Resale Value, and Why it’s Important to You

When you’re shopping for a new vehicle, the resale value may not make the list of things you check. In reality, resale value, also called residual value, can mean money in your pocket when it comes time to trade-in or sell your new car. It can be one of the biggest overall costs of ownership.

Here’s some news to celebrate: The projected resale value of Ford, Lincoln and Mercury vehicles after 36 months in service increased by $1,310 per vehicle from 2009 to 2010 models. That’s more than any other full-line automaker. This calculation is based on the straight average of all trim levels of each nameplate from Automotive Lease Guide (ALG) January/February 2010 Residual Value Forecast with volume being weighted against R.L. Polk new vehicle registration data.

Want more news to celebrate? The 2010 Ford F-150 earned the 2010 ALG Residual Value award in the full-size pickup category.

Want more still? How about the 2010 Ford Taurus being given 2010 Kelley Blue Book’s Best Resale Value award in the full-size category? They also gave the Best Resale Value award in the full-size pickup category to the 2010 Ford Super Duty.® You can click here to read an interview with James Bell, executive market analyst with Kelley Blue Book’s, about these awards.

“We are very pleased that the quality and fuel economy our products are delivering is reflected in our residual values,” said Ken Czubay, Ford vice president, Marketing, Sales and Service.

Ford already held a residual value advantage over its U.S.-based rivals. Now, with the improvement in the 2010 model year, Ford has narrowed the gap with leading Asian automakers, including Toyota. In fact, some Ford vehicles have now surpassed competing vehicles from Toyota in average residual values. The 2010 Ford Fusion midsize sedan, for example, is expected to be worth $687 more than the 2010 Toyota Camry after 36 months in service. And the residual value of the 2010 Ford Flex full-size crossover commands an $1,800 premium over the Toyota Highlander.

A steady stream of new products has helped boost Ford’s residual values. For example, the redesigned 2010 Ford Taurus’s projected average resale value after 36 months in service is $4,862 more than the 2009 Taurus. The Taurus was redesigned inside and out and features a host of new features and technologies.

“The ultimate measure of the health of an automotive brand is its residuals,” said Waldek Raczkowski, Ford residual business analyst. “We have great new products with good quality, fuel economy and technology. We are pricing our vehicles properly and setting our volumes appropriately to meet market demand. This adds up to a significant increase in residual values.”

In addition, Ford’s improved products and brand image is translating into higher residual values. Compete Inc., a Massachusetts research firm that studies online car shopping, says Ford has surpassed Toyota in customer consideration for the first time since it began tracking such data in 2002. Compete data show Ford surpassed Toyota in customer consideration in September, October and November.

Related Tags
fuel economy
kelley blue book
resale value
super duty
trade in

EdIdeas Is Ford Focus quality better than that of Corolla's or Civic? How can Ford prove that? Why isn't retail value not as good, if it is as good quality?
4 year(s) ago via
Ira Yarbrough When is the 2011 Edge 4cyl due to come out? Is there a package that will include an adjustable gas pedal?
4 year(s) ago via
Tracy If it still has the original Continental Tires you could make the noise disappear by replacing them with another brand. The Continentals get scalloped on the edge of the tready and make a huge noise.
4 year(s) ago via
Vikram I have been a loyal Toyota customer. Recently, I bought a 2008 Ford Escape. It was much before the Toyota recall. What I am trying to point out here is that the quality , safety and the realibility message of Ford Motor Company is being felt across the world. Keep up the good work.
4 year(s) ago via
Marcos Padilla I have a 2010 Milan Premier AWD V6, and a 2010 Focus SE after previously having an 05 explorer, my milan is the best yet, Ford has really stepped it up when it comes to features, quality, design, and available technology. I have driven many other car makers and none can compare to the initial quality that I have experienced overall from driveability, handling, ride, and comfort, Ford continues to be ahead of the pact. Thanks for building a great product, i look forward to what the future brings!
4 year(s) ago via
Marcia I love my 2010 Ford Mustang. The only drawback is the headrest is tilted too forward. Is there anything in the works for an optional headreast. I drive with my seat tilted back so that I can compensate for the awkward headrest position.
4 year(s) ago via
fred plant .....I don't think Ford can really claim that "overall the warranty is competitive" really isn't ...not with domestic vehicles and not with overseas vehicles.... (I have been driving Fords for 30 years....with sometimes as many 6 in the driveway)
4 year(s) ago via
Laurie Any plans for a right hand drive Escape for rural mail carriers? I'd sure buy one!
4 year(s) ago via
Bill Manson My wife bought a 2008 Ford Excape XLT Model , she just loves it to death the only issue I have is passanger seat is not comferable and alot of road noise in the back end of vehicle when on the highway other than that we are well satisfied so far of the vehicle . it has aotomatic 4 WD and just great in the snow here in Missouri
4 year(s) ago via
Scott Monty John, thank you for your question. We no longer offer a CVT transmission; the last one was build in 2007, and we don't have any plans to change the warranty structure, which overall is very competitive. Scott Monty Global Digital Communications Ford Motor Company
4 year(s) ago via
John Will Ford be matching Nissan's warranty extension on all cars that have the CVT transmission? I hope Ford sees the value in matching the competitions change on their drivetrain Warranty from 6/60 to 10/120. This would be a great move to show Ford supports its products and it's existing customers as much as the competition.
4 year(s) ago via
Atheer Shubber I love ford cars
4 year(s) ago via
John Gervais Keep up the good work FMC!!
4 year(s) ago via
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