 430
(High performance, low volume vehicles or vehicles with an original MSRP over $60,000 were not taken into consideration.) According to KBB, while a new car should not be considered an investment, there are some vehicles that hold a greater percentage of their original value than others. Several factors determine the current market value of a vehicle. The factors that carry the greatest weight are consumer demand, availability, and vehicle quality. According to Kelley Blue Book Executive Editor, Charlie Vogelheim, many of the vehicles that made this year's 2002 models list may not make the list five years from now. He explains that supply and demand play the biggest role in year-over-year value. According to the company, the economy had a significant impact on the used vehicle market in 2002 and will continue to impact values in the coming year. 2002 saw zero percent financing and other incentives that spur new vehicle sales. But with the spike in new vehicle sales, the market experienced a huge in-flux of used vehicles. Kelley Blue Book also saw the largest number of vehicles to date coming out of lease programs, about 3 million, adding to the number of used vehicles on the market. All of these conditions contributed to a "glut" of used cars that significantly drove down the values of many used vehicles as much as 10 - 12 percent over the previous year. Based on company and outside research, it was shown that Kelley Blue Book was the first to respond by updating and reporting the new, lower values of used vehicles on its Web site. All Kelley Blue Book used vehicle values are based on data obtained from dealers, auction data, remarketers and consumers through a feedback tool on the company's Web site, kbb.com. According to KBB, every Kelley Blue Book value takes into consideration the region of the vehicle, its engine, transmission, trim style, optional equipment, current mileage and current condition. In addition to actual vehicle details, other considerations that determine a vehicle's value include the current marketplace, current economy and again, supply and demand. For more information on Kelley Blue Book values and definitions, see www.kbb.com
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