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Large SUVs lead small cars in resale market
As buyers in the vehicle lease
market have become more aware of rising gas prices and exhaust emissions, they have sought out more hybrid and electric vehicles.
Despite that trend, the big, gas-slurping SUV still has one advantage over the small and efficient sedan - resale value.
The Kelley Blue Book's 2010 survey reveals that even when prices spike at the pump, big SUVs and crossovers retain the highest resale value in the used car trade, while small cars stumble to the lowest return, according to USA Today.
Full-size SUVs in the 2011 model year posted 33.5 percent for their predicted resale value after five years of ownership, while subcompact cars are forecast to resell for just 29.6 percent of their value. Those figures are up from last year’s survey by 2.7 percentage points for the SUVs and just 0.7 points for the cars.
One reason for the result is Americans' love of leasing a car
that is larger than others on the road, KBB resale value expert Eric Ibarra told the newspaper. A stronger reason is supply and demand. Automakers cut their production of big SUVs after gas prices spiked in 2008, driving up demand for the few models available. At the same time, many brands are flooding the market with new small cars.
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