New Car Blues

Physician's Money Digest, February15 2005, Volume 12, Issue 3

Automotive Lease Guide

Drive your shiny new car off thedealer's lot and its value plunges by anaverage of 38%, according to the. To some,that's a good reason to think pre-ownedwhen car shopping, but if you're set onnew wheels, shop for a car that willhave a high residual value 3 to 5 yearsout. Luxury cars usually do better atholding on to their value, with a 2004BMW projected to retain 55% of itssticker price in 3 years. Lexus, Acura,and Mercedes are close behind, retainingmore than half their cost. For lower-pricecars, Honda, Toyota, Volkswagen,and Nissan are all projected to hang onto more than half their value after 3years. To find residual-value figures, goto www.edmunds.com.